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Investing & the Stock Market vocabulary · Orders & Trading

Commission

Meaning in investing & the stock market, with examples

/kəˈmɪʃn/nounCommon term

In investing & the stock market, commission means: A fee that a broker charges for carrying out a buy or sell order, either a fixed amount per trade or a percentage of the trade's value.

In Turkish: komisyon, aracılık komisyonu, işlem ücreti

How it is used

Brokers charge commission; investors pay or negotiate it. Many platforms now advertise commission-free trading, but costs can still appear in the bid-ask spread, currency conversion or other fees. Frequent traders watch commissions closely because they add up.

Example sentences

  1. My broker charges a commission of 0.1 percent on each trade.

  2. Commission-free apps still make money from spreads and other services.

Common collocations

  • charge a commission
  • commission-free trading
  • commission rate
  • low commission
  • pay commission
  • brokerA person or firm that buys and sells shares and other securities for clients, usually in exchange for a fee called a commission.
  • brokerage accountAn account at a broker that holds your cash and investments and lets you buy and sell shares, bonds, funds and other securities.
  • bid-ask spreadThe difference between the highest price a buyer is offering (the bid) and the lowest price a seller will accept (the ask) for a security at a given moment.
  • expense ratioThe yearly cost of running a fund, shown as a percentage of the money invested in it. It is taken from the fund's assets, so it reduces investors' returns.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Orders & Trading

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This page explains English vocabulary for learners. It is not financial advice.