Overview of ChoiceTrade fees and charges
It's safe to say that ChoiceTrade's fees are low in general. They either don't charge a brokerage fee for things other brokers do charge for, or they only charge a small amount. This means that you can use ChoiceTrade even in case you trade frequently like multiple times a week or daily.
Here's a high level overview of ChoiceTrade's fees
|Assets||Fee level||Fee terms|
|US stock fee||Low||Stocks above $1 have no commission, while unlisted or stocks below $1 have $7 per trade commission.|
|EURUSD fee||-||Not available|
|US tech fund fee||-||Not available|
|Inactivity fee||High||$35 per quarter if less than 5 trades in the previous quarter|
ChoiceTrade fees explained
Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely due to the fact that online brokerages' businesses can be much better scaled: From a purely technical standpoint it doesn't make that much of a difference for them if they have 100 or 5000 clients.
This is not to say however that they don't have any fees at all. They make money by charging you at various events for various rates. Usually you need to keep an eye on these 3 types of fees:
- Trading fees - these are brokerage fees that you pay when you actually do a trade, i.e. buying an Apple stock or an ETF. What you pay is either a commission, a spread or financing rate. Some brokers apply all of these.
- A commission is either based on the traded volume or it is fixed.
- A spread is the difference between the buy price and the sell price
- Financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
- Non-trading fees. These occur related to some operations you make in your account, i.e. depositing money to your account, withdrawing money from it or not trading for an extended amount of time.
We compare ChoiceTrade fees with its closest competitors, Tradestation and Interactive Brokers.
ChoiceTrade trading fees
ChoiceTrade's trading fees are low which makes it suitable for you even if you trade often (i.e. multiple times a week).
Let's break down the trading fees into the different asset classes available at ChoiceTrade.
ChoiceTrade's trading fees are low.
Stock fees and ETF fees
ChoiceTrade has low stock trading fees.
ChoiceTrade's options fees are low.
|US stock index options||$4.0||$10.0||$7.0|
|UK stock index options||-||-||$20.4|
|German stock index options||-||-||$12.1|
ChoiceTrade financing rates are .
If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.
|Apple CFD financing rate||-||-||4.3%|
|Vodafone CFD financing rate||-||-||1.7%|
|EURUSD financing rate||-||-||3.7%|
|EURGBP financing rate||-||-||2.3%|
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ChoiceTrade non-trading fees
When it comes to looking at all the non-trading fees ChoiceTrade is an expensive broker. This means that they tend to charge you a lot for non-trading related activities on your trading account, like withdrawal fee.
Non-trading fees include various brokerage fees and charges at ChoiceTrade that you pay not related to buying and selling assets. Among some others, typical non trading fees are withdrawal fee, deposit fee, inactivity fee and account fee.
ChoiceTrade deposit fee
Deposit fees are applied when you send money to your trading account from your bank account. Usually brokers don't charge money for that and ChoiceTrade is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods ChoiceTrade offers.
ChoiceTrade withdrawal fee
Unfortunately, quite like the majority of the online brokers we have reviewed ChoiceTrade does charge a withdrawal fee of $5 for the bank transfer. This means that you need to pay this amount of money when you transfer your money back to your bank account. It's up to you to decide whether this is a high amount or not as it's dependent mostly on the size of the transferred amount.
|Withdrawal fee with bank transfer||$5||$35||$0|
ChoiceTrade inactivity fee
ChoiceTrade does apply an inactivity fee and it is $35 per quarter if less than 5 trades in the previous quarter. This means that you need to be strategic about your trading activity to avoid getting charged after a longer time of no trade. The fact that ChoiceTrade charges an inactivity fee makes it less ideal for you if you are a buy and hold investor.
ChoiceTrade has high inactivity fee.
|Inactivity fee||$35 per quarter if less than 5 trades in the previous quarter||$50 USD per year if less than 2000 USD on balance or less than 5 trades per year.||$20 per month if you have less than $2,000 account balance and if you don't generate minimum $20 in commissions. $10 for accounts having at least $2,000 account balance, while no inactivity fee for US clients choosing IBKR Lite plan.|
Read more about ChoiceTrade inactivity fee on their own site.