The high start-up costs of online businesses cause online brokers to charge higher commissions than traditional brokerage firms.

Question

Quizplus · Accepted Answer

Online businesses generally have lower start-up costs compared to traditional brick and mortar businesses. Similarly, online brokerage firms have lower overhead costs than traditional brokerage firms, which should ideally result in lower commissions. However, some online brokers may charge higher commissions due to factors such as offering additional services or features.

The High Start-Up Costs of Online Businesses Cause Online Brokers