Upfront Investment Fees Are (Almost) No More
The evolution’s winners and losers.
Once upon a time, retail investors paid large entry fees.
In the 1970s, the average stock transaction, as measured by brokerage commission plus half the bid-ask spread, consumed about 1% of an investor’s stake. That percentage began to fall in 1975, when the SEC deregulated commission prices, but it did not disappear. When the 1990s began, for example, the average transaction was 0.50%.
John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.