Search thousands of topics on CostHelper

BROWSE ALL TOPICS >> babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business sports 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 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 Post    
CostHelper News


10 Quick and Inexpensive Home Makeover Projects To Do While At Home
You may not be able to host the large family gathering for the holidays, but there are still many ways to pick up items curbside to spruce up your indoor space for your everyday enjoyment and to bring a more festive spirit. || Posted December 30 2020


10 Key Ways to Prepare for Extreme Snow
Forecasters are predicting a true nor'easter will hit the eastern and central states with rain, thunderstorms, ice, snow and high winds over the Thanksgiving weekend. It's crucial to plan ahead, before bad weather hits. || Posted November 26 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
shoulder mri
Paid: 8000.00
Seriously, 8K for an MRI before all the secret insurance kicks in. I was stuck with a 1200 bill and my insurance is pretty good. This is insane for a 20 minute procedure with no nurse assistance... [more]
-stevej45
MRI Cost
Garage conversion for larger Den. Old den will become Breakfast room
Paid: 21000.00
We removed garage door, put in a 107'X60" window and exterior door. We also framed/sheet rocked where the garage door had been and built a closet... [more]
-USAF Retiree's wife
Garage Conversion Cost
Traffic citation
Paid: 500.00
Flat rate... [more]
-OL
Traffic Ticket Attorney Cost
what should have cost under 100
Paid: 399.67
had my back wheel stuck on someone's driveway and I was pulled out as easily as a tractor could have done... [more]
-Morgan Moonscar
Towing a Car Cost
Why is dental insurance stuck in the 80's?
Paid: 55000.00
In 1986, I started my first full time Big Girl job, which came with options for medical insurance that ranged from "Volkswagon to Cadillac, and everything in between" which was up to me to choose based on my needs, what I could af... [more]
-Frogsoup09
Dental Implants Cost
Sticker shock
Paid: 389.00
I was totally shocked it came to 385 for one pair of glasses! Usually 220 at costco... [more]
-Diana Evans
Eyeglasses Cost