Question Details

	Username: ForexGuy Rating: Asked to: Dara Madee Date Created: 15 Apr 2017
Category	46
Tag	Financial
Question	Please give the definition of 'Hard Dollars'.

Advice from Guru

Hi ForexGuy,

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.

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.

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