What is a brokerage fee?

A brokerage fee, also called a broker fee, is a fee charged by a broker. Brokers charge various types of fees for lots of reasons. For example, you may pay brokerage fees when you make purchases, trade stocks or options, to maintain your account or pay for data.

How much does a discount broker cost?

Discount brokers charge a flat fee for each trade transaction. The per-trade flat fee ranges from less than $5 to more than $30 per trade. Account maintenance fees are usually around 0.5% per year based on assets held. Online brokers have the least expensive brokerage fees. Their primary role is to allow investors to conduct online trading.

How much does a full service broker cost?

You’ll pay more for all of these services because full-service brokers are paid commissions based on transactions. For example, you may pay a full-service broker $150 per transaction. Discount brokers charge much lower fees, often less than $10-20 per trade. Some brokers even offer commission-free trading.

How much does it cost to transfer a brokerage account?

Brokerages use the Automated Customer Account Transfer Service (ACATS). The average cost to transfer a brokerage account to another brokerage is around $65. Some brokerages offer a waiver or reimbursement of ACAT fees. Online brokerages, including banks, charge wire transfer fees, which can be steep one-time fees for wire transfers.