Average Broker In US In The 90’s Charged 2 – 3%

With a vastly growing small business owner segment, brokerage fees are decreasing even more, with increased competition, compared to the 2 to 3% brokerage fees that were being charged in the early 1990’s.  The minority-owned municipal bond houses prospered in the early 1990’s, and are now experiencing difficult financial times, while being assisted by Government programs.
 
A business broker that had its corporate launch in Austin, TX, charges a straight 1% across the board.  They represent the next generation of intermediary business brokers.  Their modern technology platform provides automated services, with increased security access and tracking of all documentation.  They recognize that business owners’ years of hard work, investment and ingenuity created a value that belongs to the owner.  With that goal in mind, they are committed to maximize an area long in need of improvement, the brokerage firm, with lower brokerage fees, in order to help the seller achieve top dollar liquidity for their business.

Business brokers are evolving to a new paradigm.  Typically they help business owners who are ready to sell or retire, to market and sell their businesses to potential buyers, with the utmost confidentiality.  This brokerage firm charges 1% of the transaction price, using the same value principals as higher fee based brokers.  This results in significant savings to business brokers, sometimes as much as hundreds of thousands of dollars in fees. 

This system of decreased fees works, giving more money to the owners.  It empowers business owners by leveraging the marketplace to a global expansion of active business buyers, predominantly due to an increased use of the internet. 

Brokerage house revenues depend predominantly on trading commissions.  Since the early 1990’s, the brokerage house earnings plummeted, due to increased competition which decreased fees.
 
Brokerages benefited from a surge in acquisition activity and trading.  From April to December, 2006, there was a 29% decrease in earnings for securities firms.  This was due to a decrease in commission fees and trading volume.
ETF’s, or electronically transferred funds, can be traded on the sharemarket with no minimum investment.  Aside from brokerage, fees are capped at 0.6 per cent.