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What is a commission and how does it work?

A commission is a service charge assessed by a broker or investment advisor for providing investment advice or handling purchases and sales of securities for a client. There are important differences between commissions and fees, at least in the way these words are used to describe professional advisors in the financial services industry.

Is commission-based pay advantageous to employees?

Commission-based pay is advantageous to employees because they ultimately control how much they make. In many ways, when a company uses commission pay, it does not limit the employee's potential to increase their own income. Related: How To Find Commission Rate in 5 Steps: (Plus Definition and Types of Commission Rates)

What is a variable Commission?

A variable commission changes according to factors established by the company. This type of commission pay is common when the business wants to obtain certain clients or reach a specific sales goal. As a result, this commission varies depending on who the employee sells to or how much they sell.

How much Commission do IBS get?

IBs commission amount can increase depending on the number of referred clients or their deposit amounts. Forex IBs generally receive an on- going commission, that is to say a life- time commission, for as long as their clients trade in the market.

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