commission house: meaning, definition, pronunciation and examples
C1Formal / Technical (Business, Finance, Commodities Trading)
Quick answer
What does “commission house” mean?
A business that acts as an agent or intermediary, buying and selling goods (often agricultural or financial products) for clients on a commission basis.
Audio
Pronunciation
Definition
Meaning and Definition
A business that acts as an agent or intermediary, buying and selling goods (often agricultural or financial products) for clients on a commission basis.
Historically, a firm specialising in the sale of commodities (like grain, cotton, or livestock) on behalf of producers. In modern finance, can refer to brokerage firms executing trades for clients. It does not take ownership of the goods but facilitates transactions for a fee.
Dialectal Variation
British vs American Usage
Differences
More commonly used in American English, particularly in historical/agricultural contexts. In British English, 'broker' or 'brokerage house' is often preferred in financial contexts, while 'factor' or 'merchant' might be used historically.
Connotations
In the US, it can have a historical connotation tied to the commodities exchange (e.g., Chicago). In the UK, it may sound slightly archaic or specifically American.
Frequency
Low frequency in both varieties, but higher in American English within specific industries like commodities trading.
Grammar
How to Use “commission house” in a Sentence
[Commission house] + [verb: acts as/operates as/serves as] + [an agent for X][Client] + [verb: sells/buys through] + [a commission house][Commission house] + [verb: charges/earns] + [a commission]Vocabulary
Collocations
Examples
Examples of “commission house” in a Sentence
verb
British English
- Not applicable as a verb.
American English
- Not applicable as a verb.
adverb
British English
- Not applicable as an adverb.
American English
- Not applicable as an adverb.
adjective
British English
- Not applicable as an adjective.
American English
- Not applicable as an adjective.
Usage
Meaning in Context
Business
The farmer's wheat was sold on the exchange via a reputable commission house.
Academic
The rise of commission houses in the 19th century facilitated the growth of national commodity markets.
Everyday
Rarely used in everyday conversation.
Technical
The FCM (Futures Commission Merchant) acts as a commission house for derivatives trading.
Vocabulary
Synonyms of “commission house”
Strong
Weak
Vocabulary
Antonyms of “commission house”
Watch out
Common Mistakes When Using “commission house”
- Using it to refer to a retail shop that sells on consignment (like a charity shop).
- Confusing it with a 'commission' in the sense of a fee alone.
- Using it as a verb (e.g., 'They commission-housed the goods' is incorrect).
FAQ
Frequently Asked Questions
In modern financial contexts, yes, a stockbrokerage is a type of commission house. Historically, commission houses dealt more with physical commodities.
Typically, no. It acts as an agent, facilitating the sale between the owner (principal) and the buyer, earning a commission for the service.
It is a specialised term. In finance, 'brokerage firm' is more common. The term retains use in specific commodities and futures trading industries.
Yes, it can act as a buying agent for a client, sourcing goods on their behalf for a commission.
A business that acts as an agent or intermediary, buying and selling goods (often agricultural or financial products) for clients on a commission basis.
Commission house is usually formal / technical (business, finance, commodities trading) in register.
Commission house: in British English it is pronounced /kəˈmɪʃən haʊs/, and in American English it is pronounced /kəˈmɪʃən haʊs/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “None specific to this term.”
Learning
Memory Aids
Mnemonic
Think of a HOUSE that works on COMMISSION: it doesn't own products but helps sell them for a cut.
Conceptual Metaphor
MARKETPLACE AS A THEATRE (The commission house is a backstage agent managing the sale of goods for the producer).
Practice
Quiz
What is the primary function of a commission house?