Fees

Reflection is a for-profit company, and we expect to generate revenue in different ways:

Commissions

When an order is placed, we may charge a commission, which is visible on the Trade screen. This is to cover the cost of the commissions that we pay on the stock orders, and also to prevent people from spamming the system and submitting thousands of tiny orders. The commission could vary but will likely be between $0.00 and $1.00.

Spread

The other way we generate income is by creating a spread between the price at which we are able to buy or sell a stock on the exchange and the price which is displayed to the customer on the Trade screen. For example, if we are able to buy Oracle at $63.24, we might display a buy price of $62.86. The spread is not displayed explicitly, but can easily be determined by comparing the buy or sell price on Reflection with the buy or sell price on a real-time market data feed.

There is no maximum spread for a buy order; if a customer feels the spread is too high, they can simply choose not to buy the stock token. But for a sell order, setting an unreasonably high spread is unacceptable because if a customer wants to sell their stock tokens, they have no choice but to pay the spread. It is our goal to always keep the sell spread as low as possible, but we commit here to never raising the spread for a sell order above 1.5%.

Dividends

Ultimately, we hope to pass the dividends along to the customers, but at least initially, the dividends, if any, would be a revenue source for Reflection.