How does Fidelity make money from folks like me, who only trade select Vanguard ETFs?

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ETFs are a gateway drug

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Management fees in the fund.

likeuplifting

Not much but your unused funds land in a Fidelity core position. And over an entire client lifetime you may use more of their other services or buy perhaps some of their in-house funds.

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But don’t these go to Vanguard?

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Ahh sorry misread your question. Likely a small marketing fee. Forget what it is called

They also have custody of your funds and collect fees there.

Incorrect

Commission on you buying the ETFs

There will be a different structure which is effectively a commission. Be is a revenue share, annual rebate, spread on prices etc.

Like how all the FX desks in airports are comission free.

If you aren’t paying commission, then they are doing sub-second trades to take a cut of your transactin, or they are using/selling the data they know about your trading habits.

Thanks all! So seems like it’s free...

If something is free, then you are the product.

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