A friend is trying to decide whether to choose Broker A who charges a flat fee of $50.00 per trade or Broker B whocharges 2% of the trade.
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Question

A friend is trying to decide whether to choose Broker A who charges a flat fee of $50.00 per trade or Broker B

who charges 2% of the trade. The better decision depends on how much your friend is planning on spending. 

  • Name a purchase price where Broker A would be the better choice. What would the broker fee cost?
  • Name a purchase price where Broker B would be the better choice. What would the broker fee cost?
  • Is there a purchase price where the broker fees would be equal? 

Include calculations for each.

Top Answer

Broker A price of 10000 would be a better choice as the price charge by broker A is only 50,... View the full answer

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