Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

An Insight into Stock Commission

By Yogita Bali Subscribe to RSS | December 29th 2011 | Views:

The stock commission is a fee charged by brokers for administering a trade; executing a transaction that is buying and selling of stocks and shares based on number of shares, bonds, options and/or their dollar value; and giving investment advice. When trading stocks, the commission charged can divide the thin line between a profit and a loss.

Stock commission can also be explained as a service fee assessed by an agent / broker or dealer to facilitate the purchase or sale of a security.

Stock commission is charged to the clients by the brokers for dealing on their behalf or for assisting in buying or selling securities and is also referred to as brokerage. The amount is usually based on number of shares or the total dollar amount of the trade. So stock commission, in other words, is known as brokerage fees. Commissions for stocks are normally quoted at a flat rate range (which is the staple of retail brokers) or on a per share basis.

But not all brokers apply commissions and most of them add their mark up to the spread which is often charged in lieu of a direct commission. The bid-ask spread method is when the broker keeps the difference between the ask price and the bid price. Sometimes a one-time fee applied by the broker known as a Commission / Round-turn. It is usually seen that commission free trading is convenient for the majority of people.

Deregulation in 1975 led to the creation of discount brokers, who charge lower commissions as compared to full service brokers. So now the market has traditional brokers as well as discount brokers. Full service stock brokers charge more because they often offer advice and can charge up to 2% commission on every trade done.

One will also come across ‘commission recaptures’ that are essentially provisions allowing investors to get back some of the resources that were borne as transaction costs or commissions on different investment activities.

There are many websites like pfgbestcommission, Yahoo finance etc that will give you an insight into how much commission a broker can charge from you.

Many Commission houses that are actually brokerage firms gain most of their revenue from fees charged for trading activities. They are also referred to as "wire house" and can be an individual or organization that solicit or accept orders to buy or sell futures contracts or options on futures in exchange of money or other asset. Apart from the commission / brokerage fees, some even charge clearing fees, exchange fees, software fees, etc.

Yogita Bali - About Author:
Author’s Bio: Yogita has penned down different write-ups on forex services.In this article she briefly describes many things concerning pfgbest commission .

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Investing Articles Subscribe to RSS

Join a Forex Affiliate Program with an Unambiguous Structure
Published by Thomas Lowell on February 3rd 2012 | Investing
At the present time, forex affiliate promotion has turned out to be reasonably popular amongst the m...
The Bouquet of Financial Solutions and Services by MMFSL
Published by Sam Jabba on January 5th 2012 | Investing
Money Matters Financial Services LTD. is a leading financial company that offers a wide range of ser...
Things that you should know about the uniform tax allowance
Published by Robert William on December 28th 2011 | Investing
There are many kinds of tax reliefs available from the government of the country. Here is a brief di...
The way forward for High Frequency Trading
Published by Nathan Donald on January 3rd 2012 | Investing
High frequency trading (HFT) can even be termed as algorithmic investments and / or maybe an automat...
How to Find a Best Forex Affiliate Program Efficiently
Published by Shannon Hill on February 16th 2012 | Investing
For somebody venturing into the highly competitive and specialised form of affiliate marketing, choo...
Know about advanced techniques which benefited the natural gas company
Published by Maxleon on June 21st 2012 | Investing
A number of independent companies have come up which have taken the help of latest technologies to e...
Uncomplicated route to earn commencing binary options trading
Published by Alvin Cook on March 14th 2012 | Investing
Binary options has become ultimate way to gain huge money in less time interval...
Forex Affiliates Program Becomes an Open Secret for Making Easy Money
Published by Andrew Simon on December 27th 2011 | Investing
The biggest money trading market of world has got a new dimension in the form of affiliates forex pr...
Acquire Tips and Tricks of Binary Options Trading
Published by Rill Bell on February 18th 2012 | Investing
Not all traders at the Forex will share the tips and tricks of binary options trading which can help...
Claiming tax relief – take the help of a tax advisor
Published by Robert William on November 30th 2011 | Investing
You can claim tax relief on the basis of having a work place uniform but to know the exact procedure...
Importance of Debt Negotiation Help Companies
Published by James Blee on March 6th 2012 | Investing
Companies providing debt negotiations help come very useful to people who are unable to pay their de...
Finding the number one Financial Marketing Agency
Published by Damien Burger on February 23rd 2012 | Investing
Commercial active service companies are usually rivaling eachother; now the promotion and marketing ...
Be Well Informed about Tax through Tax Advice UK and Advice on Tax
Published by Robert William on February 6th 2012 | Investing
It is necessary for every person who is working to be well informed about tax through Tax Advice UK ...
Charles Moni is a Respected Professional in the Financial Sector
Published by Mark Addison on January 31st 2012 | Investing
Charles Moni is a successful stock broker with extensive years of experience backing him. He founded...
How advantageous online trading account is?
Published by Alvin Cook on February 20th 2012 | Investing
Everything we do today includes use of internet which is desirable to gather high performance with e...
Be stress free by filing your taxes at the earliest
Published by Robert William on March 27th 2012 | Investing
Tax filing should be completed at an earlier date to avoid hassles. If you are facing problems with ...
Writing Service - Dangers of Pushing for Management
Published by HELEN WOLFE on February 17th 2012 | Investing
Writing Service through what has been called 'the great recession' now extending through the eu debt...
A Warning for Those with Unsecured Credit Card Debt
Published by James Blee on March 6th 2012 | Investing
Decreasing your expenses and increasing your income will help in speeding up the debt repayment proc...
Ways to Gain Market Advantage by Trading Cfds
Published by Joy Shiela on December 10th 2011 | Investing
Because of its versatility, trading cfds is one of the top options of speculators in the market toda...
What digital options are in stock market business?
Published by Alvin Cook on February 20th 2012 | Investing
Latest stock market strategy which provides huge gain in terms of large investors...
Opt for Currency Options with the Help of Forex Trading Signals
Published by Kelly Wagenheim on August 24th 2012 | Investing
Currency options give the right to contract holder, to buy (that is call option) or to sell (also kn...
Know how to stay updated with natural gas news on a regular basis
Published by Kevinpieter on August 22nd 2012 | Investing
Before taking investment decision, it is very important to know about the specific company profile. ...
Natural gas investments offer unique opportunity to earn lucrative returns over a period
Published by Mano Matthew on August 22nd 2012 | Investing
Natural gas prices have gone through quite a topsy-turvy phase. Since hitting the peak phase during ...
Singapore Company Registration: a Part of Starting New Business
Published by Andrews Thomas on August 22nd 2012 | Investing
Though Singapore company registration is one of the things, which a business entrepreneur needs to d...
Getting Idea of Fixed Income Products
Published by Fixedincome on August 20th 2012 | Investing
People get perplexed about the investment policies available in the market. They must have idea of t...
A great Agency for that Consolidation Associated with Debt That's Non Revenue
Published by Shyam Singh on August 18th 2012 | Investing
When you obtain a debt administration program via DMCC you'll be assigned an avowed Credit Counselor...