| Fees and commissions for online stock trading can | | | | transaction fee, plus a fee per contract. Mutual funds |
| add up fast, leaving investors scratching their heads | | | | in online trading firms typically have yet another |
| at where the money is going. Online trading fees and | | | | pricing structure, with some funds at a low fee while |
| commissions typically aren't a problem if you have an | | | | other funds rate a higher fee. The online trading fees |
| automatic investment plan set to make a few | | | | for mutual funds typically depend on whether they're |
| purchases per month, but if you're an active trader, | | | | load funds or no-load funds, and whether or not |
| all those transaction fees can get expensive. Before | | | | there's a transaction fee to buy into the funds. Bonds |
| you sign up with an online stock trading or online | | | | are typically traded on a net yield basis. |
| forex trading account, make sure you understand the | | | | Online trading account fees. |
| fees and commissions and how you're planning to use | | | | In addition to per-transaction commissions and fees, |
| the account. | | | | most online stock trading and online forex trading |
| Online trading transaction types and commissions. | | | | websites charge account fees. The most common |
| Most online trading firms charge different fees for | | | | type of account fee is a monthly membership fee, |
| different levels of service. You'll find a low fee for | | | | used to defray administrative charges. The monthly |
| Internet transactions, a higher fee for phone | | | | membership fee typically includes a limited number of |
| transactions and the highest fee for broker-assisted | | | | free trades, but be sure to look at the |
| transactions. When evaluating online trading fees, | | | | per-transaction fees to decide whether or not the |
| consider how you're likely to use the account. Are | | | | free trades truly represent a good value. |
| you comfortable placing orders through the Internet, | | | | Many online stock trading and online forex trading |
| or would you rather talk to a broker directly about | | | | accounts also have minimum account balance |
| your orders? This fee structure and how you plan to | | | | requirements. This can be a challenge if you're just |
| use your account plays a big role in which account is | | | | getting started with investing and don't have a lot of |
| best for you. | | | | money to commit in the beginning. If account balance |
| The other way in which fees are broken down are | | | | requirements are a problem for you, be sure to |
| by transaction type. Most online stock trading firms | | | | examine the account fees with a fine tooth comb to |
| charge a very low fee for basic stock trades; in fact, | | | | see what fees are assessed for going under the |
| one pricing method includes a few transactions for | | | | minimum account balance. You might want to look |
| free every month, after which you're charged for | | | | elsewhere for an online trading account if the |
| each individual transaction. If you use your online | | | | minimum balance presents an issue for you. |
| trading account for options, you're looking at a base | | | | |