Final answer:
A broker charges a commission for each trade, whether buying or selling assets, and transaction fees are also incurred.
Step-by-step explanation:
A broker typically charges a commission regardless of whether an investor buys or sells assets. Moreover, transaction fees are incurred with every transaction. These commissions and fees represent the costs of executing trades through a brokerage platform and are an important factor for investors to consider when making investment decisions.
For example, if a broker charges a flat fee of $10 per trade, an investor would pay $10 when they purchase stocks and another $10 when they decide to sell those stocks. Additionally, there may be other fees per transaction such as regulatory fees, exchange fees, and more, which can affect the total cost of trading.
Investors should always review a brokerage's fee structure before executing trades to understand the full cost of their investment activities. Comparing different brokers' fees can also help in selecting the most cost-effective platform for one's trading needs.