Futures Trading Terms Glossary

BROKERAGE COMMISSION

Welcome to the RJO Futures trading terms glossary. Within this glossary, you will find an expansive list of trading terms covering commodity, option, and futures trading terminology. Bookmark this section as a quick reference for definitions of trading terms as you browse the Internet and our site for more information on futures and options trading within the financial and commodities markets.

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Brokerage Commission×

Brokerage Commission – also referred to as a brokerage fee, is the fee charged by a broker to a customer for executing a trade. While often referred to in the same breath, a commission and a fee are two totally different things. A brokerage commission is the money the broker makes when he or she places a trade or other transaction on behalf of the account owner. A brokerage fee on the other hand, is a flat rate the agency or clearing firm charges for the management of the account, this is usually a percentage of the account value. Many full-service brokerages collect a large percentage of their profit from commissions. Commission fees range widely from brokerage to brokerage, so it is important to find the one that works best for you.