According to my understanding, some brokers don’t charge commission fees for trades. Instead, they make money by widening the spread between the bid and ask price. The spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask). By widening the spread, the broker pockets the difference.
For example, imagine a stock is actually trading at $10.00 per share. A broker might set a bid price of $9.90 and an ask price of $10.10. In this scenario, the spread would be $0.20. If you buy a share at the ask price, the broker profits $0.10 per share. This can add up quickly, especially for large trades. Is dealing with such brokers haram?