Is Passfolio free?

Passfolio is in fact a zero-commission broker when it comes to buying and selling US stocks. Zero commission is especially useful if you trade relatively low volumes, like buying stocks for less than $500 per trade, because you won't be hit with any minimum fees the broker might charge.

We should note that the payment-for-order-flow model, which is used by some zero-commission brokers to generate income (rather than relying on commissions), could potentially create a conflict of interest between you and your broker. This could result in trade execution (like routing your orders to specific market makers) that might be unfavorable for you under certain market conditions, especially when using market orders (as opposed to limit orders, which seem to be less affected).

Keep in mind that at some brokers, you could incur non-trading charges like withdrawal or inactivity fees. If you want to trade options, bonds or futures, then a transaction fee may also apply. Also, if you trade on margin, the margin rate charged by brokers can differ wildly. In the next chapter, we'll find out what these charges are at Passfolio and how they compare with fees charged by its closest competitors.

If you want to read our full review, including fees, deposit options and other platforms (like web and desktop) then skip to the Passfolio review.

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Passfolio fees
Overview of Passfolio fees and charges

It's safe to say that Passfolio's fees are low in general. They either don't charge a brokerage fee for things that other brokers do, or they only charge a small amount.

Here's a high-level overview of Passfolio's fees

Passfolio Fees snapshot
Assets Fee level Fee terms
US stock fee Low Commission-free stock trading, but securities less than $5 cost $0.02/share
EURUSD fee - Not available
US mutual fund fees - Not available
Inactivity fee Low No account fee

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Passfolio fees
Passfolio fees explained

Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely because 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 5,000 clients.

This is not to say, however, that they don't charge any fees at all. They make money by charging you various rates for various actions or events. Usually you need to keep an eye on the following three types of fees:

  • Trading fees - these are brokerage fees that you pay when you actually carry out a trade, like buying an Apple share or an ETF. What you pay is either a commission, a spread or a financing rate. Some brokers apply all of these.
    • A commission is either fixed or based on the traded volume.
    • A spread is the difference between the buy price and the sell price.
    • A financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
  • Non-trading fees. These are usually related to some operations you carry out in your account, such as depositing money, withdrawing money, or not trading for an extended period.

We compare Passfolio fees with its closest competitors, Revolut and SoFi Invest.

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Passfolio fees
Passfolio trading fees

Passfolio's trading fees are low, which makes it suitable for you even if you trade often (i.e. several times a week).

Let's break down trading fees according to the different asset classes available at Passfolio.

Trading fees

Passfolio's trading fees are low.

Stock fees and ETF fees

Passfolio has low stock trading fees.

Stock fees of a $2,000 trade
Passfolio Revolut SoFi Invest
US stock $0.0 $1.0 $0.0
UK stock - - -
German stock - - -

Margin rates

Passfolio margin rates are high.

Passfolio margin rates
Passfolio Revolut SoFi Invest
USD margin rate 8.3% - -
EUR margin rate - - -

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Passfolio fees
Passfolio non-trading fees

Some of Passfolio's non-trading fees are average.

Non-trading fees include various brokerage fees and charges at Passfolio that are not related to buying or selling assets. This can be a withdrawal fee, deposit fee, inactivity fee or account fee.

A high-level overview of how Passfolio stacks up in terms of non-trading fees
Passfolio Revolut SoFi Invest
Withdrawal fee $0.25 $0 $0
Deposit fee $0 $0 $0
Inactivity fee No No No
Account fee No No No

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Passfolio fees
Passfolio deposit fee

Usually, brokers don't charge anything for deposits, and Passfolio is no different.

Passfolio deposit methods
Passfolio Revolut SoFi Invest
Bank transfer Yes Yes Yes
Credit/debit card No Yes No
Electronic wallets No Yes No
Deposit fee $0 $0 $0

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Passfolio fees
Passfolio withdrawal fee

Unfortunately, Passfolio does charge a withdrawal fee of $0.25 for bank transfers. This means that you need to pay this amount when you transfer money from your brokerage account back to your bank account. Sometimes this is a flat fee, but a percentage charge may be applied in some cases. It's up to you to decide whether you can tolerate this, keeping in mind that flat fees can hurt more if you withdraw small amounts only.

Passfolio withdrawal fees and options compared
Passfolio Revolut SoFi Invest
Bank transfer Yes Yes Yes
Credit/debit card No Yes No
Electronic wallets No Yes No
Withdrawal fee for bank transfer $0.25 $0 $0

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Passfolio fees
Passfolio inactivity fee

Passfolio does not apply an inactivity fee, which is great because your account won't be charged even if you do not trade for an extended period (like several months or years).

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Author of this article

Bence András Rózsa

Author of this article

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Bence András Rózsa

Broker Analyst

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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