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.

  1. Commission Broker

    Someone who gets paid by the brokerage company for which he works ...
  2. Commission

    A service charge assessed by a broker or investment advisor in ...
  3. Futures

    A financial contract obligating the buyer to purchase an asset ...
  4. Broker

    1. An individual or firm that charges a fee or commission for ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves ...
  6. Swap

    A derivative contract through which two parties exchange financial ...
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