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.
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