Commission Definition
Learn the definition of commission and other ETF terminology from the etf.com glossary.
Learn more about Commissions
While commission-free ETF trading has become prevalent, understanding the concept of commissions remains essential. In ETFs, a commission refers to the fee paid to a broker for buying or selling fund shares. Though many brokers now offer commission-free trading, investors should remain vigilant about potential transaction costs, particularly in scenarios where specific conditions, such as minimum holding periods or other restrictions, may apply. Comprehensive awareness of commission structures empowers investors to make informed decisions regarding the cost implications of executing trades and contributes to a more transparent and efficient ETF trading environment.