Do stocks have fees? A practical guide

Do stocks have fees?

Yes — buying, selling, holding and managing stock investments can involve a variety of fees and costs charged by brokers, exchanges, funds, and service providers. In this guide we answer the core question “do stocks have fees” and map the fee types most investors encounter: transaction costs, account and service fees, fund expenses, regulatory charges, and security‑specific fees. You will learn who collects these fees and why, how fees are disclosed, the real meaning of “zero‑commission” offers, and practical strategies to reduce fee drag on long‑term returns.

As of January 29, 2026, according to Cointelegraph, Bitpanda expanded into stocks and ETFs—an example of multi‑asset platforms adding traditional securities. When comparing platforms, consider total cost (fees plus execution quality) and prefer regulated, transparent providers. For trading and custody, Bitget offers multi‑asset services and a compliant environment for investors who want to manage traditional and digital assets in one place.

Overview of who charges fees and why

Multiple parties collect fees connected to stock investing. Knowing each party helps explain where costs come from and how they affect your returns.

• Broker‑dealers: charge for trade execution, account services, margin, and other functions.
• Exchanges and market centers: collect fees for listing, routing and market operation; these can be embedded or visible on confirmations.
• Mutual funds and ETFs: charge ongoing operating expenses (expense ratios) and sometimes distribution fees.
• Custodians and clearing firms: charge custody or transfer fees, especially for institutional or specialty accounts.
• Advisors and wealth managers: collect advisory or management fees (flat or percentage of assets under management).
• Regulators and clearing bodies: impose small transaction or regulatory fees that ultimately affect investors’ costs.

Why do these fees exist? They pay for trade execution, market infrastructure, regulatory compliance, custody and record‑keeping, fund operations, and advice. Even when a broker advertises low or zero commissions, other charges or spread costs can still apply.

Common categories of stock-related fees

Below are the major categories investors should watch for when asking “do stocks have fees”—each category can influence short‑term trading costs and long‑term returns.

Transaction fees / Commissions

Traditionally, brokers charged commissions per trade or per share. Today many online brokers have eliminated explicit commissions for US-listed stocks and ETFs, marketing “$0 trades” to retail customers. However, commissions still exist in several contexts:

• Full‑service brokers and discount brokers offering premium services may charge per‑trade commissions.
• Some brokers charge per‑share fees for very small trades or for markets outside major US exchanges.
• Buying and selling mutual funds (not ETFs) can carry purchase or redemption fees or sales loads.
• International or foreign stock trades commonly still incur commissions and minimums.

Even when commissions are $0, ask for the full fee schedule. Commissions are only one part of transaction cost.

Bid–ask spreads, markups and market impact

A trade executed through the market typically crosses the bid–ask spread. The spread is an implicit cost: buying at the ask and selling at the bid incurs a loss equal to the spread (unless you capture a better price). Key points:

• Low‑liquidity stocks have wider bid–ask spreads, increasing implicit costs.
• Large orders can move the market (market impact), raising average execution cost.
• Dealers or market makers may apply markups on off‑exchange executions.

Therefore, even if a broker advertises commission‑free trading, you may still pay in the form of wider spreads or less favorable execution—so total cost matters more than the headline.

Exchange and regulatory fees

Some exchanges and regulators assess fees linked to trade activity. These can appear as separate line items on trade confirmations or be embedded in execution pricing. Examples include:

• Exchange fees for routing, access or maker/taker rebates.
• Regulatory transaction fees assessed by securities regulators or clearing agencies.
• Small assessment fees that fund investor protection programs.

These amounts are usually small per trade but add up for high‑frequency trading.

Account and service fees

Brokers and custodians may charge non‑transaction fees, such as:

• Account maintenance or platform fees (charged monthly or annually).
• Inactivity or dormancy fees for accounts that fall below a trade threshold.
• Paper statement and mailing fees if paper documentation is requested.
• Account transfer (ACAT) or account closure fees when moving assets to another broker.
• Wire transfer and expedited processing fees.

These charges can be significant for small or infrequently traded accounts. Read the broker’s fee schedule carefully before opening an account.

