Brokerage commission

Fee paid by investors to cover the intermediation function performed by brokers

When a security is bought or sold on the floor, the investor is required to pay a brokerage commission that is determined on the basis of the order size. In the case of shares, it is calculated as a percentage of the price of the stock; in the case of bonds, it is specified as a percentage of the par value of the bond. The fee is charged by the institution responsible for executing and settling the order.

Brokerage fees are standardised and stipulated in the fee schedule of the stock exchange. In the Official Market, the brokerage fee for exchange brokers comes to 0.08 per cent of the price of a stock, warrant or subscription right, but in all cases at least €0.75. For stocks in the DAX index, the brokerage fee is 0.04 per cent. For bonds, the fees are between 0.0015 and 0.075 per cent, depending on the transaction.

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