THE BUSINESS OF INVESTING

In this article, I delve deeper into the structure of financial institutions that we do business with anytime we think of investing in stocks.

The financial brokers are the medium through which most individual and institutional investors access the markets.

The irony is that most investors don't understand how these institutions are structured.

Most brokers in this time and age have abandoned their fiduciary responsibility. Instead of stewardship, these institutions have turned into marketing firms, with the sole focus of extracting as much fees from investors as possible.

Delve with me into this exposé, in order to understand why a dollar earned by the broker is a dollar irretrievably lost by the investor.

After all, fees matter. Yet most active investors continue to gamble in stocks as if fees don't matter.

And the brokers won't tell you this or even warn on their websites. For them, a naïve investor is their cash cow.

The time to be taken advantage of is over. In the new age of truth, nothing hidden shall stay hidden.

Fees matter, and the more frequent one trades, the more leakages in fees to their brokers.