Take our quiz on broker fees, expenses and compound interest
Investment fees are one of the more complicated things that investors need to learn about. When figuring out how to invest, it’s very important to consider costs — because even if you make a few bucks on a smart trade, an expensive investment fee structure could seriously eat into your returns.
It’s also worth noting that keeping costs down is crucial to small-time investors, since flat investment fees can result in a big part of your portfolio sometimes. After all, $100 may not seem like a lot to a millionaire, but when you’re trading in lots of just $1,000 or so… that’s 10% of your total investment on a given trade!
Succeeding in the market takes a combination of nerves, math skills and curiosity. And while it’s important to apply those skills to finding the right stocks or ETFs to purchase for a gain, it’s equally important to learn how to use your brain and keep investment fees as low as possible.
That’s true for those just learning how to invest, as well as those who are veterans but perhaps not as attuned to the burden of investing costs as they should be.
There are are a wide variety of investment fees out there. Do you understand how they are affecting your performance, and whether they are bleeding you dry?