The world of brokers are highly livid and depend upon how many happy customers they have who are paying for the services and trades, without a single free trader service. The services expected out of brokers is becoming highly competitive in nature , as every suggestion of stock signal is worth the money invested, an incorrect suggestion may ruin the trade, and wipe of the hard earned money of the trader/ investor. Hence, the process of choosing a broker online is a difficult task, as the service and speed matters a lot in this form of investing in volatile markets every single day and makes a required amount of profit.
Electronic trading has increases the number of traders as well as the volume of trading immensely over a decade, the online trading has virtually been experimented by all of us at least once by every trade rot try their luck in making easy, quick cash to meet their own financial requirements. Liquidity is another important factor while trading in some market sensitive trades like crypto currency that can change every second in global exchanges. Imagine how stressed the brokers are, when their neck is almost in the noose, there are too many things expected out of the brokers, traditional and online.
They are expected to pick the best stocks for the trader to execute and make a good consistent profit, either in day trading or in futures that will affect their brokerage and the payouts for the trader. The liquidity factor is becoming very wide, and fragmented due to number of exchanges that are a clickaway, the fees the broker has to himself bear to register with the trading platforms, the customer feedback, his career charts about how effective the trades executed form his trade picks are always expected from the higher end. The advent of direct market access is becoming reality and hence the services of the brokers are often at jeopardy.
The competition is tough; there is a lot of internalization of trades by different brokers who are competing with a global talent pool of traders who are both technically sound and have a high net worth of client who reap them good amount of brokerage from single trades. Volatile markets, lot of negative trade influences the traders to look for other brokers who charge less and give good service. The market is decentralized and there is no strict norm for the online brokers to charge a specific percentage or amount on per trade basis , making it a tight rope walk.