Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



What Other Fees Will I Be Charged?

Of course, the most obvious thing you'll pay when buying or selling stocks is a per-trade commission. But you'll find that most brokerages charge other fees, including the following:

  • Transfer fees. If you have stocks, bonds, or mutual funds in an existing brokerage account, you may have to pay a fee to move them into your new account.
  • Account closing fees. To cover administrative costs, some brokerages will charge a fee to close or transfer assets out of your brokerage account.
  • IRA custodian fees. You may also pay an additional annual fee if you have an IRA account.
  • Wire transfer fees. Be careful if you need to move money quickly -- some brokerages pass on their wire transfer costs to their customers. In contrast, most regular electronic transfers don't involve paying a fee, although they take slightly longer.
  • Account inactivity fees. Because brokerages make the most money on accounts in which customers trade actively, some will charge fees if you don't make a certain number of trades every quarter or year.
  • Annual fees. In some cases, you might pay a fee just for being a customer.
  • Minimum balance fees. Some brokerages charge fees for not maintaining a minimum level of assets in your account. Again, this is partially to recoup costs of maintaining accounts that aren't very profitable for brokers.

When you add all this up, you may find that you're paying quite a bit more than you expected for your broker. So be sure you understand exactly what fees you'll have to pay.

In addition, brokers may offer other special "services", so be sure to read the fine print and decide what's worth paying for.

Read/Post Comments (0) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 557235, ~/Articles/ArticleHandler.aspx, 10/24/2016 11:11:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes