What kind of deals do high frequency traders have with brokers or exchanges regarding commissions for stock trading? For an individual, it is nowadays possible to get to as low as 10 basis points per a round-trip trade. However, if one is buying and selling throughout the day, this quickly accumulates to enormous amounts.
Are hedge funds engaging in high frequency trading immune to this, i.e. are we talking about trading costs that are in a completely different ballpark? Or is it that even after considerable trading costs, the trading strategies are still profitable? Any studies or surveys published about this?