Brokerage Fee

A fee charged by an agent, or agent's company to facilitate transactions between buyers and sellers. The brokerage fee is charged for services such as negotiations, sales, purchases, delivery or advice on the transaction.

There are many types of brokerage fees added in areas such as insurance, realty, delivery services or stocks. Brokerage fees will usually be based on a either a percentage of the transaction or a flat fee. They can also be a combination of the two.

Here is an example of the fee breakdown from a typical stock brokerage:

Stock Price Over $2: $28 flat rate up to 999 shares, 3 cents per share over 999 shares.

Stock Price $2 and Under: 1.4% of principal trade with a minimum of $28 charged.


Investment dictionary. . 2012.

Look at other dictionaries:

  • brokerage fee — A fee charged by a broker for executing a transaction. Chicago Board of Trade glossary A fee charged by a broker for executing a transaction. Exchange Handbook Glossary …   Financial and business terms

  • brokerage — [[t]bro͟ʊkərɪʤ[/t]] brokerages 1) N COUNT: usu N n A brokerage or a brokerage firm is a company of brokers. ...Japan s four biggest brokerages. 2) N UNCOUNT: usu N n A brokerage fee or commission is the money charged by a broker for his or her… …   English dictionary

  • brokerage — bro·ker·age / brō kə rij/ n 1: the business or establishment of a broker 2: a broker s fee or commission Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • fee — n [Middle English, fief, from Old French fé fief, ultimately from a Germanic word akin to Old High German fehu cattle] 1: an inheritable freehold estate in real property; esp: fee simple compare leasehold; life estate at estate …   Law dictionary

  • Brokerage — Bro ker*age, n. 1. The business or employment of a broker. Burke. [1913 Webster] 2. The fee, reward, or commission, given or changed for transacting business as a broker. [1913 Webster] …   The Collaborative International Dictionary of English

  • brokerage — [brō′kər ij] n. 1. the business or office of a broker 2. a broker s fee or commission …   English World dictionary

  • brokerage — The fee paid to a floor broker for executing orders. May be a flat amount or a percentage; also referred to as a commission. Chicago Mercantile Exchange Glossary Commission charges payable on securities transactions. Dresdner Kleinwort… …   Financial and business terms

  • brokerage — Synonyms and related words: admission, admission fee, agency, anchorage, barter, bartering, boiler room, brokerage house, brokerage office, bucket shop, buying and selling, carfare, cellarage, charge, charges, cover charge, dealing, demand,… …   Moby Thesaurus

  • Brokerage Company — A business whose main responsibility is to be an intermediary that puts buyers and sellers together in order to facilitate a transaction. Brokerage companies are compensated via commission after the transaction has been successfully completed.… …   Investment dictionary

  • fee — Synonyms and related words: Trinkgeld, account, admission, admission fee, allowance, anchorage, assessment, bill, blackmail, blood money, bonus, bounty, bribe, brokerage, carfare, cellarage, charge, charges, compensate, consideration, copyhold,… …   Moby Thesaurus

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