Double Dipping

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?

    Discover how an insurance broker makes money. Insurance brokers are important in helping people find the right insurance ... Read Answer >>
  3. Why are most brokerage firms owned by banks?

    Learn about the differences between investing with a bank-owned brokerage firm or with an independent broker. Get real answers ... Read Answer >>
  4. My broker just sold securities out of my account without my permission. Is this legal?

    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 >>
  5. What is the difference between fee-based advisors and commission-based advisors?

    Understand the difference between fee-based advisers and commission-based advisers. Learn what types of duties each type ... Read Answer >>
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    First off, understand that there is no universal system regarding trading commissions charged by brokerage firms. Some charge ... Read Answer >>
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