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Commission

The broker's own charge for executing a trade, quoted per share, per contract, per trade or as a percentage, and separate from exchange and regulatory fees.

Zero-commission does not mean zero cost. It usually means the revenue has moved to payment-for-order-flow, wider effective spreads, margin interest or securities lending — costs that are real but invisible on the confirmation.

Compare schedules on total cost per round trip at your actual size, including exchange-fees, regulatory-fees and any data charges. Per-share plans favour high-priced stocks; flat plans favour large share counts.

Example: 400 round trips a month of 500 shares. A $0.005 per share plan with a $1 minimum costs 400 x 2 x $2.50 = $2,000. A flat $4.95 per trade costs $3,960. A zero-commission broker costs nothing visible but delivers $0.0015 a share less price-improvement — about $600 a month, hidden inside the fills.

Related: exchange-fee, regulatory-fee, payment-for-order-flow, price-improvement

Educational only, not advice. Spotted an error? Post in Site Feedback.