It is said that nothing in this world is free, and this couldn’t be more true than with online trading brokerages. Every single trading brokerage charges fees in various ways for their services. Some of these fees are very straightforward and transparent, while some may not even be known by the trader. It is important that traders understand what kind of fees they are subject too, and how much these fees can cost. On this page you will learn what types of fees a trader can expect from the average trading brokerage.show more
The trading fee is a commission for making a trade on the brokerages platform. The brokerage charges this commission for each trade a trader makes. These trading fees vary from brokerage to brokerage, but are almost always implemented. An example of how much a trading fee might cost is; fee for stocks/fee for stocks/ETFs/ETFs range anywhere from $4.95 – $19.95. Some trading brokerages offer traders discounted fees for trading in larger volumes.
Again, this fee varies from broker to broker, but is often charged either at the beginning or the end of the year. Some brokers do not automatically charge account maintenance fees from year to year, but instead charge a maintenance fee for account inactivity or if the account balance dips below a certain amount.
When transferring money from an account in one brokerage to another, the brokerage in which you are moving away from will charge a fee. Generally, this fee is around $65, which is the brokers way of incentivizing the trader not to leave their services for another.
Every trader needs to transfer money to and from their personal bank account. There are numerous options for doing this, some are even free. However, the one method of transfer that always charges a fee, no matter which brokerage it is, is wire transfers. The average fee for wire transfers is $25, but this fee varies from broker to broker.
Checking accounts that are directly connected to the online trading brokerage will almost always have a fee associated with the service. Many brokerages do not offer checking account connection, but for the ones who do, they charge a fee.
For traders who prefer their banking statements on paper, they will likely be required to pay a fee. On average this fee is $2 per statement, that’s $24 per year for monthly statements.
Some brokerages will charge you a fee for closing your account no matter how long you trade with them. Other brokerages will only charge an account closure fee if it is closed within a certain time period. It is strongly suggested that you avoid brokerages that charge a fee for closing your account.