Two searches, one worry: what is the catch when a trader says no fees, and what does the spread mean? Both come down to how a trader makes a living.
Fees and spread are two ways to earn the same money
A trader has costs: it validates your claims, takes on registry and market risk, funds your payment before it sells the certificates and employs people. To cover them it can:
- charge a fee, which you can see on the statement, or
- keep a spread, which is the gap between what it pays you and what it sells at.
“No fees” means the first is zero. It does not mean the second is. That is honest and normal, provided you can see the rate.
What the spread is
If the market price is about $38 to $40 for registered STCs, and a trader pays you less than that, the difference is the trader’s margin. It covers the trader’s costs and risk. A narrow spread with fast settlement is good value. A wide spread with slow settlement is not.
Reference points at the time of writing:
- STC spot market: roughly $38 to $40
- STC clearing house ceiling: $40
See STC trading price versus the clearing house for how to read the gap.
Where the catch can hide
| Possible catch | How to spot it |
|---|---|
| A lower rate that cancels the “no fee” saving | Compare net dollars per job |
| Slow payment | Check the term and the trigger |
| Rate that moves between lodgement and payment | Ask when the rate is locked |
| Volume minimums | Read the tier terms |
| Recall clauses | Check what happens if a claim fails |
| Exit rules | Can you leave with claims in flight? |
What a trustworthy no-fee offer looks like
- The rate is published and dated, not “call for pricing”.
- The lock point is clear: for example, locked on lodgement of a complete claim.
- Settlement timing is stated in writing.
- The terms say there are no processing, admin, registry or subscription fees.
- Someone named is accountable.
What this means for installers
We charge zero fees, ever, and publish the rate daily on pricing. We still earn from the difference between what we pay and what certificates sell for, and we do not pretend otherwise. What you get is the rate you see, locked when a complete claim is lodged, settled in 24 hours for established partners, with a named account manager.
For the fee models other traders use, see trader fees per certificate and per job. For a wider view of the market, read how to compare STC traders and the Partner Program.