Search thousands of topics on CostHelper.com

BROWSE ALL TOPICS >> appliances babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business weddings
CostHelper > Personal Finance  > Taxes & Financial Planning > Stock Broker

Stock Broker Cost


How Much Does a Stock Broker Cost?

 
low costLow: $7-$20 per transactionhigh costHigh: $400-$700 per transaction
post E-mail post Post  

In order to buy and sell stocks, you need a broker; the public does not have direct access to the stock exchange.

Typical costs:

  • Fees for a single stock transaction can range from $7-$20 with a discount brokerage up to $400-$700 for a full-service firm, according to an article in Optemetric Management magazine[1] .
  • Unless there is a minimum amount of money invested or a certain number of transactions each year, some brokerage firms charge annual account maintenance fees of $25-$200. For a small investor sitting on $2,000 worth of stocks with few or no trades each year, paying $160 represents 8 percent of that nest egg, according to The Motley Fool[2] . If you have limited funds to invest, look for firms with no minimum requirements and no maintenance fee. Newsday.com gives an overview.
  • ThinkQuest.org[3] gives an extremely clear example of how to calculate stock commissions and profits.
Related articles: Financial Planner, Mutual Fund, IRA, Credit Card

What should be included:
  • Full-service brokers usually offer a wider variety of financial products (stocks, bonds, annuities, insurance), provide investment advice and research, and charge higher fees. For less-knowledgeable investors, a full-service broker is similar to a personal shopping assistant. But they are paid on a commission basis, which means their income is based not on how well your portfolio does but on how often you buy or sell. They will often solicit business, suggesting specific transactions.
  • Discount brokers concentrate on fewer products than full-service brokers, carry out transactions with no frills, generally do not offer any advice or research, often provide online computer trading orders, and charge lower fees. They don't solicit and usually are paid a salary rather than commissions. A discount brokerage house makes money on a high volume of trading fees. Customers save a great deal of money by doing their own research and making their own decisions. The Investment FAQ[4] gives an overview of discount brokers.
  • Reliability and speed are crucial, and it can cost money if a trade is delayed. Ask how and when your orders will be processed, and if there are options if a website is down. AccuInvest.com gives a general overview, and compares direct access and online brokers.
Shopping for a stock broker:
  • Decide how much money you want to invest; determine if you're interested in stocks, mutual funds, options, bonds or CDs; research to see which brokers offer the product(s) you want; and then carefully compare fees and services, including trading commissions, account maintenance fees, IRS custodial fees and other costs. The Missouri Securities Division provides a guide for beginning investors.
  • MSNBC.com[5] gives a quick overview of picking a full-service broker. Check with the securities regulator in your state to be sure a broker is properly registered and if there have been complaints.
  • Biz.Yahoo.com[6] gives a numbered outline for choosing an online broker.
  • The Motley Fool[7] provides a broker comparison chart for TD Ameritrade, ShareBuilder, Power E*Trade and Fidelity, with links to these four major brokerages.
  • ConsumerSearch.com[8] lists the best reviews of online brokers, including comparison charts and links.
post E-mail post Post  
CostHelper News


3 Ways to Have the Government Pay You Back for Your Energy Efficient Upgrades
Any renovations or upgrades made to your home this year that included energy-efficient appliances could be eligible for some federal energy tax credits. But it's not just appliances. || Posted December 9 2013


7 Lesser-Known Discounts for the 50+ Crowd
As they age, members of the Baby Boomer generation don't like to admit that they're senior citizens, but they love getting discounts. It's kind of a quandary, because some of the best deals available are reduced prices for older folks. || Posted October 21 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments


 

Comment On Your Experience With a Stock Broker
 
Subject:  *
Amount Spent:  *
Company: Account Type: 
Comments: 
Purchased:  Year: 
City:  * State:  *
 
Information about you:
Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
*=required field.
 



External Resources:
  1.  www.findarticles.com/p/articles/mi_qa3921/is_200206/ai_n9095251
  2.  www.fool.com/investing/brokerage/2005/09/01/brokerage-fees-low-or-high.aspx
  3.  library.thinkquest.org/4116/Investing/buying.htm
  4.  invest-faq.com/articles/trade-disc-brok.html
  5.  www.nbcnews.com/id/8782318/
  6.  biz.yahoo.com/edu/cb/ir_cb4.ir.html
  7.  www.fool.com/how-to-invest/broker/index.aspx?ref=60broker
  8.  www.consumersearch.com/online-brokers
More Personal Finance Topics
Check Out All Costs for Personal Finance How Much Do Funeral Flowers Cost? How Much Do Tax Returns Cost? How Much Does Closing a Home Cost?

Search Thousands of Topics on CostHelper.com



Today's Featured Cost Articles

About CostHelper
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community
Deep cleaning and extractions
Paid: 90.00
When we got our 4-year baby from someone she had horrible breath and our vet recommended a deep cleaning for $175. I checked around and the SOHFGA did the same procedure for $80. So I had them do it at the same time we had her spayed... [more]
-Cocoa's Mom - Phyllis Rios
Dog Teeth Cleaning Cost
DIY (basic tools)
Paid: 0.00
The person that wrote this story.. don't have any idea what the true costs of auto repairs are. And like so many others that will talk about auto repairs, football, religion.... because they saw it somewhere... [more]
-smar
Brakes Cost
Bridge/Crown
Paid: 3200.00
Been going to this same dentist for 15yrs. Had two previous bridges and crowns and only paid 900.00 per procedure just about five years ago!! SERIOUSLY…$3200.00!!! I showed up with $1000... [more]
-Suz
Dental Crown Cost
Engine replacement of 1995Honda Prelude Si
Paid: 2000.00
My question is if you get a engine replaced why would they want to charge you again to replace the timing chain?... [more]
-Carter
Replacing a Timing Chain Cost
Cervical Laser Surgery for Abnormal Cell Changes
Paid: 45.97
Without insurance the procedure would have cost about $1,000. My insurance isn't great, but it still came to only $45. The procedure was performed without anesthesia... [more]
-ephthat
Cervical Cancer Treatment Cost
A 9-miles ride in ambulance with no medical attention cost 1200 in WA
Paid: 1200.00
This is legal rip-off. In my case, just a 9 miles ride from 1 hospital to the other without any medical attention cost me 1200 out of pocket. How can states attorneys and legislators let this happen everywhere... [more]
-TomN
Ambulance Cost