Brokerage Fees
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| Whether you buy (and sell) funds or individual securities, the broker you use to execute your trades deserves a fee or commission for this service. In some cases, that fee is a percentage of the dollar amount transacted; in other cases, the fee might be a flat charge per trade; or it can be a combination, particularly for large trades. | ||
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Additional Comments:
Most fee-only advisors work for an independent firm under this model (meaning, they aren’t associated with any of the brokerage firms on Wall Street). Typically, they’ll have your assets kept at a brokerage firm acting as custodian (a firm that is legally responsible for holding and safekeeping your investments - Fidelity and Schwab are the largest players in this business).
The commissions to buy and sell securities on your behalf are also kept by the custodian. |
Related Terms: | ||
Broker-Dealer A firm engaged in the business of effecting securities and other transactions for the accounts of ... Online broker A brokerage firm that allows clients to trade over the Internet using Web-based trading platforms. ... Margin A deposit made by a trader with a clearinghouse to ensure that he/she will fulfill any ... | ||
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