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Hard Dollars

What is 'Hard Dollars'

Cash fees or payments made by an investor or customer to a brokerage firm in return for their services. Hard dollars differ from soft dollar payments because soft dollar payments are paid within the commission revenue from making trades or deducted from the value of any other transactions.

Explaining 'Hard Dollars'

If an investor places a market order and pays the brokerage a $40 fee for that transaction, that is a hard dollar payment.


This term can also be referred to as money paid out to a travel agent by suppliers to counterbalance costs of marketing supplier products.


Further Reading


Debt and seniority: An analysis of the role of hard claims in constraining management
www.nber.org [PDF]
… from Defensive to Constructive, achievement and team-oriented, and the financial results show it … the translation of “soft” organizational culture change initiatives into “hard” dollars for the … Eric J. Sanders has master's degrees in economics and business administration, twenty …

More dollars than sense: Refining our knowledge of development finance using AidDataMore dollars than sense: Refining our knowledge of development finance using AidData
www.sciencedirect.com [PDF]
… from Defensive to Constructive, achievement and team-oriented, and the financial results show it … the translation of “soft” organizational culture change initiatives into “hard” dollars for the … Eric J. Sanders has master's degrees in economics and business administration, twenty …

Quantifying and Lowering Security Costs—Hard DollarsQuantifying and Lowering Security Costs—Hard Dollars
www.tandfonline.com [PDF]
… from Defensive to Constructive, achievement and team-oriented, and the financial results show it … the translation of “soft” organizational culture change initiatives into “hard” dollars for the … Eric J. Sanders has master's degrees in economics and business administration, twenty …

New answers to hard questions posed by Rodriguez: Ending the separation of school finance and educational policy by bridging the gap between wrong and remedyNew answers to hard questions posed by Rodriguez: Ending the separation of school finance and educational policy by bridging the gap between wrong and remedy
heinonline.org [PDF]
… from Defensive to Constructive, achievement and team-oriented, and the financial results show it … the translation of “soft” organizational culture change initiatives into “hard” dollars for the … Eric J. Sanders has master's degrees in economics and business administration, twenty …

Neoliberalizing states: thin policies/hard outcomesNeoliberalizing states: thin policies/hard outcomes
journals.sagepub.com [PDF]
… from Defensive to Constructive, achievement and team-oriented, and the financial results show it … the translation of “soft” organizational culture change initiatives into “hard” dollars for the … Eric J. Sanders has master's degrees in economics and business administration, twenty …



Q&A About Hard Dollars


What are they?

Market orders and trade orders.

What is a hard dollar payment?

A hard dollar payment is a fee or payment made by an investor to a brokerage firm in return for their services.

Are there any other examples of hard dollars besides market and trade orders?

Yes, there is another example called "special handling" which can be used when an investor wants special attention paid to his or her account such as having it managed by a specific broker or receiving regular account statements via fax instead of mail.

Is there more than one type of hard dollar payments?

Yes, there are two types.

What do trade orders pay for?

Trade orders pay for broker's services in executing the order and also paying commissions on additional transactions that may be required to complete the transaction (such as buying securities to cover short positions).

What do market orders pay for?

They pay for broker's services in executing the order.

How does a hard dollar differ from soft dollars?

Hard dollars are paid within the commission revenue from making trades, whereas soft dollars are deducted from the value of any other transactions.

Does this mean that all brokers charge fees based on these three categories ?

No, not all brokers charge fees based on these three categories . Some brokers may choose to use only one category while others may use all three categories .

Why would some brokers choose not to use certain categories ?

Some brokers may choose not to use certain categories because they believe that using them will cause investors with small accounts who cannot afford higher fees will leave their company .

What does a hard currency represent?

A hard currency represents a stable and reliable store of value.

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