Brokerage Fee

Loading the player...

What is a 'Brokerage Fee'

A brokerage fee is a fee charged by an agent, or agent's company to facilitate transactions between buyers and sellers. The brokerage fee is charged for services such as negotiations, sales, purchases, delivery or advice on the transaction.

BREAKING DOWN 'Brokerage Fee'

There are many types of brokerage fees added in areas such as insurance, realty, delivery services or stocks. Brokerage fees will usually be based on a either a percentage of the transaction or a flat fee. They can also be a combination of the two.

Here is an example of the fee breakdown from a typical stock brokerage:

Stock Price Over $2:per share over 999 shares.

Stock Price $2 and Under:of principal trade with a minimum of $28 charged.

RELATED TERMS
  1. Clearing Fee

    A fee charged by a clearing house for its services. A clearing ...
  2. Flat Dollar

    A fixed dollar amount, generally in the context of fees or commissions ...
  3. Exchange Fees

    A type of investment fee that some mutual funds charge to shareholders ...
  4. SEC Fee

    A nominal fee that was created by the Securities Exchange Act ...
  5. Service Charge

    A type of fee charged to cover services related to the primary ...
  6. Commission

    A service charge assessed by a broker or investment advisor in ...
Related Articles
  1. Investing Basics

    Understanding Brokerage Fees

    Agents charge brokerage fees for facilitating transactions between buyers and sellers.
  2. Retirement

    Are Fees Depleting Your Retirement Savings?  

    Each retirement account will have a fee associated with it. The key is to lower these fees as much as possible to maximize your return.
  3. Investing Basics

    How To Optimize Your Portfolio and Reduce Fees

    Investment fees aren't avoidable altogether, but there are strategies investors can employ to keep those fees at bay and reduce the impact on returns.
  4. Investing Basics

    How a 1% Annual Fee Can Ruin Your Nest Egg

    What kind of impact does an annual 1% fee have on your portfolio? The answer may surprise you.
  5. Investing Basics

    Are Fees Eating Up Your Nest Egg?

    You may not be able to avoid all fees associated with retirement planning, but you should know what you’re being charged for. Here's a list of common fees.
  6. Personal Finance

    Are Financial Advisor Fees Too High?

    Fees charged by financial advisors run the gamut. Are you getting a fair deal or paying too much?
  7. Savings

    How Foreign Transaction Fees Work

    Using a credit card when you travel can be costly. Here's what you need to know about foreign transaction fees – plus tips on making purchases abroad.
  8. Investing Basics

    What Are Transaction Costs?

    Transaction costs are expenses incurred from buying or selling securities.
  9. Retirement

    How Much Do You Know About 401(k) Fees?

    Here is a quick breakdown of fees that most people should know about when they look at their retirement account.
  10. Retirement

    401(k) Fees You Need To Know

    Many workers are largely unaware of the various fees that their plans charge them, or what the fees are for.
RELATED FAQS
  1. How can I prevent commissions and fees from eating up my trading profits?

    First off, understand that there is no universal system regarding trading commissions charged by brokerage firms. Some charge ... Read Answer >>
  2. What are typical trust fund management fees?

    Learn about trust fund management fees, such as the annual management fee, annual expense ratio, brokerage commissions and ... Read Answer >>
  3. How can an investor profit from the increase in popularity of discount brokerages?

    Find out how investors benefit when brokerages compete with each other, and how discount brokerages are changing the market ... Read Answer >>
  4. When using a brokerage, what are the fees?

    Are there ongo Read Answer >>
  5. What are some examples of sneaky credit card charges to watch out for?

    Review the most common sneaky credit card charges and learn how to protect yourself from unwanted charges from creditors ... Read Answer >>
  6. What are the best ways to lower my investing fees?

    Lower your investing fees by buying index funds or ETFs, choosing the right mutual fund share class, evaluating breakpoints ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center