Negotiated commission

An unfixed broker's commission that is determined through negotiation, depending on the specifics of the trades performed.

Negotiated Commission

A fee that a client negotiates with a broker to conduct trades on the client's behalf. Some brokerages charge set commissions, but some allow clients, especially large ones, to apply negotiated commissions. They became more common after commissions were deregulated in 1975. See also: May Day.

negotiated commission

A fee for trading securities that is subject to bargaining between the customer and the brokerage firm. Negotiated commissions began to become widespread in the United States in 1975. See also discount brokerage firm, May Day.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Mentioned in

May Day

References in periodicals archive

Similarly, a negotiated commission could accomplish the same result as a fee.

Comparing fees and commissions: fees acknowledge the demands of clients who need consulting services as well as placement of insurance

And except for environmental impairment, the same trend held for compensation based on line of coverage -- a straight or negotiated commission was the risk manager's preferred form of agent/broker compensation.

Broker payoff - Commission? Fee? or both? In the end, many risk managers may find that their optimum compensation arrangement is actually a combination of fees and commissions

Plumeri's claim that the higher negotiated commissions Willis is paid result in a better outcome for the client.

Big "I" disagrees with Willis CEO

"[Merrill Lynch] has always been the leader in bringing out new directions, new focuses," he says, pointing out that concepts such as cash management accounts and negotiated commissions were pioneered by the firm in the 1970s, though they are widely employed today.

Eugene Banks: Beyond the bottom line. (People)

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