What are brokerage fees?

In rare instances, brokers may collect fees from both the insurer and the individual buying the insurance policy. In the financial securities industry, a brokerage fee is charged to facilitate trading or to administer investment or other accounts. The three main types of brokers that charge brokerage fees are full-service, discount, and online.

What is a brokerage account?

A brokerage account is an investment account held at a licensed brokerage firm. An investor deposits funds into their brokerage account and the brokerage firm transacts orders for investments such as stocks, bonds, mutual funds, and exchange-traded-funds (ETFs) on their behalf.

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.

How much do discount brokers charge?

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.