DEFINITION of 'Double Dipping'

For brokerage firms, when a broker puts commissioned products into a fee-based account. The broker makes money from both the client and the commission.

BREAKING DOWN 'Double Dipping'

There is more than one meaning for the term depending on the context. For example, the practice of drawing two incomes from the government, usually by holding a government job and receiving a pension, is also referred to as double-dipping.

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RELATED FAQS
  1. What is financial double-dipping?

    In the financial industry, double-dipping occurs when a financial professional, such as a broker, places commissioned products ... Read Answer >>
  2. How does an insurance broker make money?

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  3. Why are most brokerage firms owned by banks?

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    Your broker's actions are not legal unless he or she sold the securities under certain conditions. Let's look at the two ... Read Answer >>
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