Guides · Getting started
What fees do you pay when investing?
In short: The main costs are brokerage fees (each order), currency conversion for foreign stocks, the annual fees of ETFs and funds and sometimes custody fees. Over the long run they can cost more than a bad stock pick.
Per-trade costs
Brokerage fees (fixed or a percentage), currency conversion for foreign stocks, and in some countries a financial transaction tax on certain purchases.
Yearly costs
Custody or account fees at some brokers, and fund management fees (the TER). A fund charging 2% a year costs thousands more over 20 years than an ETF charging 0.2%.
How to reduce them
Trade less, group purchases, prefer cheap ETFs, compare currency rates. Frequent trading multiplies fees: it is one reason most traders lose.