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What is Commission in Forex Trading? 2022


 We will explain the meaning of Commission and Fees and their differences.

What is Commission in Forex Trading? 2022

The commission is a service fee assessed by a broker or advisor to provide investment advice or handle purchases and securities sales for a client.

The amount paid to the brokerage house by the buyer of shares in a mutual fund or a limited liability company (limited partnership) that charges a fee for selling securities or shares in a limited liability company (limited partnership).

As a rule, the sale fee in a mutual fund starts from 4.5-5.0% of the invested capital and decreases as the volume of investments increases. The commission fee for selling a limited liability company can be even higher - up to 10%.

In exchange for paying the commission fee, investors have the right to receive recommendations from the broker as to which fund or company the investment will be most profitable for them. 

A fund that does not charge a commission fee for the sale is called a no-load fund (a mutual investment fund whose shares are sold without a brokerage commission).

Let’s see what is a "commission fee" in other dictionaries:

1. commission fee:-

 it is a fee charged for intermediary services. As in Financial Dictionary.

2. Commission fee:- 

it is in connection with the redemption of securities: fees charged by mutual investment funds when redeeming shares.

Fees are charged by mutual investment funds when redeeming shares. For example, a 2% commission fee (also called a one-time commission fee) on the sale of shares worth $1,000 means that the investor will be paid $980.

3. Commission fee:- 

commission fee remuneration paid by the committee to the commission agent for performing commercial operations on his behalf. The amount of remuneration can be set as a percentage of the amount or a difference between the price.

4. The exchange fee (commission fee) 

is a mandatory fee paid by the Members of the Section and used to finance the current expenses of the exchange for the organization and maintenance of trading in fixed-term instruments in the Section. The fee amount is stated in the Specification of the relevant urgent.

5.  A one—time commission fee 

is the amount that an investor pays if he withdraws previously invested funds. It is most often used in mutual and pension funds and annuities (annuity). This fee was introduced in order to prevent the withdrawal of funds.

6. A commission fee

is a fee in the form of a fixed fee, which is charged by a state organization for intermediary services.

7. Fee for acceptance commission:-

it is the fee charged for acceptance of the expenditure. And this meaning is related to accounting.

8. Surcharge:- (fee charged on sale)

The sale fee paid by an investor who purchases shares in a mutual fund with a load that charges a fee when selling shares or when buying an annuity contract. The fee is usually charged upon purchase.