Every service we avail has a cost attached to it; the verbatim may differ, as some refer as commission, fees, consultation or other forms, while the service is for giving their expert opinion, in the financial sector. Brokers come under the wide network of highly data oriented facts that rule the trading fraternity. Every online broker has a unique way to strategize trades that will help the traders to place trades and make high profits, and give a small percentage of the profit to the broker as a fees or commission from the winning trades.
The fees charged is different between different trading platform, the nature of trading and the profit earned from the investment, it all depends upon how many times you have the winning trade in an average day trading day.
Types of Fees Charged
- A per share trade fees is charged depending upon the number of times the trading is executed, this becomes a cost laden trade for a new trader who is looking to make quick money, without shelling out a major part of the profit in as fees
- a flat fees is charged for a particular number of trades that has been executed from the tool, every click,no matter how many trades take place, this fees is generally charged on a flat basis, that most of the brokers use
- broker assisted fees is changed when the trader is not having internet or live access to the trades, over the phone the brokers give all the inputs, suggestions about how to go about a particular stock buy or sell, and also the interactive voice system helps the trader to finalize and execute a trade, without any human intervention form a small percentage as fees
- while trading on stocks and other instruments are on a daily basis, the mutual fund markets are for a longer period that go with the commission payable to the broker, the shorter time period, like less than 90 days funds invested have a no commission trade that is both effective and simple
- option trading fees is the normal trade fees per trade including the contract fees that exclusively engages the broker to list along with a particular client for a set number of trades or a time period, usually the base rate of the broker fees is finalized and is a common charge all along by different brokers
As the brokers work independently handling different clients as they registered online, the number of clients they service is wide, and keeping differential fees structure could pull a client away.