What is the difference between a brokerage fee and a commission?

Asked 5 years ago

Hi, I want to trade, but I am not sure I understand the broker's stock trading fees. Why do they charge a brokerage fee and still take a commission from your profit gained? What's the difference between the two? Also, how is the commission fee percentage calculated?

Andrew Moran

Thursday, August 12, 2021

In stock market trading, brokerage fees and commissions are generally the same thing.
You pay a fee for buying and selling stocks. You could pay a commission of as much as $30 per trade, which is why the zero-commission trading realm has become so popular in recent years.
Commissions or brokerage fees eat into your returns on investments or increase your average share price.