Long-term investing provides steady profits for brokerages through fees, securities lending, and order flow, often without investors realizing.

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First, fees on investment products. Brokerages collect management fees on ETFs and mutual funds, adding up to thousands over decades.

Next, securities lending. Your stocks can be lent to short-sellers, generating income for brokerages while you earn nothing.

Inactivity. Long-term portfolios require little management, allowing brokerages to collect fees without doing much work.

Another way is through payment for order flow. Brokers sell your trades to market makers, who profit from tiny price differences, cutting you out.

Finally, margin loans. Borrowing to invest comes with high interest rates—sometimes over 10%—ensuring brokers profit no matter how your portfolio performs.

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For investors seeking alternatives, event-driven strategies focus on market-moving events like earnings or contract announcements, enabling faster returns with reduced risks. Tools like LevelFields analyze millions of events monthly, providing insights to help investors stay ahead.
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Invest smarter by understanding where brokerages profit and exploring strategies that work better for you.

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Watch the video here:
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