Commission House

DEFINITION of 'Commission House'

A brokerage or merchant firm which buys and sells futures contracts for customer accounts. A commission house generates income by charging a commission on the transactions that are made on behalf of the customers. Also known as a Futures Commission Merchant (FCM).

BREAKING DOWN 'Commission House'

Services might include transactions such as buying and selling bonds, stocks or commodities. More specifically, a commission house gets paid for executing orders, arranging settlement, or servicing margin accounts on behalf of their clients. They typically use omnibus accounts to do this.

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    The step towards becoming an active trader is a big one, because the world of active trading is quite different from that ... Read Answer >>
  2. 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 >>
  3. What is the difference between investment banks and merchant banks?

    Merchant banks and investment banks, in their purest forms, are different kinds of financial institutions that perform different ... Read Answer >>
  4. What does the Daily Average Revenue Trade (DART) tell me about a brokerage?

    A decline in a brokerage firm’s DARTs is not necessarily a cause for alarm, but you need to understand the factors behind ... Read Answer >>
  5. Can I amend my 2015 tax return and declare 3 held income commissions I had in the ...

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  6. My FA recommended a wrap fee for me, is that appropriate?

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