Congratulations to our friends at IEX for reaching the 2% market share milestone yesterday.  As you all know by now, we are big fans (and participants) of IEX and continue to root for their success. While their speed bump is usually what folks talk about when they mention IEX, we think that their pricing structure is one of their most important features.  IEX has no membership, connectivity or market data fees.  But more importantly, they have an unconflicted, flat rate fee schedule .  For non-displayed liquidity, the transaction fee for brokers is $0.0009/share regardless if you make or take liquidity. (more…)

  The amount of money pouring into ETF’s continues at a staggering pace.  According to , $287 billion of new money entered the US ETF market last year and total U.S.-listed ETF assets grew to $2.56 trillion.  While ETF’s serve a very useful purpose by allowing investors to diversify at a low cost, it’s important to remember that not all ETF’s are the same.  Some of the larger ETF’s like SPY and QQQ are backed by the actual securities in the index but there are a number of other leveraged ETF’s which contain derivatives in their holdings which could cause tracking and risk issues.   (more…)