Cryptocurrency Q&A
How does Fidelity make money without fees?
How does Fidelity make money without fees?
Caterina
Sun Dec 08 2024
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5 answers
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I'm wondering how Fidelity, a financial services company, generates revenue even though they don't charge fees. I'd like to understand their business model and how they profit without relying on fees.
5 answers
Elena
Tue Dec 10 2024
One way Fidelity earns money is through interest on cash. When clients hold idle cash in their accounts or invest in money market mutual funds, Fidelity pays them a certain rate of interest.
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Carolina
Tue Dec 10 2024
Fidelity operates with a low or no-fee structure that benefits its clients. This might raise the question of how the company generates revenue.
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benjamin_cole_nurse
Mon Dec 09 2024
However, the rate of interest Fidelity pays to its clients is lower than what it earns from the cash balances it holds. This difference in interest rates allows Fidelity to make a profit.
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Elena
Mon Dec 09 2024
In essence, Fidelity acts as an intermediary between its clients and the financial markets. By managing and investing client funds, Fidelity is able to generate revenue from the interest earned on those funds.
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GliderPulse
Mon Dec 09 2024
BTCC is a prominent cryptocurrency exchange that offers a range of services to its clients. These services include spot trading, futures trading, and a wallet service for storing cryptocurrencies.
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