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  2. Glossary
  3. Commission
GlossaryBrokers & Accounts

Commission

A fee a broker charges for executing a trade. Many brokers now offer commission-free trading on some products, earning instead from spreads, financing or payment for order flow.

Appears in these guides

  • CommissionsBrokers & Accounts
  • Choosing A BrokerBrokers & Accounts
  • ETFs vs Mutual FundsETFs & Index Funds
  • How Brokers Make MoneyBrokers & Accounts
  • Investing vs TradingGetting Started
  • Long Condors and the Reverse Iron CondorOptions

Related terms

AskBidBrokerBuying PowerCash AccountFractional SharesISALeverageLimit OrderMargin

Related lessons

beginnerBrokers & Accounts

Cash Accounts

The simple, sensible default brokerage account: what a cash account is, how settlement and settled funds work, why it carries no borrowing risk, what happens to uninvested cash, and why it suits almost every beginner.

beginnerBrokers & Accounts

401(k)

The US workplace retirement plan: what a 401(k) is, how pre-tax (and Roth) contributions work, why an employer match is free money to claim first, how tax-deferred growth compounds, contribution limits, vesting, and the rules around accessing the money.

Ironclad Research provides educational content only. Nothing on this platform is financial advice, a recommendation, or an offer to buy or sell any security. Always do your own research and consider professional advice before making financial decisions.