Commission Definition
The fee paid to a broker for executing a trade. Discount brokers charge lower commissions when compared to full service brokers, but full service brokers often offer advice, research and stock market analysis that is not typically available to client’s of a discount brokerage.
Investor Insight – Deregulation in the U.S. securities industry during the 1970s led to the emergence of discount brokers. With the rise of the Internet, online discount brokers have attracted millions of customers, due to low commissions and the ability to place orders online.