How to Calculate Stock Broker Costs
Investing in the stock market can be exciting as well as profitable. But profits can be muted and losses increased by brokerage fees. To calculate gains (or losses), you must know exactly how much you're paying in brokerage fees. These fees vary by type of broker and how much assistance the firm provides.
Other People Are Reading
Instructions
-
-
1
Consider the level of involvement you need from a broker. The services of a broker who recommends stocks and strategies cost more than those of one who solely handles transactions. If you're savvy in the ways of the market, go with a broker that will just execute your trades.
-
2
Realize that many full-service brokers charge annual fees in addition to the fees imposed for transactions. These fees can range from $25 to $200 a year. A discount broker may not have an annual fee at all.
-
-
3
Research the brokers that offer the services you need, then compare prices. Some full-service brokers may charge up to $700 for a trade. Others charge less. A discount broker or an online broker--one that is not advising you--may charge only $7 to $20 per trade.
-
1
