The hidden costs of "free" investing
Is commission-free investing really free?
In this video, Anna Pavlova, Professor of Finance at London Business School, explores how the rise of zero-commission trading has transformed financial markets—and why many retail investors may be paying hidden costs.
Drawing on her research, Anna explains how payment for order flow has fuelled a surge in options trading, despite the significant risks involved. The findings reveal that while investing has become more accessible than ever, many inexperienced investors are trading increasingly complex financial products and losing billions in the process.
The research highlights why understanding the true costs of investing is just as important as reducing the upfront fees.
Is commission-free investing really free?
In this video, Anna Pavlova, Professor of Finance at London Business School, explores how the rise of zero-commission trading has transformed financial markets—and why many retail investors may be paying hidden costs.
Drawing on her research, Anna explains how payment for order flow has fuelled a surge in options trading, despite the significant risks involved. The findings reveal that while investing has become more accessible than ever, many inexperienced investors are trading increasingly complex financial products and losing billions in the process.
The research highlights why understanding the true costs of investing is just as important as reducing the upfront fees.