When you buy or sell stocks, ETFs, or crypto, brokerage fees, the charges brokers impose for executing trades. Also known as trading commissions, these fees directly reduce your profits—even if you pick winning investments. Many investors assume they’re free because platforms advertise "zero commission" trades. But that’s only part of the story. Behind the scenes, brokers make money in other ways—through payment for order flow, margin interest, or markups on ETFs and crypto. These hidden costs add up fast, especially if you trade often.
Trading costs, the total expense of buying and selling assets, including fees, spreads, and slippage. Even a $5 fee on a $100 trade might seem small, but over time it can cost you thousands. If you trade 10 times a month at $5 per trade, that’s $600 a year—money that could’ve stayed in your portfolio earning returns. And if you’re using a broker that charges $0.01 per share on options, or a 1% markup on crypto trades, those numbers get worse. Investment fees, all charges tied to managing or holding your portfolio. This includes account maintenance fees, inactivity fees, and fees for research tools or premium data. Some brokers hide these in fine print, only revealing them when you close your account.
It’s not just about the price tag—it’s about what you’re getting. A broker charging $0 might offer poor execution speed, limited asset choices, or no customer support. Another charging $5 might give you real-time data, fractional shares, and tax-loss harvesting. The cheapest broker isn’t always the best. What matters is how much of your return you keep after all costs. Look at your annual statement. Count every fee, even the ones labeled "service fee" or "data fee." Then compare that to your total gains. If fees are eating more than 2% of your portfolio yearly, you’re paying too much.
Some brokers make it easy to track fees. Others bury them in emails or PDFs. You need to know exactly what you’re paying—not just for trades, but for holding positions, withdrawing cash, or using margin. The brokerage fees you see advertised are often just the tip of the iceberg. The real cost comes from the sum of every charge, every month, every year. And if you don’t measure it, you can’t fix it.
Below, you’ll find real breakdowns of how fees impact returns, which brokers charge what, and how to cut costs without sacrificing tools or service. You’ll see exactly how much you’re losing to hidden charges—and how to stop it.
