Brokerage fees are what a broker charges for various services, like subscriptions for premium research and investing data or additional trading platforms. Some even charge maintenance and inactivity fees, but generally, you can avoid paying these brokerage fees with the right broker. Finding the right broker can make a huge difference in the long-term; fees can seriously eat into your investment returns.
In addition to the brokerage fees outlined above, there are various other charges you may encounter:. Trade commission: Also called a stock trading fee, this is a brokerage fee that is charged when you buy or sell stocks.
You may also pay commissions or fees for buying and selling other investments, like options or exchange-traded funds. Expense ratio: An annual fee charged by mutual funds, index funds and exchange-traded funds, as a percentage of your investment in the fund.
Sales load: A sales charge or commission on some mutual funds, paid to the broker or salesperson who sold the fund. Management or advisory fee: Typically a percentage of assets under management, paid by an investor to a financial advisor or robo-advisor. Limited time offer. Terms apply. Over time, that difference really adds up. Total annual investment fees. Account value after 30 years.
Amount lost to fees. The last column in the chart shows how much would be lost to fees over the course of 30 years. Use the investment fee calculator below to see how investment and brokerage fees could eat into your returns over time. See NerdWallet's analysis of the best brokers. If you want to be aware of your investing fees — and trust us when we say you do — you need to know where to look.
Here are the most common expenses, what you can expect to pay for each and where to find the information:. A brokerage fee is charged by the stock broker that houses your account. Brokerage fees might include:. Brokerage fee. Typical cost. How to avoid. Note broker fees may vary depending on account type.
Subscriptions are optional. Look for a broker that offers premium research and data for free. There are high-quality platforms available for free, like thinkorswim from TD Ameritrade.
Opt for emailed statements and notifications. Most brokerages charge a fee to transfer or close your account. Some brokerages will offer to reimburse transfer fees incurred by new customers.
In general, you can avoid or minimize brokerage account fees by choosing an online broker that is a good match for your trading and investing style. Is stock trading right for you? Learn how to begin and survive. Though it may not be in plain sight, there will be a page detailing each brokerage fee. If you have questions, call customer service and ask before opening an account.
There are many types of brokerage fees charged in various industries such as financial services, insurance, real estate, and delivery services. Brokerage fees, also known as broker fees, are based on a percentage of the transaction, as a flat fee, or a hybrid of the two.
Brokerage fees vary according to the industry and type of broker. In the real estate industry, a brokerage fee is typically a flat fee or a standard percentage charged to the buyer, the seller, or both. In the insurance industry, a broker, unlike an agent, represents the interests of the customer and not the insurer.
Brokers find the best insurance policies to meet customers' needs and will charge fees for their services. In rare instances, brokers may collect fees from both the insurer and the individual buying the insurance policy. In the financial securities industry, a brokerage fee is charged to facilitate trading or to administer investment or other accounts.
The three main types of brokers that charge brokerage fees are full-service, discount, and online. Full-service brokers offer a wide range of products and services such as estate planning, tax consultation and preparation, and other financial services either in-person or over the phone.
As a result, they earn the largest brokerage fees. A 12B-1 fee is a recurring fee that a broker receives for selling a mutual fund.
The fees range from 0. Annual maintenance fees range from 0. Because discount brokers offer a narrower selection of products and provide no investment advice, they charge lower fees than full-service brokers. Discount brokers charge a flat fee for each trade transaction. Account maintenance fees are usually around 0.
Online brokers have the least expensive brokerage fees. Their primary role is to allow investors to conduct online trading. Customer service is limited. Many online brokers have removed a specific commission fee for trades on stock shares, but commission fees for options or futures trades still apply.
The fees vary and may be based on a per-contract or per-share charge. Investors can reduce account maintenance fees by comparing brokers, their provided services, and their fees. Buying no-load mutual funds or fee-free investments can help avoid per-trade fees. As a result, TD Ameritrade calculates a blended rate that equals or slightly exceeds the amount it is required to remit to the options exchanges. All prices shown in U. Fees charged may vary by program, location or arrangements.
All service fees are subject to change. Pass-through fees charged to TD Ameritrade will be passed on to the client's account.
Certificate requests requiring extraordinary processing, including certificates for foreign securities and requests to break certificates into multiple denominations, may incur additional charges which will be passed through to your account.
Some accounts, such as option-approved accounts, are required to receive monthly statements either electronically free or via U. Transfer and termination fees may be charged by the firm you are transferring the account from. Access to real-time market data is conditioned on acceptance of the exchange agreements.
Certificate Withdrawal TD Ameritrade. Checking TD Ameritrade. Debit Card TD Ameritrade. Debit Card Unlimited Rebates - Nationwide. Miscellaneous TD Ameritrade. Miscellaneous Billed at cost. Reorganization TD Ameritrade. Transfers4 TD Ameritrade. Transfers4 FREE. TD Ameritrade 0. Monthly Subscription Fees Non-professional clients. Monthly Subscription Fees Professional clients. Premium Research Subscriptions Non-professional clients.
Premium Research Subscriptions Professional clients.
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