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.
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