Transaction fees

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.

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. Brokers in turn shift the fee onto their customers.