What is the fee charged by a broker for executing a stock trade called?

The fee charged by a broker for executing a stock trade is called a commission.

A commission compensates a broker or intermediary for arranging or executing a transaction. It may be a fixed amount, a per-share charge, or a percentage of the trade’s value. The exact pricing depends on the broker, account type, security, and market.

Many modern retail brokers advertise zero-commission stock trading, but that does not mean every possible trading cost disappears. Investors may still encounter bid–ask spreads, exchange or regulatory fees, currency-conversion costs, fund expenses, margin interest, or charges for special services. Brokers may also receive payment for order flow in some markets.

Commission is therefore different from the bid–ask spread. A spread is the gap between buying and selling quotes, while a commission is a fee associated with the brokerage service. Investors should review the broker’s fee schedule and trade confirmation to see the actual costs.