Advertisement
Get the Lowest Margin Loan Rates at Interactive Brokers

What are the average brokerage fees?

What are the average brokerage fees?

Online stock brokerages charge fees for their services, which usually include fees or commissions charged when you trade (buy or sell products such as stocks or funds), and fees that are not related to your trading activity, called non-trading fees. Typical brokerage fees vary depending on the kind of brokerage, with an increasing number of discount brokers offering commission-free trading, while others charge commissions per trade or based on trading volume. Let's take a closer look at the average fees on the market.

Average brokerage fees
The essence

  • The average brokerage fee is around $5-15 per trade, when taking into account all brokers.
  • Some brokers do not charge any fees for trading. When we exclude them, the average brokerage fee comes to around $10.
  • You can use a brokerage fee calculator to easily compare brokerage fees.

Average brokerage fees
What is the average brokerage fee?

At global online discount brokers, the average you will pay as a trading fee for stocks and exchange-traded funds (ETFs) comes to around $5-15. Of course, exact fees vary by broker, and there are also usually discounts for trading higher volumes.

As brokerages have different methods of calculating fees and commissions (e.g. no fees up to a limit, whether there is a minimum fee, whether trades are charged per share or by volume), it can be difficult to compare brokerage fees. At BrokerChooser, we use a $2,000 trade as an example, and calculate and compare fees based on that.

Currently, the average fee for trading US stocks at the more than 100 brokers covered by BrokerChooser is around $5. When we exclude commission-free brokerages and look at only brokers that charge a commission, the average stock fee comes to around $10.

For UK and German stocks, the respective figures are an $11 average considering all brokers and $13-14 when we exclude zero-commission brokerages.

Average brokerage fees
Which brokerages do not charge fees?

As mentioned above, an increasing number of brokerages have started offering commission-free trading in recent years, charging no fees for trading stocks or ETFs. This can save you a lot of money on transaction costs, but be aware that even though you may not be charged for trading, you may and most often will be charged other fees and costs. You can also read more about how some zero-commission brokers make money by selling your order flow.

Some of the brokers that offer commission-free trading are Interactive Brokers, Webull, Fidelity, TD Ameritrade, E-Trade, eToro, Charles Schwab and Robinhood.

Average brokerage fees
Compare brokerage fees

A good way to see how much brokerages charge in fees and commissions is to use a tool called a brokerage fee calculator. Check out BrokerChooser’s own brokerage fee calculator to calculate exactly how much you will pay in trading fees at a given brokerage, or see which brokerages have the best offer for your planned stock trade.

 

Further reading:

Author of this article

Tamás Deme

Author of this article

Tamás believes in clear and simple writing that is accessible to everyone. He has more than 20 years of experience as a financial journalist, as well as an editor and proofreader. He previously worked at Interfax news agency and wrote about M&A deals for EMIS DealWatch.

Tamás Deme

Content Editor

Tamás believes in clear and simple writing that is accessible to everyone. He has more than 20 years of experience as a financial journalist, as well as an editor and proofreader. He previously worked at Interfax news agency and wrote about M&A deals for EMIS DealWatch.

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

Share

Comments

×