Sunday, October 23, 2011

trade commission exists in any security market

Many authorities claim that "unlike stock market, this ... market has no trade commission". Those authorities often say you just pay for the bid/ask spread and the dealer just earns that spread.

In reality, any transaction (even if just buyer/seller without middleman) can involve commission or transaction fee. The bigger player or Whoever with more power can more or less "arbitrarily" impose a transaction fee to cover her expenses, whatever they are.


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