A fee charged by a broker or agent for his/her service in facilitating a transaction, such as the buying or selling of securities or real estate. In the case of securities trading, brokers can be split into two broad categories depending on the commissions they charge. Discount brokers charge relatively low commissions, but provide no services beyond executing trades. Full service brokers charge higher commissions, but provide research and investment advisory services.

Use commission in a sentence

Commission charged for a typical realtor is about 6% but competitive pressure due to the increase in licensed agents tends to bring down this rate.

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