What is a stock trading commission?

Trade commission: Also called a stock trading fee, this is a brokerage fee that is charged when you buy or sell stocks. You may also pay commissions or fees for buying and selling other investments, like options or exchange-traded funds.

What is a broker's commission?

Commissions Brokers and investment advisors often charge clients commissions for using their services. These are also called trading fees. They basically pay for any investment advice or to execute orders on the sale or purchase of securities including stocks. commodities, options, or exchange-traded funds (ETFs).

Do brokerages charge commissions on stock and ETF trades?

Some brokerages charge commissions on stock and ETF trades, but these costs are currently on the decline. To avoid them, look for: Brokers that offer commission-free trading, including TD Ameritrade, Charles Schwab, E-Trade, Interactive Brokers and Robinhood.

Is zero the new normal for stock trading commissions?

As of late October 2019, TD Ameritrade, E*TRADE, Fidelity, and Bank of America have all eliminated traditional commissions -- at least to some degree. At this point it’s fair to say that zero is the new normal when it comes to stock trading commissions. How can brokers afford to do this? There are two basic parts to the answer to this question.