How Much Does It Cost to Invest in 2021? Here is What You Need to Know

If you are looking to start investing your money, you may wonder how much it costs to invest, from the not so simple fees associated with investing to the costs of getting started.

You may need to pay several different fees when investing, so we've broken down the most common ones below. 

Platform/Brokerage Fee

Brokerage fees can come in different forms, so it is good to research your broker before committing to any account. 

Account Maintenance Fee

This can be in the form of either a monthly or an annual fee. In addition, you are charged for the maintenance of your account Or any subscriptions for premium research or investing data. You can even be charged for inactivity, so good first to understand how often you plan to invest. You can generally avoid brokerage account fees by choosing the right broker.

Trade Commission

This is also called a stock trading fee, and this is a brokerage fee charged when you buy or sell stocks. You may also pay commissions or fees for buying and selling other investments, like options or exchange-traded funds. Some platforms now offer 0% commission fees, but the investment rate isn't always as good.

Sales Load

This is not often in most cases, but it still does happen. A sales load is paid on some mutual funds sold by the broker who sold you the fund. It would help if you were wary of these charges as most mutual funds today don't have these, and remember, the broker is trying to sell these to you because they get a commission. So be sure to make sure the fund is right for you!

Expense Ratio

This is an annual fee charged by mutual funds, index funds, and exchange-traded funds as a percentage of your investment in the fund. The charge is to manage the fund.