Info 1: fixed broker definition
Info 2: how fixed broker works
Info 3: fixed broker vs non fixed broker
Info 4: example of fixed broker
Opening information:
Fixed broker sentence breaks into two words fixed and broker, fixed means pre-determined or set it, Broker means commission maker.
Fixed broker means pre-determined commission maker,
so now let’s have a look what is a fixed broker, how the fixed broker works in the public market among all the Investor and speculator’s, and what is the difference between the fixed broker and non fixed broker, finally one example about fixed broker.
Info 1: fixed broker definition
Cure broking is one of the biggest brokerage firm, which offer great service for his consumers. Which that consumers are stock or public Investors of the market.
When compared to any other commission maker from buying and selling a stock securities in the stock exchange, cure broking helps the consumer charge very less and fixed amount for each Investors investment.
They would normally charged 30 dollars for each buying and selling of any kind of listed security in the public market.
However if the certain Investor would bought one share of stock from the public company worth 10 dollars, the brokerage would charge of 30 dollars for purchasing such one shares.
At the same time, when the same investor would bought millions of shares at the 10 dollars, they would also only a charge a 30 dollars in the trading.
So no matter what, how much does the size of the order would be in the brokerage, the commission amount remains pre-determined cost.
Here the money which are charged of 30 dollars for any amount purchased of Securities in the public market from the brokerage side leads the such commission maker as a fixed broker. So let’s dive into know how the fixed brokers works in the Securities market.
Info 2: how fixed broker works
Fixed broker doesn’t represent any specific person or firm as fixed broker, instead it’s a concept of identity of one types of activities by charging a predetermined fees as a commission for buying and selling a Securities.
Therefore any of the company of brokerage would had a charge of fixed fees for purchasing one kind of security, then such commission maker are called as fixed broker.
Whenever one fixed broker reduce or raise their fees of commission for any of reason, then such broker are not consider as a fixed broker.
However person stock broker or brokerage firm which allows stock Investors to purchase the business Ownership of equity for pre-determined commission but not based on the any sizable position or shares limits or by the percentage. Then such brokerage firm are known to be as a fixed broker or brokerage.
Next the bonds investors who purchased the security of debt instruments using the brokerage account for a commission, if such commission is imposed for determined set amount without any single amount of discount or offer
In any size difference in fees, then such brokerage is demonstrate fixed brokerages.
On the other hand, firm who are offer the commodities for the public Investors by based on the non discount amount or fees, but with marked commission without caring about the size of order then they are elaborate as fixed broker.
Then the security of derivatives which are traded by speculators of the public market using the different kind of contract by paying a fixed fees for the certain broker makes them fixed brokerage.
And the forex Securities of Currencies which are trade by the forex trader who bought and sold them by charging the fixed money, then such forex broker are illustrated as fixed broker.
Therefore anyone or institution which are involved the pre-determined charges or fees, then they are called as fixed broker.
Most of the people’s confuse the fixed broker and non fixed broker, so let’s jump into know the key difference in it anyway.
Info 3: fixed broker vs non fixed broker.
The difference between the fixed broker and non fixed broker are, the non fixed broker also a broker of public market where involved in varieties of Securities in the market, what makes them apart from the fixed broker is non pre-determined charges.
On the other side, fixed broker also a stock broker like a non fixed stock broker ,but they won’t involved in the activities of charging a set amount for a commission, it’s what makes them as a non fixed broker.
So the key difference between the fixed charges and non fixed charges are pre-determination, to make you more clear about the fixed broker let’s seen into one clear example below.
Info 4: example of fixed broker
Say the company Y are the brokerage firm, where offer the marked fees for all the purchase of security, which means if certain Investors bought the 1 shares or 1 million shares the commission is 100 dollars.
And the other company F are also a brokerage firm, which charge commission of 3 percent for all the purchased securities.
if the Investor purchase 100 dollars security, the commission is 3 dollars or if purchase 1000 dollars security the commission is a 30 dollars. Here the company Y shows as fixed broker and company F as a non fixed broker firm.