How does the zero-commission model work?
How does the mini-commission model work?
When you open the account, you indicate which model you choose. You can always change.
Every order is executed at the best price available from multiple exchanges.
Freestoxx executes orders as dictated by the SEC's NBBO rule:
The National Best Bid and Offer (NBBO) is a Securities Exchange Commission (SEC) regulation requiring brokers to trade at the best available (lowest) ask price and the best available (highest) bid price when buying and selling securities for customers. The National Best Bid and Offer is the bid or ask price that the average customer will see. The Securities and Exchange Commission’s Regulation NMS requires that brokers guarantee their customers this price.
This is part of the broker comparison table
|FREESTOXX||DEGIRO||Trade Republic||Interactive Brokers|
|Commission per order
0,005 / share
|Minimum||$ 0,00||$ 0,50||$ 0,00||$ 1,00|
|Currency conversion cost per order||0,00%||0,25%||0,00%||0,00%|
|Order execution||NBBO||NBBO||Market maker||NBBO|
|Dealing spread (average)||–||–||+ 266%||–|
|Real-time market quotes
NBBO (National Best Bid and Offer) is the best price of all exchanges and markets. A market maker, on the other hand, adds a profit margin to the share price. Many investors are unaware of this 'invisible' cost. These are the additional market maker costs when you trade Apple, Tesla, Netflix, Amazon, etc.