Clearing Fee


DEFINITION of 'Clearing Fee'

A fee charged by a clearing house for its services. A clearing fee is most often associated with the trading of futures. Transaction fees often include both a brokerage fee and a clearing fee, but seldom include a delivery fee, since the actual delivery of the underlying asset in a future contract is rare.

BREAKING DOWN 'Clearing Fee'

A clearing fee is a variable cost, as the total amount of the fee may depend on the size of the transaction, the level of service required or the type of future being traded. The effect of clearing fees is felt by investors who trade several futures contracts in one day, since long positions spread the per-contract fee out over a longer period of time.

  1. Futures Market

    An auction market in which participants buy and sell commodity/future ...
  2. Clearing House

    An agency or separate corporation of a futures exchange responsible ...
  3. International Commodities Clearing ...

    An international clearing house for futures markets around the ...
  4. Futures

    A financial contract obligating the buyer to purchase an asset ...
  5. Commodity Futures Trading Commission ...

    An independent U.S. federal agency established by the Commodity ...
  6. Clearing Broker

    A member of an exchange that acts as a liaison between an investor ...
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