Options Trading Tutorial - Do stock brokers have to disclose commissions before buying a stock for you?

Do stock brokers have to disclose commissions before buying a stock for you?

My 401k has offered a personal brokerage account option. I signed up and was required to use a broker picked by my employer to purchase stock. I requested the broker make a 40k trade and get a get a confirmation in the mail a week later that shows he charged me a 1k commission. Is this legal? I should have asked the rate. I assumed it would be no more than a couple hundred. It was 10k shares of a $4 stcok. Any help woul;d be appreciated. Yes..it was my mistake for not asking. I had no idea he would charge me $1,020.00 for a phone conversation that lasted all of 30 seconds. Are there disclosure laws he has to follow?? Charging someone $1,020.00 for a 30 second phone call is highway robbery! thanks Jeff... that's exactly what I was looking for.

Public Comments

A broker charges a commission you paid about 2.5% That is pretty good if he is a full service broker You can get cheaper trades with discount brokerages, but you get no advice, and I don't know if they can work within a 401K Ask your broker, if there is a cheaper way
That's a pretty high rate, but I guess it's up to you to inquire about commissions before a trade.
HE IS SUPPOSE TO TELL you
Commissions are suppose to be published and made available to you. And brokers are prohibited from certain practices. http://www.finra.org/InvestorInformation/InvestorProtection/ProhibitedConduct/index.htm