What is Commission ?

A commission is a fee charged by a broker to execute transactions in a trading account.

When you place a trade order to buy or sell stocks, bonds, exchange-traded funds, options or other securities in a brokerage account, the commission is the fee the brokerage charges for its role in finishing the process. Trading commissions are only one of the varied fees brokerages charge to create profits on the services they supply.

How to calculate rate of Commission ?

You can understand the workings of a Commission calculator with this formula.

Commission = SalePrice x CommissionRate
Using this relation, we can also find sale price if we know commission and commission rate.
SalePrice = Commission / CommissionRate

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