DEFINITION of ‘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.
BREAKING DOWN ‘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.