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If NASDAQ is a corporation, does it make profits by charging fees on transactions? When I pay a fee for buying stocks, am I paying the broker or NASDAQ?

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NASDAQ OMX Group owns NASDAQ, a stock exchange.

It is a corporation, and is listed on the NASDAQ as NDAQ.

It makes money by:

  1. They charge each company to list their stock in their market.
  2. They charge for transaction that is taking place on their exchange server
  3. They may be offering other financial or other listing (or IPO) related services in a package deal with contracted third parties.

source

NASDAQ also charges for market data services, found in the NASDAQ "Datastore".

Other information about the fees charged by NYSE and NASDAQ may be found in the Investopedia article The NYSE And Nasdaq: How They Work.

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Just to add, the fee you pay goes to the broker. However the broker pays NASDAQ fee that are yearly as well as per transaction. –  Dheer Apr 16 '12 at 6:16
    
The NASDAQ per-transaction fees appear to be very low: $0.0005 to $0.0035 per share, it looks like, depending on how they actually execute the trade. If you're paying a broker ~$4-$20 a trade and not transacting tens of thousands of shares with each order, the Nasdaq part of that is essentially nothing. nasdaqtrader.com/Trader.aspx?id=PriceListTrading2 –  fennec Apr 20 '12 at 6:21

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