How much do stock brokers charge in commission per trade to buy or sell stocks in 2016?
What Stock Brokers Used To Charge To Buy or Sell Stocks
I remember during the internet stocks bubble in the late 1990s when the stock market was hitting new highs, and investors
were making fortunes on the stocks, everyone was excited about
Etrade. With Etrade you could pay a measly $20 brokerage commission
to buy or sell stocks! What a deal! Conventional stock brokers charged $80 commission for stock trades.
Then TD Ameritrade showed up on my radar and it charged only $15 to buy or sell
stocks. A bit later I've learned about Scottrade with their unheard-of $7 per
trade rate. Then Sharebuilder appeared and charged only $4 for their unique kind of trades - automatic investments at the end of the day on Tuesdays - which
many people hated. There were other low-priced online trading companies too, but many of them were bought up by bigger players
and few investors now remember their names.
Over the next few years most of us settled with our $7-$10 per trade online
brokers. We went through the stock market surge that
brought Dow to the new highs. Now we are healing the wounds of the biggest
recession in the last 80 years. We are wary of the stock market and still
worried about economy. And many of us do not know that prices on stock trades
kept falling all these years.
New Online Brokers
There are new, ambitious players in the discount online trading
world. These companies are young and nimble, and they charge much less
than the veteran online brokerage houses.
How about $5 per trade?
Unbelievable? The reality is that it can be that cheap to buy stocks, and most people do not realize it.
If you are a relatively active investor, I don't see any reasons to pay $15 or even $10 commission per trade to buy or sell stocks online.
There are online brokerages that are very highly rated by all financial magazines
and investor surveys that will charge you only $5 per
trade. I have been with TD Ameritrade since year 2000, paid diligently $10 per
trade, and when I discovered how much less the other companies charged, I was in
shock! I cannot believe I was overpaying my stock broker so much and for so
long! I transferred few of my accounts to the newer firms in 2009-2011, and the
experience has been great so far.
How Much Does Your Stock Broker Charges To Buy And Sell Stocks?
If you are paying over $7 for stock and ETF trades and over $20 for mutual funds,
I encourage you to research companies in Online brokerage comparison
article, such as TradeKing (review),
Optionshouse (review), and
Scottrade (review), and make more educated decisions
about where to invest. All these companies are members of SIPC and FINRA, and client accounts are protected and insured the same way as at the
older brokerage houses: $500,000 per customer, including up to $250,000 for cash.
Brokerage Commissions Charged To Buy or Sell Stocks
See above how much commission does TD Ameritrade, Charles Schwab, Etrade, Fidelity Investments, Scottrade, TradeKing, Vanguard and other stock brokers
charge per stock and ETF trade in 2016.
Updated on 6/3/2016.