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A
service charge assessed by an agent in return for arranging the purchase
or sale of a security or real estate. The commission must be fair
and reasonable, considering all the relevant factors of the transaction.
Commissions vary widely from broker to broker.
For real estate transactions the commission is usually a percentage
of the price paid for the home.
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The brokerage with the lowest commissions is not necessarily the best one, you get what you pay for. Discount brokerages offer no advice, which can prove to be troublesome for many rookie investors. Meanwhile full-service brokerages usually offer a more personalized service with analyst advice…but commissions are definitely higher.
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