I actually invested $2000 in stocks, and paid brokerage fees of 0.5% to the broker on both sides (buy & bell) or approximately $22.50 ($10 + $12.50 in commissions after a gain of $500).

So my question is if I invested, say, 1 billion dollars, would I still have to pay brokerage of 0.5% on both sides (brokerage on buying being 5 million dollars).

Do big investors like Warren Buffett pay any brokerage fees?

  • There are both full service brokers and discount brokers. Full service tend to be paid a percentage; discount a flat charge per transaction. Personally I have no further use for full service brokers, but I recognize that people who require hand holding should pay for the level of service they require. – user662852 Oct 25 '15 at 2:18

Other than the brokerage fee you should also consider the following:

  • if you trade in large amounts, you are not likely to capture the current share price as the trading pool will be too shallow
  • your trade might fall victim to HFT blackboxes which will make sure that you get the highest possible stock price

Some brokerages provide extra protection against the these and as you guessed it for a fee.

However, there could be a small bonus associated with your trading at scale:

You are probably qualified for rebates from the exchanges for generating liquidity.

"Fees and Credits applicable to Designated Market Makers (“DMMs”)" https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf

All in all, I will say that it will be really hard for you to avoid paying brokerage fee and yes, even Buffet pays it.

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