What is a stock commission fee in trading?

Asked 3 years ago

What does it mean when the brokers say they ask for a percentage of commission fees? How does it work?

Andrew Moran

Wednesday, October 06, 2021

When you buy and sell stocks, you pay a commission (fee) to the brokerage or investment firm. Commissions can eat into your return on investment and increase your average share price.
In most cases, these companies will charge you either per share or per trade.
If you use a commission-free platform, such as Robinhood or Wealthsimple, you do not pay for these fees.