Brokerage

From The Jolly Contrarian
Revision as of 15:32, 28 September 2020 by Amwelladmin (talk | contribs) (Created page with "{{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...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search
The Jolly Contrarian’s Glossary
The snippy guide to financial services lingo.™
Index — Click the ᐅ to expand:
Tell me more
Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

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