Advisory and management fees

Professional advice costs money. Registered investment advisors, wealth managers, and robo‑advisors typically charge either a flat fee or a percentage of assets under management (AUM). Typical ranges:

• Human advisors: often 0.5%–2.0% of AUM annually, depending on service level.
• Robo‑advisors: lower percentage fees, commonly 0.25%–0.60% AUM, plus underlying fund expenses.

Advisory fees compound with fund expenses and trading costs, so factor all layers when evaluating net return.

Fund and ETF fees (expense ratios and 12b‑1 fees)

Mutual funds and ETFs charge annual operating expenses described as the expense ratio. These fees are deducted from fund assets and reduce returns without a direct debit to your account. Additional fund charges include:

• Sales loads (front‑end or back‑end) for some mutual funds.
• Redemption or purchase fees for short‑term trading within a fund.
• 12b‑1 fees: distribution and marketing fees historically common in some mutual funds.

Expense ratios vary widely: index ETFs often have ultra‑low expense ratios (under 0.10%), while actively managed mutual funds can charge 0.5%–2% or more. Over time, higher expense ratios materially reduce investor returns.

Options, fixed-income and other security-specific fees

Different product types have product‑specific fees:

• Options: per‑contract fees plus base trade fees are common, and exchanges may add per‑contract clearing fees.
• Bonds: dealers often apply markups or markdowns instead of transparent commissions.
• Alternative products: structured products, closed‑end funds and derivatives may embed complex fee structures.

If you trade beyond simple equities, check the per‑contract and per‑trade fees carefully.

Margin interest, securities lending and borrow fees

Using borrowed funds or shorting stocks introduces additional costs:

• Margin interest: charged on borrowed cash, typically quoted as an annual rate that compounds daily. Rates vary by broker and loan size.
• Short borrow fees: when shorting a security, the broker may charge a borrow fee if the stock is hard to borrow. These fees can be significant and variable.
• Securities lending can also affect dividend treatment and cost for both lenders and borrowers.

Accounting for these costs is essential when using leverage or short positions.

Foreign market and currency conversion fees

International trading often adds another layer of cost:

• Currency conversion spreads and FX fees when trading non‑USD securities.
• Foreign exchange commissions or pass‑through FX costs.
• ADR or foreign custody fees for American Depositary Receipts (ADRs).

These charges can erode returns for investors who trade global markets or hold foreign securities.

How fees are calculated and presented

Fees use different billing structures and disclosure vehicles. Common formats include:

• Flat per‑trade fees: a fixed charge per transaction.
• Per‑share fees: charged per share traded.
• Percentage of trade value: e.g., a small percentage of the trade amount.
• Percentage of AUM: advisory or management fees charged annually.
• Expense ratio: annual percentage deducted from fund assets.

Where to find them:

• Broker fee schedules and pricing pages (often a section titled "pricing" or "fees").
• Mutual fund and ETF prospectuses and fund fact sheets for expense ratios and 12b‑1 fees.
• Advisor disclosures: Form ADV and Form CRS show advisory fees and conflicts.
• Trade confirmations and account statements: list executed price, commissions, exchange/regulatory fees and net amounts.

Regulations require clear disclosure, but read both the headline and the fine print to understand embedded or indirect costs.

“Zero‑commission” brokers — what that really means

Many brokers advertise commission‑free trading for US stocks and ETFs. That reduces explicit per‑trade charges but does not mean trading is free:

• Payment for order flow (PFOF): brokers may sell order flow to market makers in exchange for execution payments. That practice can affect execution quality and spread capture.
• Interest on client cash: brokers earn interest on uninvested cash and may share some yield with customers.
• Margin and lending: brokers generate revenue by lending securities and charging margin interest.
• Premium or subscription features: advanced order types, research, and margin tiers may be behind paywalls.
• Spread capture and routing: execution routing choices affect effective cost even with $0 commissions.

Regulators have scrutinized PFOF and execution quality. When evaluating a commission‑free broker, ask about average execution price versus NBBO (national best bid and offer), and check trade confirmations and best‑execution disclosures.

