Should I Pay 1.75% in Fees on a Brokerage Account?

|
Advertisement

Welcome to Ask Clark, a column designed to answer your financial questions, by money expert Clark Howard.

Is 1.75% a Reasonable Rate for Fees on a Brokerage Account?

Muhammad in Colorado: “I’m trying to open a brokerage account and the company I’m using charges 1.75% in fees. Is that a reasonable rate?”

Clark’s Take on Whether You Should Pay 1.75% in Fees for a Brokerage Account

Clark says: ‘Ain’t no way: Not any day do you want to pay that kind of money.”

If you compare the brokerage accounts from different companies, you should be able to easily beat a 1.75% rate, Clark says, adding, “In fact, you should be able to open a brokerage account with a firm that gives you advice at a tiny fraction of that cost.”

Clark suggests that you take a look at the following investment firm reviews at Clark.com:

“Advice is available now starting at about 0.3%. And If you just need help in picking a portfolio, that costs as little as .15% in the marketplace.”

Want to learn more? Here are the best investment firms in 2021.

To hear Clark’s full take on this question, listen to the segment:

Do you have a question for Clark? Use this form to ask him! And remember that you can listen to the Clark Howard Podcast at any time here.

If you have a question but don’t want to go on the air, contact Clark’s Consumer Action Center for free money help.

More Investing Resources From Clark.com:

  • Show Comments Hide Comments