what is a brokerage fee
A brokerage fee is the fee charged by a brokerage company to facilitate the transactions between buyers and sellers.There are two main types of brokerage fees: a flat fee, and a fee based on a percentage of the transaction.For example, a brokerage company may charge a flat fee of $7 for stocks priced at $1 or above. For stocks under $1, the brokerage company may charge a flat fee of $7 plus 0.5% of the transaction.There is usually an extra brokerage fee charged for options trading. For example, a brokerage company may charge a flat fee of $7 plus $1.25 per contract for option orders.here are two main types of brokerage fees: a flat fee, and a fee based on a percentage of the transaction. For example, a brokerage company may charge a flat fee of $7 for stocks priced at $1 or above. For stocks under $1, the brokerage company may charge a flat fee of $7 plus 0.5% of the transaction.