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


7 Ways to Stretch Your Reduced Food Budget
End of the year budgets are tight for everyone, especially in this economy.It's especially hard for the millions of Americans who depend on government programs like food stamps to help make ends meet. || Posted November 11 2013


Fix-it Favorites: Duct Tape and WD-40
My mother taught me that all home fixit-projects can be accomplished with either duct tape or WD-40. If something shouldn't move and it does, use duct tape. If something should move and it doesn't, use WD-40. || Posted September 30 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
Replace Toilet Wax Ring (DIY)
Paid: 25.00
Cost could have been cheaper, but previous owners hired a plumber and contractor who didn't do the job right. So we ran into problems. The first wax ring didn't work, so we had to buy the old fashioned type... [more]
-JT Holm
Toilet Repair Cost
Plumbing totourial
Paid: 0.00
I am appalled by some of these charges myself and yes plumbers have a hard,disgusting and exhausting job and it’s not for everyone... [more]
-Caleb Domec
Plumber Cost
Ischemic stroke
Paid: 89000.00
I had a CT scan, they called helicopter to transfer to trauma hospital in Atlanta, but neurosurgeon there said the stroke is is I n a deep area, and would be too dangerously to remove the clot surgically... [more]
-Marie-Jose
Stroke Treatment Cost
Connective tissue graft
Paid: 1300.00
Had to get a connective tissue graft for three of my teeth on my lower left and likely will need a few more done down the road (genetics). The procedure took about an hour and was pain-free... [more]
-
Gum Tissue Graft Cost
Alaska propane pricing 2020
Paid: 130.71
No contract price is $3.87 x 32.8 gallons + $3.81 fee = delivered remote Cooper Landing Alaska. New contract renewal $1.91/gallon for delivery plus propane cost which I need to check on... [more]
-Keith Mantey
Propane Cost
Funeral
Paid: 160.00
Can somebody contact me... [more]
-Terrance Samuel
Releasing Doves Cost