The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about the difference between fee-based and commission-based trading costs. Really, the slight difference in variation here is really, how the commission or the fee is charged. When you look at most trading costs, they’re usually a fee-based trading cost which means that there’s a fixed fee associated with performing that transaction, but then you also have this commission or this variable element that layers on top of that which could be variable depending on how much of that particular security you’re trading. A good example of this might be a different brokerage that’s out there that charges not only a ticket charge which is a fee-based commission, ticket to actually just enter into the transaction regardless of how much or the quantity that you’re trading and they also might charge on top of that, a small notional amount for the quantity. They might be $5 per trade plus $.5 per contr