Brokerage: Difference between revisions
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{{a|g|}}The fees one pays a broker to buy or sell securities for one, or to a swap dealer or enter in to derivatives having an equivalent effect. the strict difference is that cash brokerage is usually a form of [[commission]] — payable to an [[agent]] for brokering a transaction between two principals, whereas synthetic brokerage is a fee paid to ones principal, the swap counterparty and is not a [[commission]] in that pure sense. | {{a|g|}}The fees one pays a [[broker]] to buy or sell securities for one, or to a [[swap dealer]] or enter in to derivatives having an equivalent effect. the strict difference is that cash brokerage is usually a form of [[commission]] — payable to an [[agent]] for brokering a transaction between two principals, whereas synthetic brokerage is a fee paid to ones principal, the swap counterparty and is not a [[commission]] in that pure sense. | ||
But, unless you are in the habit of inviting pedants to dinner, the distinction is a fine one indeed | But, unless you are in the habit of inviting pedants to dinner, the distinction is a fine one indeed | ||
{{sa}} | |||
*[[Principal]] and [[agent]] | |||
*[[Broker]] and [[dealer]] and that gruesome hybrid, the [[broker-dealer]] | |||
Revision as of 15:33, 28 September 2020
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The fees one pays a broker to buy or sell securities for one, or to a swap dealer or enter in to derivatives having an equivalent effect. the strict difference is that cash brokerage is usually a form of commission — payable to an agent for brokering a transaction between two principals, whereas synthetic brokerage is a fee paid to ones principal, the swap counterparty and is not a commission in that pure sense.
But, unless you are in the habit of inviting pedants to dinner, the distinction is a fine one indeed
See also
- Principal and agent
- Broker and dealer and that gruesome hybrid, the broker-dealer