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Clearing Fee

What does Clearing Fee mean?

A fee charged by the clearing house for clearing services provided to investors. Clearing services include all activities from the time a commitment is made for a transaction until it is settled. The clearing house acts as a third party to a trade. It receives cash from buyers and securities from sellers and, at the end of the process, gives the securities to the buyer and the cash to the seller.

Futures Knowledge Explains Clearing Fee

Clearing fees is most often associated with the trading of futures. Transaction fees often include both a brokerage fee and a clearing fee. It is a variable cost charged on the size of the transaction and depending upon the type of transaction being handled.

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