Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

Do You Understand the Fees Your Broker Is Charging?

Understanding investment and broker fees can protect investments and increase returns. Investment expenses have a big impact on financial returns, especially over a long period of time.

Common Investment Fees

Common investment and brokerage fees are charged on a variety of different accounts including brokerage accounts, mutual funds, stock trades, and retirement accounts. Management advisory fees and sales loads are also charged on many types of accounts. Investment and brokerage fees can have a big impact on returns, so it's important to understand the fees being charged on all investment accounts.

Most fees are paid annually, and are automatically deducted from an account. If investors don't regularly examine statements, losses to fees may come as a big surprise. An investment fraud attorney often sees clients who have paid thousands of dollars in fees on various accounts. Annual investment fees can range from .25% up to 2% of the account value. Over a 30 year period, an annual fee of 1% can cost an investor almost $100,000.

Avoiding Investment Fees

When working with a broker, choosing an online broker that doesn't charge annual fees can increase returns. Annual brokerage fees can range from $50 to $75 per year, but brokers may charge different fees for different types of accounts. Some brokers or advisors charge a percentage of the total amount invested. When stocks are purchased or sold, discount brokerage houses may charge as little as $5 per trade, while full-service brokers may charge up to $200 per trade. For investors who trade infrequently, it's best to set up an account that doesn't assess inactivity fees.

Loaded mutual funds charge fees to the investor that compensate the broker who handles the mutual fund activity.

  • Front-end loads – Funds with front-end loads have upfront fees or sales charges that are subtracted from initial investment funds.
  • Back-end loads – Funds with back-end loads do not charge upfront fees. Fees are charged when shares in the fund are sold. Fees are higher if funds are sold within the first year, and decline each year thereafter. Back-end loads make it harder for investors to know what they're paying in fees.
  • Level loads – There are no upfront fees or sales charges, but a 1% fee is usually assessed if shares are sold within the first year.

Investors can prevent investment fraud often seen by an investment fraud attorney and protect returns by understanding account fees and other important account information. Investment and broker fees can reduce returns.

Related Posts:

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram