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Discount brokers are able to offer a cheaper commission and turn a profit by dealing with the basics only executing the transaction and not offering advice on investing and buying, as other types of stock brokers do. Discount stock brokers typically receive their commission from fund managers, and not directly from the investors. Because of the reduced amount of time spent per customer, due to it being an execution only type job, a discount broker can charge small fees and still turn a decent profit from their work.
What else can I help you with?
How does forex trading broker profit?
It depends which type of broker you are talking about. Some will profit by trading against you since over 90% of people fail, some profit on the spread and some have a commission for each trade. To better understand the types of broker you can search for the following: Market makers / Bucket Shops STP / Straight Through Processing ECN / Electronic Communication Network You can understand the hierarchy better using the related link I have added.
How do you make a commission?
profit?
What is the role and function of stock broker?
A stockbroker is a person or company who buys and sells stocks on behalf of another person or company. Stockbrokers make a profit by charging a commission off of the purchase and sale of stocks. A stockbrokers profit can vary, they may be very rich or go bankrupt
What is the formulae of cp if profit and discount percent is given?
if profit , discount % and cost price is given write the formulae to fine cost price
What commission is payable on transactions?
in the trading and profit and loss account where do i put commission payable
A man bought ABC stock at 19.65 per share and it sold at 23.25 per share?
Smart guy! Maybe he will invest money for me. His profit per share = 23.25 - 19.65 = $3.60. Of course, part of that profit will go to his stock broker as a commission. And, he should keep part of that profit aside to pay the tax on his capital gain next April 15th.
What is the difference between discount and markdown?
Discount fluctuates and it has various types like Frequent shopper discount, senior citizen discount, membership discount. Though discount is being given to the customer, Retailer gets cheaper profit always. MarkDown is gradual and it is mostly used to sell the old inventory items and any items which retailer feels occupying the space for long time. MarkDown is more applicable for seasonal items, as the necessity decreases when the season is finished. When retailer sells in MarkDown price, it will be a loss but it helps them to bring in new items where they can get some profit. In Simple layman language, MarkUP price = Purchased price + profit price MarkDown price = Purchased price - loss price
What is the entry for commission received in the trading profit and loss account?
Commission received will appear on the credit
How is the size of a commission determined in car selling jobs?
The size of a commission for car salesmen is calculated by the profit of the vehicle. The salesman gets a percentage of the profit of the vehicle.
What are the key differences between a trader and a stock broker?
The key difference between a trader and a stock broker is that a trader buys and sells securities for their own account to make a profit, while a stock broker facilitates trades on behalf of clients and earns a commission for their services. Traders take on more risk and are responsible for their own profits and losses, while stock brokers provide advice and execute trades for clients.
What is the definition of commission used in math?
to earn profit
Is the discount received added gross profit as income?
yup it is as it is an income so we add it in the gross profit....
