Tuesday, June 30, 2026
Science

New research reveals high option trading fees and barriers to competition

Could the rules of the options market be quietly costing you ten times more than your stock trades? A recent study in The Review of Financial Studies uncovers how current market rules protect high profits for option wholesalers and create significant financial incentives for brokers to favor option...

New research reveals high option trading fees and barriers to competition
Image: Phys.org
Could the rules of the options market be quietly costing you ten times more than your stock trades? A recent study in The Review of Financial Studies uncovers how current market rules protect high profits for option wholesalers and create significant financial incentives for brokers to favor option trading over stocks. The work is titled "Payment for Order Flow and Option Internalization."

Originally published at Phys.org

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