What is commission?
Brokers and trading platforms often charge clients a fee for using their services – these are commonly referred to as commission or trading fees. Trading platforms charge commission to execute orders for the buying and selling of stocks on your behalf. Commission charges vary from firm to firm so it's important to verify each trading platform’s fee schedules before buying stocks. Other fees (such as custody and FX fees) may apply.
See below for a non-exhaustive list of different fees used by various brokers:
- Commission (trading fee) – Usually charged for execution of orders
- Custody/management fee – Typically charged for keeping assets administered
- FX fee – Charged when converting between different currencies when trading
- Deposit fee – Typically charged as a percentage of the funds deposited for investment
- Withdrawal fee – Typically charged as a percentage of the amount withdrawn from a customer’s investment account
- Inactivity fee – A fee charged when a customer has not traded for a predefined time period
You can find out more about Revolut’s fee schedule here.