3.3.2.3 Commissions and Soft Dollars
With traditional, full-service brokers, the commission, or sales charge, is usually a percentage of the total cost of the trade, though some brokers may offer favorable rates to frequent traders. Online brokerage firms, on the other hand, usually charge a flat fee for each transaction, regardless of the value of the trade. The flat fee may have certain limits, however, such as the number of shares being traded at one time.
Commissions can vary considerably among firms. A discount brokerage provides only tr