Transaction fees

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A transaction fee is the charge an intermediary, such as a broker-dealer or a bank, assesses for assisting in the sale or purchase of a security or investment product.[1]

Transaction fees for buying securities or products are usually called sales loads or commission and are charged by brokers on almost all sales, either separately or combined.

The SEC imposes a small fee, often only a few cents, not on individual investors but on self-regulatory organizations like security exchanges, which pass some of this cost onto brokers.[2] Brokers in turn shift the fee onto their customers.