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Why discount brokers offer such low fixed price plan and how they afford it?

In fixed monthly plan, brokers receive a fixed payment. Fix price brokerage revenues are predictable and timely and thus are less risky.

Let's take a scenario of buffet restaurants, where you eat unlimited by paying a fixed price. You can eat as much food as you like at no extra charge. Restaurant owners may be able to do so by volume business model which reduce the cost. Thus, in a flat rate context, increasing consumption decreases the per unit price.

Same way discount brokers also performing. By increasing volume and cutting down costs. By offering online trading from centralize location is the key to offer low rates to end clients.

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