™A $2 charge on a $100 transaction is 2% of that transaction's value, while the same charge on $10,000 is 0.02%.
Trading
Commission
A fee a broker may charge for executing a transaction or providing a service.
Plain-English context
Put the definition to work.
A zero commission does not mean zero transaction cost: spreads, financing, fund expenses and other charges can remain.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. FINRA — order types and execution