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Rekenthaler Report

Upfront Investment Fees Are (Almost) No More

The evolution’s winners and losers.


Wasting Away
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 (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.