What are Brokerage Commissions?Brokerage commissions are fees you pay every time you make a trade. For example, when you buy 100 shares of XYZ stock at $50, it will cost you $5000.If your Broker charged $10 per trade your brokers’ commission for this transaction is $10. This means not only do you have to pay $5000 for the stocks you bought but an additional $10. Bringing your total cost to $5010. Hold on were not done just yet. Let us say that you hold onto this for a while. Now it is trading at $60 a share and you decide to sell it. You bought 100 shares, so you will get $6000 when you sell. However when you sell a stock you are making another transaction. This means you have to pay another $10. Now you only get $5990 when you sell. Minus the $5010 you bought it for and you made $980 or 19.6%. I know what you’re thinking, “I don’t like brokerage commissions.” Relax, they are not that bad. When you pay a fee it is normally minor and should not have a great impact on your account balance. That is of course, unless you are day trading. Also I have heard rumors of brokers charging 6% of the money you’re investing to buy a stock. Stay away from this type of service. You should be able to make trades that cost you less than .5% of what you’re putting into it. Be aware of these fees and use them to help you decide what broker you would pick. Since every broker charges a different commission rate it might be wise to choose the one that charges you the least. The more money you save the more you can invest. 
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