What Are Brokerage Firms & Commissions?


What is a Brokerage Firm?

A Brokerage Firm is an establishment that consists of professionals who handle customer orders to buy or sell a stock or security. There are many of brokerage firms such as TD Ameritrade, Etrade, Interactive Brokers, LightSpeed, Speedtrader, Tradestation, just to name a few.

You must open a brokerage account through a brokerage firm in order to gain access to the stock market.

What is a Commission?

A commission is a fee that you must pay to a broker as a trader to execute the trade for you. There are a couple of different pricing structures when it comes to commissions. There are per share fee structures and per trade fee structures. It really just depends on the broker.

For more information on brokerage accounts check out this video: https://tradewithresolve.com/trading-essentials-what-is-a-brokerage-account/

If you need help with choosing a brokerage to fit your needs definitely check out this short video: https://tradewithresolve.com/how-to-choose-a-stock-broker/