D. JewelAssistant Manager, MA in English, California
Assistant Manager, MA in English, California
Answered on Oct 16, 2019
The majority of these charges are paid to brokers. And the amount you are most likely to be charged depends on the type of stock you are willing to buy. Brokers are like middlemen or mediators between buyers and sellers. These people help both buyers and sellers to get the needed stocks they want. So, as they are discharging this duty, you will be required to pay some charges. Let us look at a few of those charges you are more likely to pay. There is something called Brokerage.
This simply refers to the commission you pay to brokers for whatever service they are offering to you. This is not fixed for all brokers; what you pay as charges varies from one broker to another. There are also Transaction Charges. Transaction charges deal with both the Exchange Turnover Charges and the Clearing Charges. This is paid to the broker. However, there are other taxes and fees which you will be asked to pay.
The charges you pay when purchasing are stock will depend on how you bought the stock. For example, if you purchase the stock through a broker, you will be required to pay a fee called a brokerage fee. These fees will sometimes depend on the total dollar amount of the stock you are purchasing and they are typically a percentage. The fees help to pay the broker’s commission and the brokerage firm’s costs to research stocks, communicate via newsletters and more.
Some brokers may offer flat monthly or per trade fees and some will go as far as charging you for paper statements. There may also be other fees, taxes, and transactions charges.