Commission
Also called: trading fee
A commission is a fee a broker charges for placing a trade. Most US brokers have charged $0 commission on stock trades since 2019.
Sales still carry two tiny regulatory fees: the SEC's Section 31 fee on the dollar amount sold and FINRA's trading activity fee per share. Options usually cost about $0.65 per contract.
Related terms
- Broker: A broker is a licensed firm that places trades on an exchange for you and holds your investments in an account, like Fidelity, Schwab or Robinhood.
- Bid-ask spread: The bid is the highest price a buyer will pay right now, the ask is the lowest price a seller will accept, and the spread is the gap between them.
Practise with $10,000 in play money
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