# Broker's Fee: Is This Reasonable? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [April 28, 2015, 1:35am UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691 "2015-04-28T01:35:40Z")\ **Posts on this page:** 13\ **Page:** 1
**Author:** ![Jinx](https://avatars.discourse-cdn.com/v4/letter/j/c6cbf5/32.png) [@Jinx](https://boards.straightdope.com/u/Jinx)\ **Post date:** [April 28, 2015, 1:35am UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/1 "2015-04-28T01:35:40Z")
Is it reasonable for a broker to take 50% of sales of a stock? Seems ridiculously high to me, but I have no experience here. Is that the going rate in broker’s fees? ---
**Author:** ![Alley\_Dweller](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/alley_dweller/32/430_2.png) [@Alley\_Dweller](https://boards.straightdope.com/u/Alley_Dweller)\ **Post date:** [April 28, 2015, 1:38am UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/2 "2015-04-28T01:38:59Z")
> [@Jinx](#): > > Is it reasonable for a broker to take 50% of sales of a stock? Seems ridiculously high to me, but I have no experience here. Is that the going rate in broker’s fees? That depends. If you sold a hundred shares of a stock that trades at $.02 it would be rather cheap. Most brokers generally have a minimum fee per trade or charge extra for special services. That can make the percentage look very high. ---
**Author:** ![Jinx](https://avatars.discourse-cdn.com/v4/letter/j/c6cbf5/32.png) [@Jinx](https://boards.straightdope.com/u/Jinx)\ **Post date:** [April 28, 2015, 1:43am UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/3 "2015-04-28T01:43:53Z")
OK, say it’s 24 shares around $50 each = $1200. Is 50% still reasonable? ---
**Author:** ![Saturn\_Dreams](https://avatars.discourse-cdn.com/v4/letter/s/dc4da7/32.png) [@Saturn\_Dreams](https://boards.straightdope.com/u/Saturn_Dreams)\ **Post date:** [April 28, 2015, 1:57am UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/4 "2015-04-28T01:57:20Z")
I’m assuming you’re using an European broker since they’re charging you by volume. In no universe have I ever heard of a 50% broker commission. Usually, they are in the low single digits, sometimes even below 1% with a set floor. ---
**Author:** ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)\ **Post date:** [April 28, 2015, 2:22am UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/5 "2015-04-28T02:22:07Z")
Watch **The Wolf of Wallstreet**. The whole movie (based loosely on a true story) is based around the idea of selling stocks to gullible people at 50% commission. In short, no it isn’t reasonable in the least but it does help some people afford an excessively extravagant lifestyle. That is fine if it is that type of thing is the charity of your choice but, otherwise, absolutely not. Tell them to get fucked as many ways as you can think of. I have no idea what types of stocks these are but they may be penny stocks. If so, that is just pure gambling with a hopeless house advantage. More reputable stocks can be bought in almost any reasonable amount for just a few dollars commission on any of the competing online brokerage firms. ---
**Author:** ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)\ **Post date:** [April 28, 2015, 2:25am UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/6 "2015-04-28T02:25:26Z")
> [@Jinx](#): > > OK, say it’s 24 shares around $50 each = $1200. Is 50% still reasonable? No, never - full-stop. That is a pure scam. Even back when stockbrokers made decent commissions based on smaller sales, the standard was still 1% and even that was a lot in retrospect. If you want to by shares directly, just open up a flat-fee per trade account at any of the major online providers and be done with it. ---
**Author:** ![Musicat](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/musicat/32/20189_2.png) [@Musicat](https://boards.straightdope.com/u/Musicat)\ **Post date:** [April 28, 2015, 2:32am UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/7 "2015-04-28T02:32:27Z")
I don’t sell stocks, I sell real estate. If you want me to sell a lot worth $8,000, I will charge a minimum commission of $4,000, which works out to 50%. If you don’t like these figures, you can sell it yourself, but it’s not worth my time for less. It’s not illegal, and it’s not a scam. But you can imagine that it’s rarely done. ---
**Author:** ![Jonathan\_Chance](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jonathan_chance/32/701_2.png) [@Jonathan\_Chance](https://boards.straightdope.com/u/Jonathan_Chance)\ **Post date:** [April 28, 2015, 2:35am UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/8 "2015-04-28T02:35:49Z")
> [@Jinx](#): > > OK, say it’s 24 shares around $50 each = $1200. Is 50% still reasonable? No. Not remotely. I’m a broker and my firms most expensive transaction - which this wouldn’t be - is 5%. Get a new broker. ---
**Author:** ![Spiderman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/spiderman/32/230_2.png) [@Spiderman](https://boards.straightdope.com/u/Spiderman)\ **Post date:** [April 28, 2015, 2:44am UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/9 "2015-04-28T02:44:26Z")
> [@Jinx](#): > > OK, say it’s 24 shares around $50 each = $1200. Is 50% still reasonable? No! It’s _way_ beyond reasonable. ---
**Author:** ![Jinx](https://avatars.discourse-cdn.com/v4/letter/j/c6cbf5/32.png) [@Jinx](https://boards.straightdope.com/u/Jinx)\ **Post date:** [April 28, 2015, 11:55am UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/10 "2015-04-28T11:55:56Z")
Thanks, all! It just seemed equivalent to usury. ---
**Author:** ![Gothic](https://avatars.discourse-cdn.com/v4/letter/g/839c29/32.png) [@Gothic](https://boards.straightdope.com/u/Gothic)\ **Post date:** [April 28, 2015, 1:21pm UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/11 "2015-04-28T13:21:09Z")
Is it illegal to charge 50% on 24 shares around $50 each = $1200? I would think Finra has maximun percentage? ---
**Author:** ![Isilder](https://avatars.discourse-cdn.com/v4/letter/i/cc9497/32.png) [@Isilder](https://boards.straightdope.com/u/Isilder)\ **Post date:** [April 28, 2015, 1:41pm UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/12 "2015-04-28T13:41:34Z")
> [@Musicat](#): > > I don’t sell stocks, I sell real estate. If you want me to sell a lot worth $8,000, I will charge a minimum commission of $4,000, which works out to 50%. If you don’t like these figures, you can sell it yourself, but it’s not worth my time for less. > > It’s not illegal, and it’s not a scam. But you can imagine that it’s rarely done. I can only think Jinx is being spammed by some one saying "great low commission payable, only 50% ! " OR he’s contacted someone who advertised, perhaps the advert says “we even sell small numbers of shares”. (but like, they’d better be worth $15,000 each !" The issue is the minimum fee .. did they quote 50% , or did they quote a dollar amount, and really its the minimum fee they are charging ? Also, the terminology could be confusing, perhaps they really mean to say minimum transaction of $X. ---
**Author:** ![Bill\_Door](https://avatars.discourse-cdn.com/v4/letter/b/50afbb/32.png) [@Bill\_Door](https://boards.straightdope.com/u/Bill_Door)\ **Post date:** [April 28, 2015, 2:00pm UTC](https://boards.straightdope.com/t/brokers-fee-is-this-reasonable/718691/13 "2015-04-28T14:00:08Z")
There are some mutual funds with crazy high loads and fees but 50% seems way out of line even for one of them. Is it an over the counter stock not traded on an exchange?