Why does a broker charge commissions?
Brokerage companies act as intermediaries between investors and exchanges. They provide the technical infrastructure, offer a trading platform, keep records of transactions, and provide analytics and other services.
Commissions are charged for some of these services, and their amount depends on the selected tariff.
What do investors pay commissions for?
Opening and closing an account on the Freedom Broker trading platform is always free of charge.
A commission is charged when buying and selling securities (for executed trades).
The commission amount may vary depending on the market and the financial instrument. As a rule, it is calculated based on the trade amount and the number of instruments traded. The commission may also include a fixed amount per trade.
What types of tariffs are there?
Freedom Broker offers pricing plans for investors with different levels of experience, investment goals, and strategies. They can be divided into three categories:
1. Public tariffs
This category includes the “Investor,” “Standard,” “Standard Plus,” and “International” tariffs.
The main public tariff is “Investor.” It is set by default and has no subscription fee.
Other tariffs are available subject to the established conditions and by agreement with the Company. They differ in the commission rates for trades on various trading platforms.
2. Promotional tariffs
These are special tariffs that apply under the Company’s promotions and separate programs.
For example, the “Start” promo tariff is automatically connected for new clients when they open a brokerage account for the first time. It offers reduced commissions and is valid for 30 days from the date the account is opened. After that, the “Investor” tariff is applied automatically.
This category also includes the special “Student” and “Academic” tariffs. They can be connected if the terms of the relevant programs are met.
3. Subscription tariffs
This category includes “Investment Subscription” and “Trader Subscription.”
They involve a monthly subscription fee and include additional features: educational materials, broadcasts with experts, and mentor support.
Such tariffs are suitable for investors and traders who want to combine independent trading with education and guidance.
You can find the full list of tariffs in the article: What tariffs are available?
How do I choose a suitable tariff?
The choice depends on your investment goals, trading frequency, and the markets you plan to trade on. You can review the terms and commissions in the tariffs section on the Freedom Broker website.