Stock commissions at indy Firms
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I find I only make money selling annuities or fee based accounts.
For stock trades I charge $50 to $75 depending on the shares.
Should I be charging 2% of the investment? or
I feel I may be charging too little?
Are you an RIA?It appears that you are charging too little. If you work through a B/D, see if they have a stock commission model. We start at about 2.5% for the smallest trades ($50 min), and then scale down from there. It goes to like 2% at $10,000, 1.5% at $40,000, 1% at $100,000, etc. It bottoms out at like 0.85%. But we can also discount.
You are not at Charles Schwab; do not charge the same as if you were. Charge these people more, you are a professional and need to be paid like one. If people complain about the commission charges for trading stock out side a fee based account, tell them to take their business somewhere else.JackBlack
I usually charge around 1.5-2%. But most my trades are 5-25k and not all that frequent. If it’s not a top client and we’re buying and holding long term, I wont discount and it will be probably 2-2.5%. If you’re just charging a flat fee of $75 for 5k investment as well as a 20k investment, you may want to file as a 501c charity this tax year.