Low Commission Broker

Written by Michael Federico
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Most brokers take a percentage of every trade made by one of their clients. Like an actor paying an agent, when a client gets paid for the sale of a stock or other asset, some of that money is going to the broker. Unfortunately, these commissions are usually accompanied by trading fees. This means that with every trade, successful or not, the broker takes a cut.

Commission rates vary even with one broker. The number of orders a person places within a certain period of time will generally affect the commission rate. The size of each trade will also usually have an impact on what percentage a broker will take. Some brokers are worth their high commission fees. They have a history of making a lot of money for their clients, so their fees are warranted. However, most traders do not deal with enough money or assets to justify paying high commissions. By the time the trade is over, their gains are quickly minimized.

Comparing Low Commission Brokers

The majority of low commission brokers actually exist online. Trading websites usually offer low cost standard trades. However, more sites have begun to offer their clients broker-assisted trades, as well.

Finding an online low commission broker is a great place for a person who is new to the stock market to start. Small trades can actually pay off, and a person can get a feel for how things work without paying a lot of money to brokers. Even heavy traders can benefit from a low cost broker, as many of the brokers are highly qualified and experienced.

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hey great post! this has been

hey great post! this has been really helpful!

Courtney H.
Commission Broker