Do all brokers charge commissions on all trades?
- Thread starter msincome
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Re: Commissions
The short answer is no.
However, a more meaningful answer might be possible if you narrow the scope of your question, which, as it stands, is very broad. (i.e. What types of trades? Equities or market derivatives? If market derivatives, which ones? Opening trades, closing trades or roundtrip? etc.)
The short answer is no.
However, a more meaningful answer might be possible if you narrow the scope of your question, which, as it stands, is very broad. (i.e. What types of trades? Equities or market derivatives? If market derivatives, which ones? Opening trades, closing trades or roundtrip? etc.)
MichaelD
Not fooled by randomness
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Re: Commissions
All brokers make money on every trade you execute, one way or another.
i.e. directly via commission or indirectly via market spread
All brokers make money on every trade you execute, one way or another.
i.e. directly via commission or indirectly via market spread
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You might find our blog on brokers helpful: https://www.aussiestockforums.com/forums/entry.php?b=933
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It depends on the model of broker. Market Makers, who are brokers that "Make the Market" by taking the opposite side of your trade (which can pose conflict of interest problems) will pretty much never charge commission, their money comes from the spread (difference between buy and sell price) as well as from other methods employed during your trade if they are dodgy! STP brokers will sometimes charge commission, particularly if they are DMA (direct market access), however sometimes they do not charge commission and instead make their money from the spread. ECN/STP brokers will ALWAYS charge commission as your orders are filled at market, not by the broker. Although they charge commission, their spreads are a lot tighter so it does not necessarily mean you will be paying more money with ECN or other commission charging brokers. ECN is definitely the way to go in my opinion as it removes any conflict of interest between the broker and trader and is much more transparent.
