Broker rebates cost investors $5B a year, researchers say

The rebates stockbrokers receive for steering business to certain stock exchanges could be costing mutual funds, pension plans and other investors up to $5 billion a year, according to a recent study. Investors lost an average of four-tenths of a cent per share traded because of trades being executed with exchanges offering suboptimal prices, researchers found.

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Study Says Broker Rebates Cost Investors Billions - New York Times (tiered subscription model), The

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