#702 - Do You Pay Commission When You Buy And Sell A Stock?

The "Daily Call" From Option Alpha

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be answering the question, “Do you pay commission when you buy and sell a stock?” The short answer to this is you generally pay a commission with most brokers although there are some brokers now who are starting to not only remove the fees that you would pay for equity including stock, but also, there’s many brokers like Robinhood now that are starting to go commission free. It does depend on the broker. Some brokers like TD Ameritrade typically charge a very small ticket charge plus a per share charge or a flat fee. It depends on the brokerage pricing structure. Other brokers are now also rolling out commission free ETFs and commission free mutual funds or index funds, so it really depends not only on the broker, but also on the underlying products.

Generally though, most brokerages as a mass right now do charge a commission for getting into, buying and selling stock although as we’ve previously said, the entire industry in our opinion is gravitating toward zeros. There’s going to be a raise to the bottom. All brokers in the future will not charge any commission for buying or selling stock. It will be just a regular transaction that’s commission free with all the new technology and development that’s coming up, so I encourage you to pick and choose your broker and the technology you want to use wisely because eventually, commissions will go away. They are a big important component now and you should look at them and in the future, they’re not going to be here anymore. Hopefully this helps out. As always, if you guys enjoyed this or have any questions, let us know and never forget, your life should have options, so don’t just trade, trade with a purpose because options give you freedom. Until next time, happy trading.