Stock Brokers Commission

Does A Stock Brokers Commission Count Toward GDP?

New postby Andria » 28 Oct 2012, 18:45

Does a stock brokers commission count toward GDP?

I need the answer for my Economics class! Thanks!
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New postby Ronna » 28 Oct 2012, 18:45

That's a service. Do services count towards the GDP?
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How does commission work for stock brokers?

New postby Odell » 28 Oct 2012, 18:45

I trade through scottstrade and am very new to it. Say i buy 1,000 shares at 1.00 and sell at 2.00 do i need to pay a commision through scottstrade? if so how much? Do they automatically take it out?
is it just the 7$ per share sell?
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New postby Wilton » 28 Oct 2012, 18:46

If you bought 1000 shares at $1 dollar a share the total cost of the trade would be $1007 dollars. Commission gets added in to the cost on the buy side automatically.

If you sold your shares at $2 dollars a share the proceeds would be $2000-$7=$1993. Commission is deducted from the proceeds on the sale side automatically.

This is the way the IRS sees it as well. To the IRS you made $1993-$1007 and will have to pay taxes on the difference.
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What is the commission split for stock brokers and...

New postby Herbert » 28 Oct 2012, 18:46

What is the commission split for stock brokers and indepent agency?

I work for an indepent full service stock broker. I am a registered representative/financial advisor. what is the split I should be getting? 50-50 or more like 70-30?
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New postby Nam » 28 Oct 2012, 18:46

Every firm has their own payout schedules, so there is no set or average pay out schedule.
Schedules are also based on the markets used, and the type of accounts generating the commission.
I doubt if any firm would pay you 70%, be thankful for 35%
My reps were paid 50% of customer gross after fees (clearing & ticket cost).

No sure what you mean by independent agency If you have your own company, you may receive less than a 50-50 split.
If you're an independent financial advisor, you should be thankful for 25% of gross since there are supervisory concerns with such associations.
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Do stock brokers/financial planners earn more commission...

New postby Aleen » 28 Oct 2012, 18:46

Do stock brokers/financial planners earn more commission when they sell a certain stock?

If one goes to see a financial planner/stock broker that is commision based, is there a push to sell one particular stock? For example, let's say that I am interested in buying stock in General Mills, but Hershey has a higher commision structure for the broker, so they would push Hershey instead. The companies listed are just hypothetical, and the first that came into my head, since I am hungry.
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New postby Christal » 28 Oct 2012, 18:46

That depends.

A broker makes the same commission when buying or selling any particular stock, so he does not have a preferrence that is swayed by commission. That being said, the more you trade, the more he makes, so this might influence his relationship with you.

a financial planner, is paid by selling you stuff, by either a fee for time, or a sales commission, and a kickback from the product sold and trailing fees on the investment in the future.

their optimal return is based on you staying with their products long term, and adding more capital over time.
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STOCK EXCHANGE MEMBERSHIP: What's the difference...

New postby Sophia » 28 Oct 2012, 18:46

STOCK EXCHANGE MEMBERSHIP: What's the difference between commission brokers and floor brokers? STOCK EXCHANGE MEMBERSHIP: What's the difference between commission brokers and floor brokers?
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New postby Tennie » 28 Oct 2012, 18:46

A stock exchange membership is called a SEAT. A comission broker usually works in a financial firm itself and excutes trades of his/her clients. He gets commisions based on those trades.

A floor broker trades in the NYSE "pits" on behalf of a brokerage house. They get paid a salary.
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Stock broker commission?

New postby Anjanette » 28 Oct 2012, 18:46

How much commission should you pay a stock broker? mine is charging $50 per trade @ 3 a week.
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New postby Ramon » 28 Oct 2012, 18:46

Consider using an online brokerage firm such as Scottrade.
NO account maintenance, service, or inactivity fees.
$500.00 minimum to open an account.
$7.00 online trading commission for stock over $1.00 a share.


For comparison purposes:

Sharebuilders' real time online trading commission is $9.95.
T.D. Ameritrade's online trading commission is $9.99.
Schwab's standard online trading commission is $12.95.
E-Trade's standard online trading commission is $12.99.
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How much commission does a stock broker make?

New postby Emelda » 28 Oct 2012, 18:46

How much commission does a stock broker make? How much commission does a stock broker make?
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New postby Rosann » 28 Oct 2012, 18:46

It depends on the broker. Some charge more than others. Of course if you're a really good broker, you can get away with charging a higher rate!
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How to avoid stock broker commissions?

New postby Ethan » 28 Oct 2012, 18:46

How to avoid stock broker commissions?
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New postby Carmela » 28 Oct 2012, 18:46

There are ways to buy stock directly from a company, contact the company whose shares you want to own (att, Disney, etc). When you are dealing with a stock broker you are giving a commssion for the ability of the broker to acquire the shares for you. Online brokerages have the least commission because most all of the trades are handled by computers.
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