Brokers don’t make money when their clients do. Brokers make money when their clients transact.
Because of this structure – where brokers get a commission every time the client buys or sells a financial product, but are NOT penalised for the losses incurred by the client, nor are they rewarded when their clients make a profit, it is common for brokers to encourage clients to buy and sell instead of staying put and holding on to good companies.
