Traditional Brokers: Asset Retention Replaces Trading Volume as Core Metric
Established brokers such as Charles Schwab, Interactive Brokers, and Robinhood have long moved away from commission-based revenue. Their profitability now hinges on interest income from client cash deposits, margin lending, and securities lending. Under the zero-commission regime, these firms focus on growing assets under custody and retaining sticky customers rather than maximizing trade count. The asset retention model enables predictable earnings even in low-volume environments.
Challenges for Crypto Exchanges Entering Equities
In response to the prolonged crypto bear market, exchanges like Binance and Coinbase have launched or are exploring US stock trading features. However, they face steep compliance hurdles—including SEC registration, FINRA membership, and state-level money transmitter licenses—which demand substantial legal and operational investment. Moreover, the commission structure in US equities is already razor-thin, leaving little room for new entrants to undercut incumbents. User acquisition is another obstacle: crypto-native traders are accustomed to 24/7 trading and self-custody, while stock market regulators enforce T+2 settlement and KYC/AML rules that increase friction. As a result, crypto exchanges have yet to gain meaningful market share in equity trading.