What are typical brokerage account fees?

Most major U.S. online brokers now charge $0 commissions on stock and ETF trades following industry-wide cuts in 2019–2020. However, brokerage accounts still carry expense ratios on mutual funds and ETFs (0.03%–1%+), options contract fees ($0.50–$0.65 per contract at most brokers), mutual fund transaction fees, and potentially account transfer or inactivity fees. The $0 commission era doesn't mean free — it means costs shifted to other mechanisms.

The brokerage fee landscape changed dramatically in October 2019, when major online brokers eliminated stock and ETF trading commissions. Before that, $4.95–$9.99 per trade was standard. Today, the main costs in a standard brokerage account are the underlying fund expense ratios, options contract fees, and less-obvious charges like payment for order flow (PFOF) — a form of indirect cost on trades.

Where costs still exist

Stock and ETF trades: $0 per trade at most major online brokers.
Options contracts: $0.50–$0.65 per contract at most major online brokers (the commission to open or close an options position). Some charge a per-leg fee on complex spreads.
Mutual fund transactions: Brokerage-sold funds that aren't on the no-transaction-fee (NTF) list can cost $9.95–$49.99 per buy/sell — check if a fund is on the NTF list before transacting.
Fund expense ratios: Paid inside the fund, not billed to your account — but they reduce returns. Ranges from 0.03% (index ETFs) to 1.5%+ (actively managed funds). This is the largest ongoing cost for most investors.
Account transfer (ACAT) fee: $50–$75 to transfer assets out to another broker — standard industry charge.
Inactivity fee: Rare at major brokers now but still exists at some smaller platforms — typically $20–$50/year if no trades are placed.
Margin interest rate: If you borrow on margin, brokers charge interest — rates vary from 3%–10%+ depending on balance and broker. FINRA's margin rules govern margin borrowing.

Payment for order flow (PFOF)

When a broker executes your stock trade at $0 commission, they often route your order to a market maker who pays the broker a small fee for that order flow. The SEC has studied PFOF and notes it creates a potential conflict of interest: the broker may not route to the venue with the best execution price for you. The SEC proposed but has not yet finalized rules to restrict PFOF. In practice, for small retail trades on liquid stocks, price impact is typically minimal — but it's worth understanding.

Full-service vs. online discount brokerage

The $0 commission revolution applies to discount/online brokers. Full-service brokers (where a human advisor actively manages your account) charge AUM-based fees (0.5%–1.5% of assets annually) or per-trade commissions — see 'how much does a financial advisor cost' for that fee structure. The distinction matters: if you're comparing a robo-advisor at 0.25% AUM to a full-service advisor at 1%, the long-run difference on a $500,000 portfolio is substantial.

Regulatory sources

The SEC published a staff report in 2021 on equity and options market structure, including an analysis of payment for order flow and its implications for retail investors. — SEC — Equity and Options Market Structure Report
FINRA publishes rules on margin account requirements and borrowing limits, including minimum margin requirements for marginable securities. — FINRA — Margin

Key takeaways

Stock/ETF trades: $0 commissions at most major online brokers since 2019–2020.
Options: $0.50–$0.65 per contract — still a meaningful cost for active options traders.
Fund expense ratios (0.03%–1.5%) are the largest ongoing investment cost — choose index funds to minimize them.
ACAT transfer fees ($50–$75) apply when moving assets to another broker.
Payment for order flow is a real but small indirect cost — minimal for small retail trades on liquid stocks.

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