Investing term
What is Commission?
The per-trade fee some brokers charge to execute an order.
A commission is a per-trade fee a broker charges to execute your order. Once standard, commissions on stocks and ETFs have dropped to zero at many major brokers, but they still appear on options, futures, and some funds. Even small commissions matter for frequent traders, because each one is a guaranteed cost you pay whether the trade works out or not.
For example
A $5 commission on a $200 trade is a 2.5% cost before the investment does anything — trivial on a large order, punishing on a small one.
Commission is taught hands-on in Stage 7 — Brokers, Accounts & Getting Started.
See the lesson →