Isn't it true that the lower trade fee is better?

  • If your typical trade is in the vicinity of $100 then a $3 difference in cost might matter. If it's in the vicinity of $5000 it doesn't. May 22, 2016 at 2:12
  • The financial market people are simply mean. For what the sake of reasons, people felt so much compulsion to downvote my question? I don't get it. Even if it's a silly question, it is not ridiculous. This only shows that, there are always many narrow-minded suckers at some corner of this world.
    – Phil
    Jul 10, 2020 at 18:59
  • @PeteBecker if someone trades many times, it does matter. But, no, nowadays, no transaction fees anymore. It doesn't matter much.
    – Phil
    Jul 10, 2020 at 19:01
  • I am guessing the downvote were because the question didn't show evidence of having looked at past questions or tried to find answers yourself, and because it's so broad a question. Stack Exchange generally tends to be impatient with fuzzy questions, or ones that can be answered by websearching.
    – keshlam
    Jul 6, 2023 at 19:12

3 Answers 3


Lower fees are always better, everything else equal. A lower fee makes your transaction overall a better deal, all else equal. Other transactions costs (like the SEC fee on sales) are mostly the same across brokers and there is unlikely to be any difference in execution quality either. When comparing brokers be sure to consider the other issues:

  • Account minimums
  • Margin rates, if applicable
  • Any tickers that are free to trade (like, vanguard lets you trade vanguard ETFs for free. This is becoming a more common practice)
  • Ease of moving money in and out--amazingly some brokers still require physical checks
  • Annual account fees (rare, in online brokers)
  • Any asset classes that may not be allowed
  • Ease of unusual transactions, like purchasing a corporate bond

To me, most of these are minor issues. For that reason, I'd say let transaction cost be your guide.

I hear a lot of talk about the quality of the interface. If you just want to buy or sell a stock, they are all pretty easy. Some brokers have better tools for monitoring the market or looking at technical indicators, if you are into that.


Every brokerage is different, on all of their websites they have an actual list of fees. There are tons of different charges you may encounter.


That all depends on you. The cheaper places are certainly going to cost less, but when it comes to comparing value that is a subjective decision that only you can make. Maybe the more expensive one has an easier to user website, friendlier customer service, or something else you value enough to pay more for trades.

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