Stock Trading Commissions

Stock Trading Commissions Definition

The fee paid to a broker to execute a trade, that is, to buy or sell securities or property as an agent. The broker's fee may be negotiable and based on number of shares, bonds, options and/or their dollar value.

In 1975 deregulation led to the creation of discount brokers, who charge lower commissions than full service brokers. Full service brokers offer advice and usually have a full staff of analysts who follow specific industries. Discount brokers simply execute a client's order -- and usually do not offer an opinion on a stock.

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