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?

    Double-dipping occurs when a broker gets paid twice for the same transaction. Read Answer >>
  2. What is the cost of a share purchase?

    Find out how the total price of a share purchase is dictated by the current stock price and the fees the brokerage company ... Read Answer >>
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