Not each broker has the same goals in mind; their revenue model will dictate how they build their platform policies and execution methods. Some brokers charge fees and/or spreads transparently to the client, while other brokers charge clients primarily based on the amount of money lost or traded. With factory style brokerage models, traders are encouraged to trade frequently and use margin again to increase the volume of trades. 

The focus in these models is on increasing the volume of transactions rather than providing quality execution services. As such, traders may engage in actions that are profitable to the broker, and less so to them. These inherent conflicts of interest are typically not disclosed.

It is important for traders to understand broker incentive structures; this is because broker incentive structures have a greater impact on trader outcomes than most people are aware of. For example, brokers often have their platform rules, order handling, and risk limits in alignment with profitability. Therefore, increasingly being aware of these inherent and structural conflicts will allow traders to better evaluate brokers before making a decision on which broker to use.