Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

A broker charge is a fee paid to an agent or company for facilitating a transaction between a buyer and a seller. It might be a charge for sales or negotiation services, or for providing advice about the transaction.

Broker charge definition

A broker charge is a fee paid to an agent or company for facilitating a transaction between a buyer and a seller. It might be a charge for sales or negotiation services, or for providing advice about the transaction.

A broker charge will usually be based either on a percentage of the overall transaction value or a flat fee.

For example, if you want to buy shares in a FTSE-listed company, your broker may charge you 0.1% of the value of the transaction, subject to a minimum flat fee of £10.

Example 1: You decide to buy 8000 shares of stock ABC, which has a share price of £1 per share. The broker charge is calculated like this:

8000 x £1 = £8000 notional value

£8000 x 0.1% = £8 

As this is lower than the minimum fee, you will be charged £10.

Example 2: You choose to buy 10,000 shares of stock XYZ, which has a share price of £3 per share. Here’s how the charge works:

10,000 x £3 = £30,000 notional value

£30,000 x 0.1% = £30

As this is more than the minimum fee, you will be charged £30.

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