Commission House

When you want to buy and sell stocks, you might go to an online brokerage like TD Ameritrade and pay low trading fees. Or you can get on the phone and call people who will make trades on stocks, mutual funds, and bonds for you. And you’ll pay much higher fees (sometimes hidden ones) in the process.

Unless, of course, the person you’re trying to call is out on the golf course.

These higher cost traders operate in commission houses. They don’t just buy and sell stocks. They also can take care of settlement, or deal with a client’s margin accounts. The fees associated with commission houses are a major reason investors should learn to trade for themselves.