Stockbroker

A stockbroker buys and sells shares on behalf of others. A stockbroker takes a brokerage fee on each trade as payment for his work. The brokerage fee can be fixed or proportional.

Usually, stockbrokers and online brokers take a fixed minimum fee or a percentage fee when the proportional fee exceed the fixed minimum fee. When you buy and sell shares of a stock broker or an online broker you get a contract note. A contract note is a receipt of the trade that has been done.

An online broker will usually only give you an electronic contract note. A contract note may state that you have bought or sold on commission or for the account. If it stands for the account, it means you've made the deal directly with your broker. If your contract note is in commission, it means that you have done a trade with a third part, the broker has only been an agent.