The impact of fees on investment returns

Fees reduce return both directly and through compounding. A small annual fee can significantly reduce a long‑term portfolio’s value. Example (qualitative):

• A 1.0% annual fee on a portfolio that averages 6% pre‑fee reduces after‑fee return to roughly 5% and over decades materially lowers the ending balance.
• Fund expense ratios and advisory fees stack: a 0.5% advisory fee plus a 0.40% fund expense ratio is a 0.90% total drag.

Even small differences in fees matter for buy‑and‑hold investors. Use fee calculators and total cost comparisons (not just headline commissions) to evaluate long‑term effects.

How to compare and shop for fees

Ways to compare providers and funds:

• Read broker fee schedules and fund prospectuses carefully.
• Use independent fee comparison tools and fund analyzers to compare expense ratios and total costs.
• Check trade execution quality metrics and best‑execution reports.
• Ask about hidden or indirect charges like PFOF, routing practices, and cash sweep rates.

Watch beyond headline numbers: service quality, tax features, order types, account protections, and ancillary fees can change the economics.

When multiple platforms offer similar prices, platform reliability, customer service and custody arrangements can justify small differences in fee structures.

Strategies to minimize fees

Practical steps investors can take to lower costs:

• Use low‑expense index funds and ETFs for diversified exposure.
• Choose commission‑free brokers for US stocks and major ETFs, but factor in execution quality and indirect revenue sources.
• Avoid frequent trading; turnover increases transaction and spread costs.
• Use limit orders on illiquid names to control execution price and reduce spread cost.
• Consolidate accounts to meet fee waivers or better pricing tiers.
• Use DRIPs or direct purchase plans when available to avoid trading fees on reinvested dividends.
• Negotiate fees with advisors or consider passive robo alternatives if cost is a main concern.
• For international trades, consider ADRs or local listings that minimize currency conversion costs if appropriate.

A fee‑aware investment plan aligns product choices (ETFs vs. mutual funds), trading frequency, and account type with cost minimization.

Considerations by investor profile

Fee relevance depends on the investor type:

• Day traders / active traders: transaction costs (spreads, per trade fees) and platform latency matter most.
• Frequent traders: commission‑free offers help, but execution quality and order routing are critical.
• Buy‑and‑hold investors: expense ratios and advisory/AUM fees have the biggest long‑term impact.
• Small‑balance investors: flat account or inactivity fees can disproportionately harm returns.
• Institutional investors: negotiated scale discounts, exchange fees and custody fees dominate.

Retirement accounts versus taxable accounts: tax efficiency and fund turnover can affect after‑tax returns. Look for tax‑efficient funds in taxable accounts and low‑cost retirement plan options where employer subsidies exist.

Regulatory and disclosure framework

Regulators require disclosure of fees to protect investors. Key disclosure vehicles and resources include:

• Broker disclosures and pricing schedules: list commissions, margin rates and ancillary fees.
• Form ADV and Form CRS for registered investment advisors: show advisory fees and conflicts.
• Mutual fund and ETF prospectuses and the SEC’s fund profile: list expense ratios and fees.
• FINRA and SEC investor education pages: explain fees, best execution and PFOF.

Use these official resources to verify fee claims and compare providers. Regulators also publish investor alerts and enforcement actions related to undisclosed fees and execution quality.

Frequently asked questions (FAQ)

Q: Are US stock trades always free?

A: No. While many brokers offer $0 commissions for US stocks and ETFs, other costs (spreads, order routing, margin, and account fees) can apply. When asking “do stocks have fees,” remember that execution and ancillary charges may still exist.

Q: Do ETFs have fees?

A: Yes. ETFs have expense ratios that cover fund operating costs. Expense ratios are expressed annually and are deducted from fund assets, reducing returns. Some ETFs also have bid–ask spreads and trading commissions in certain markets.

Q: What is a 12b‑1 fee?

A: A 12b‑1 fee is a legacy mutual fund distribution and marketing fee charged annually. It appears in some mutual fund expense ratios and is meant to cover marketing and shareholder servicing costs. Many low‑cost funds have reduced or eliminated 12b‑1 fees.

Q: How does payment for order flow affect me?

