What "transaction fee" means in finance

A transaction fee is a charge assessed by a financial institution or other entity to cover the costs associated with processing and executing a financial transaction. These fees can be assessed for a variety of activities, including buying and selling stocks or bonds, transferring funds between accounts, and processing credit card transactions. The amount of the transaction fee may vary depending on the type and size of the transaction, the type of account being used, and other factors. Some financial institutions may waive transaction fees for certain types of accounts or transactions, or may offer reduced fees to high-volume traders or other customers.