Stockbrokers (and their firms) make money through commissions. Sometimes it is easy to spot — like a 5% front-end load (commission) when a person begins to work with the stockbroker or a 5% back-end load (commission) when a person chooses to end working with a stockbroker (and his or her firm). Some firms charge an annual percentage of the assets they are managing as their fee. Some charge transaction fees as they buy and sell securities, so the more they buy and sell securities for you, the more money they make.
Bottom line: Stockbrokers and their firms are in business to make money as they work to try to make money for you. It is very appropriate as you consider using a stockbroker to ask how they make their money. Ask what commissions and fees are charged and when are they charged. Ask questions until you have a thorough understanding of their fees.
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