As the size of the trade increases,brokerage on average _______________
A)Increases as a percentage of the trade value
B)Decreases in dollar terms
C)Decreases as a percentage of the trade value
D)None of the above

Question

Quizplus · Accepted Answer

This is known as volume discount or tiered pricing. Brokers often offer lower commissions to clients who trade larger volumes. As a result, brokerage fees decrease as a percentage of the total trade value for larger trades.

As the Size of the Trade Increases,brokerage on Average _______________