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What fees and costs are there associated with investing

Unfortunately, investing is not only about making money and profit.There are often some fees and costs which are also associated with investing, and you will want to be aware of those before making any type of investment.Often, fees and costs are not itemized on your investment statement.Furthermore, they are deducted from your total investment gains (or losses) before even being posted to your account or statement.Therefore, it is a good idea to know what you are paying, especially since the money may not be listed on your statement for you! Here is a list of the fees and costs that are associated with investing:

1) Trading Costs - When trading stocks or bonds between different companies, individuals, and brokerages, there is a trading fee which often involved.This fee is similar to transfer fees that are used in conjunction with mutual funds (see below).One way to minimize the fees and trading costs associated with investing is to trade as little as possible.This way, you will never have to worry about your trading costs!

2)Investment fees: There are different types of investment fees, and they will differ between each company and type of investment.One type of investment fee goes toward paying investment managers.Investment fees can also go towards paying for monitoring investments, and related management costs.Some companies charge a fee which is contingent upon your assets, meaning that a percentage of your assets will be charged depending on what (or how much) that the company manages for you.In addition, many investment companies will charge you for investment consultation, legal advice, and other advisory services.These services are offered in many ways, and you can find them online, in-person, on the phone, or through a third-party.It is a good idea to be aware of the investment fee stipulations before seeking advice or counsel from these types of services.Sometimes people don't realize that they are being charged investment fees to speak with an advisor or consultant.
3) Mutual fund fees:Mutual funds generally charge a variety of fees at the beginning, end-sale, and during the process of holding the fund.For example, when you buy a mutual fund, there is usually a fee that comes with the initial purchase.Mutual funds also often charge for transfer-fees, which can occur if you transfer different assets between companies that are approved.In addition, mutual funds may also charge 12b-1 fees.These have been in place since 1940, and they are described in the Investment Company Act of that year.These fees are continual fees which are used to pay sales commissions, advertising costs, and other promotional charges.These fees are paid out of your assets.
Financial advisors and online financial calculators can help you to determine what investments will be beneficial to you, and will outweigh the cost of the fees against the benefits of the investment.Financial calculators are easily accessible, and can help you to calculate your annual return rate with your investment fees in mind.Finding this kind of advice or help before investing is very helpful, and will also help you to create a strong investment strategy.However, you should also be aware that not all companies have placed fees or costs with their stocks.For example, Bank of America, Corp. gives thirty free stock trades each month to customers which keep $25,000 or more with their bank!If you are interested in online investing, a relatively new broker Zecco.com gives forty free trades to customers each month!So, the free options for trading are available, you just need to know where to look!


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