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What is a trade commission, how much should it be?

Most online companies charge a commission for online trading.Some charge a commission per trade, others per share.You can choose what is best for you.

Some companies will even give discounts if you use their software program to aid in your trading.
They will give you a price quote with software and without.

How much should a trade commission be?The answer is up to you, the consumer.Bank of America recently launched a no fee for trade commission program.Others have done so in the past and have not been popular, while others are joining Bank of America and also offering no fees.

Along with these commissions for trade, there usually are a lot of other little fees tied in like routing charges.I suppose any company offering a service deserves a little commission, but do they have to be sneaky about it and add other fees?

Some of the software programs out there available for tracking the stock market are amazing.If you can have one of these programs and pay a small commission to do the trades on them, then I would think in the long run you are making money by being able to use their tools and keep ahead on the market.

The more people keep using companies that charge a commission, the more likely the company is to keep things the way they are.If however they start to lose business because people are jumping over to these other companies who are offering no fees, then they may choose to lose their fee also.

The best way you choose whether or not a commission for trade is fair or not, is to just do some research on it.Are the companies who charge no fee, really just as good as the ones who do?If not, are the benefits you would be losing worth it to you?If you can still do your business without having some of the more advanced trading options, than why pay the commission?

The commission on trade, especially per share, is very small.Less than a half of a cent sometimes.The only way it would really make that big of a difference is if you do a lot of share trading.Otherwise, you probably wont even miss the little amount of money that is taken out.The only way to be sure and to keep track of your money, is to check and see what the company you are working with charges for your individual stock.Most of the time the prices will vary from different companies trade shares.

If you are looking to have some advantages online, and don't mind paying a commission, it may be worth it to see if there is a company that just charges one set commission on everything.That way it won't be so difficult to try and figure out how much commission they got for that share, or how much they got for that trade.

If you can't find the research you are looking for online, you can always just ask other traders what they do.The best way to learn if something is working well or not is to ask someone else who has been using it.

Companies eventually have to change around their ways with supply and demand. In the long run, it will be the majority of the consumers who will decide if commission fees for trade are fair and if so how much they should be set at.If you feel strongly about not paying any fees, my advice is to join one of those companies, take note of the benefits and then spread the word to other consumers.



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