A: Payment for order flow (PFOF) is revenue brokers receive for routing customer orders to market makers. PFOF can subsidize zero‑commission trading, but it may create conflicts that affect execution quality. Regulators require disclosures about PFOF; compare execution statistics and best‑execution policies.

Q: Do stocks have fees if I hold them long term?

A: Holding a single stock does not incur an ongoing holding fee, but fees can arise from dividends (withholding taxes), custodial charges, advisory fees, and fund or account maintenance fees. Fund investors pay ongoing expense ratios.

Q: Is there a simple way to estimate all fees?

A: Add explicit trading costs (commissions and per‑contract fees), implicit costs (average spread), fund expense ratios, and advisory percentages to estimate total annual cost. Many calculators and fund analyzers can help quantify the total expense ratio plus trading costs.

See also

• Brokerage account
• ETF
• Mutual fund expense ratio
• Payment for order flow
• Margin trading
• FINRA
• SEC investor education

References and further reading

Sources used to compile this guide and recommended reading for fee disclosures and comparisons:

• FINRA — Fees and Commissions (FINRA investor education)
• SEC / Investor.gov — Understanding Fees and Costs
• Investopedia — Articles on brokerage fees, spreads, and fund costs
• Vanguard — Fund and ETF fees and pricing materials
• Fidelity — Brokerage and fund fee schedules
• Consumer finance outlets summarizing zero‑commission market changes (NerdWallet, CNBC)

Press coverage on multi‑asset platforms and stock trading offerings:

• As of January 29, 2026, according to Cointelegraph, Bitpanda launched trading for thousands of stocks and ETFs with a simplified cost model; the announcement highlighted a flat fee per trade for those markets and no custody fees. That development illustrates how digital platforms are integrating traditional securities and emphasizes the importance of comparing full cost and service models when choosing a provider.

(For transaction‑specific details, consult broker fee schedules and individual fund prospectuses.)

Further note: fee schedules, Form ADV, Form CRS and fund prospectuses are primary documents for verifying specific charges. Broker confirmation statements and account statements list executed prices, commissions and regulatory fee line items for each trade.

Practical checklist: evaluating total cost before trading

1. Review the broker’s full fee schedule and margin rate table.
2. Check fund prospectuses for expense ratios and 12b‑1 fees.
3. Inspect trade confirmations for exchange/regulatory fees and execution price.
4. Ask the broker about order routing, PFOF and average execution quality statistics.
5. For international trades, estimate FX spreads and conversion fees.
6. For leveraged or short positions, estimate margin interest and borrow fees.
7. Compare total annualized costs (AUM fees + fund expenses + average trading costs).

How Bitget fits the multi-asset and fee conversation

Multi‑asset platforms that combine crypto and traditional markets are changing how investors access securities. If you prefer an integrated app with regulated custody and clear fee disclosures, evaluate options carefully. Bitget provides a compliant, multi‑asset environment and transparent fee disclosures for users who want to trade both traditional and digital assets in a single interface. When considering any platform, ask for a complete fee breakdown and compare total cost and service levels.

More on timing and fee transparency (regulatory context)

Regulators have increased transparency requirements around execution quality and order routing. Broker disclosure documents and regulator guidance explain how fees and routing practices affect investors. Investors should periodically review their broker’s best‑execution reports and any Form ADV or Form CRS updates from advisors.

Final notes and how to proceed

Do stocks have fees? Yes — but the costs vary by product, provider and investor behavior. Focus on total cost (explicit and implicit) rather than just headline commission numbers. For long‑term investors, fund expense ratios and advisory fees are the largest drivers of fee drag. For traders, spreads and per‑trade costs matter most.

If you want to explore platform options or a consolidated multi‑asset experience, consider regulated providers with clear fee disclosure and strong execution records. Learn more about account types, fee schedules and order execution by checking broker pricing pages and fund prospectuses before you trade. To manage both crypto and traditional securities in one place, explore Bitget’s multi‑asset capabilities and transparent pricing.

Explore more practical guides and tools to compare fees, and review official disclosures (broker fee schedules, Form ADV/CRS, and fund prospectuses) to verify costs for your specific use case.

Report date: As of January 29, 2026, based on public reporting and platform disclosures referenced in this article.