No Fee Brokerage Firms Overview
In recent years, investors have been demanding fewer fees from their brokerage houses. Firms have
responded by slashing a wide range of charges. This article will take a look at some of the specific
savings, and see which firms are truly no-fee brokers.
Fees
Just ten years ago, most brokers charged a host of fees. Establishing an IRA carried a fee, and
there was an annual fee for the retirement account as well. An account with a low balance was usually
charged something, and accounts with high balances would be charged an annual maintenance fee.
Traders who didn't have sufficient activity would also be assessed a fee. Brokers would also charge
a fee just for closing an account.
Today, this landscape is changing and has already changed quite a bit. Many brokers, although not
all, have eliminated a lot of these fees. And there is now an expectation among investors that
brokerage houses shouldn't charge unnecessary fees.
Several brokers in particular have taken the lead in reducing or eliminating excessive charges. Here's
a rundown on some of them.
Firstrade
Firstrade Securities offers the ultimate no fee account. Not only there are no account fees but there are also no brokerage
commissions. That's right - you pay $0 commission on all stock, ETF, options and mutual funds trades.
No other broker managed to offer so many $0-commission products as Firstrade.
Learn more in
Firstrade review.
Firstrade No Fee Account
3% match on contributions and 2% on transfers with a No-Fee IRA.
Open Firstrade Account
Fidelity
A brokerage account can be setup at Fidelity with any balance, and the broker doesn't assess any fees. There is no annual or inactivity fee for a regular brokerage or retirement account with the firm. However, Fidelity does charge a $50 fee for closing an IRA. Paper statements can be selected for any account free of charge. While the broker's advanced desktop system does carry active trader requirements, cash management tools are free, and ATM charges are refunded.
Fidelity does not charge trading fees for stocks and ETFs. It does, however, charge
$49.95 on most mutual funds and 65 cents on option contracts.
Learn more in
Fidelity Investments review.
Schwab
A Schwab brokerage account comes with no special fees. The broker has waived all maintenance,
inactivity, low-balance, and annual charges. thinkorswim, the broker's advanced desktop platform, now
does not require any account balance. An IRA is free to setup and maintain, and there is no charge to close one. Free checks and a Visa card are available, and ATM fees are reimbursed.
Like Fidelity, Charles Schwab has no commissions on stock and ETF trades. The broker
charges $49.95 on most mutual funds purchases and 65 cents on option contracts.
Learn more in
Charles Schwab review.
Charles Schwab No Fee Account
Satisfaction guarantee and $0-fee trades at Charles Schwab.
Open Schwab Account
Robinhood
A Robinhood brokerage account carries no special fees. There are no annual, maintenance, or inactivity fees. The broker does not require a
minimum balance for any account. Establishing an IRA carries no charge, nor is there an annual fee for one.
There is also no fee, account minimum, or trading requirements to use the broker's desktop platform. The company has the lowest commissions in
this list along with Firstrade.
Learn more in
Robinhood review.
Robinhood No Fee Account
Up to $200 free stock + 1% IRA match + transfer fee refund at Robinhood.
Open Robinhood Account
No Fee Brokerage Accounts Summary
As more and more brokerage houses move towards a no-fee structure, traders will have a larger selection of firms to choose from. While many brokers have eliminated
fees in certain areas, they still must find a way to be profitable; so they inevitably will impose fees in some cases. The most common charges at no-fee brokers
nowadays is closing an IRA or requesting paper documents.
Updated on 1/6/2025.