Holding shares can incur costs even when you aren't actively trading.
: Some brokers charge $50 to $200 annually for inactivity, low balances, or paper statements ($1–$2 per statement). cost of buying shares
: Some "free" brokers make money by sending your orders to third parties for execution, which can sometimes lead to slightly worse pricing for the investor. 3. Ongoing and Hidden Maintenance Fees Holding shares can incur costs even when you
: If you buy an ETF or mutual fund instead of individual shares, you pay an annual operating fee. These range from 0.03% for index funds to 2% or more for actively managed funds. : This is the difference between what a
: This is the difference between what a buyer pays (the ask) and what a seller receives (the bid). For liquid stocks, this is pennies, but for small-cap or "penny stocks," it can be a significant percentage of the trade.
For most retail investors today, the visible "sticker price" of a trade is lower than ever.
: Many major online brokers now offer $0 commissions for online listed stock and ETF trades.