Fees charged by online brokers vary in terms of the dollar amount and frequency of trades. Some online brokers may also charge a monthly subscription fee. The standard brokerage charged will vary depending upon the dollar amount of trades placed and method of placement: online or by phone. Our Fees Table shows that brokers generally charge a flat fee for trades up to $10,000-$30,000, while a percentage brokerage fee is applied to trades above.
Many online brokers also offer volume discounts to frequent traders who buy and sell, for example, more than five times in a calendar month. The discount may take the form of discounted brokerage for subsequent trades, rebates on brokerage for all trades placed, refunds of monthly subscription fees or access to dynamic data and software
Visit our Frequent Trader Discount table to find what further discounts are available to frequent traders. Some online brokers will charge a monthly subscription fee which gives investors access to value-added services. This may be a premium or professional branded service for more sophisticated investors or those demanding access to more immediate market data. These services may include dynamic market data, price alerts, interactive charting and access to IPOs (new listings).
Those online brokers that allow you to trade with a margin loan may also charge a slightly higher brokerage fee to process these trades. Investors need to consider the choice of margin lenders open to them and whether they can place margin trades online as well as by phone. Refer to our Fees Table for those online brokers allowing trading with a margin loan.
Previous Article Next Article