Lower Trading Costs Saving Investors Billions Despite New Exchange Fees

Average costs per trade are falling, thanks to volumes increasing, while many exchange costs remain unchanged despite inflation.

Somewhat offsetting that is overall costs rising, mostly due to new venues diversifying their revenue base.

Exchanges compete not only on all-in costs but also on the trading profits they create for customers.

Exchanges use different fee models (maker-taker, inverted, fee-fee) which impact market quality differently.

Tighter spreads from exchange competition likely save investors billions, exceeding the costs.