A commission is a fee charged by a broker or financial intermediary for executing trades on behalf of a client. It can be a fixed amount per trade, a percentage of the trade value, or charged per lot/contract, and it represents one of the primary transaction costs for traders. Many modern brokers have moved toward zero-commission models for equities, instead earning revenue through payment for order flow and wider spreads.
Example
“After switching to a zero-commission broker, his active trading costs dropped significantly, improving his overall returns.”