Here is a question I got from a reader;
I owned NZSX, an ETF-like New Zealand fund, for a year. I was stunned to have a $700+ trade fee at each end through Schwab. I aksed about it, blah blah, that is just the way it is done.
I spoke to Schwab about your question re the fee. They can trade the ETF based on the NZX Ten, the product brand is called SmartShares and I have written about these before. It trades below $1 per share US. There is a minimum ticket charge involved plus a substantial fee as a percentage of the trade for stock below $1 US.
I don't know why it needs to be that high but there is more work involved for this type of stock than others. I would not expect you to be happy with the answer but I can tell you from first hand experience that trading certain types of stocks is more expensive for the brokerage firm. When that happens they will absolutely pass that expense on to you.
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2 comments:
Schwab will nickle and dime you to death with their egregious fees.
a good rule is to never buy anything that is under $2 ... you'll miss out on a few winners but also miss hundreds of losers. Everybody involved in the process of buying and selling $1 stocks is trying to gouge everybody else.
Unless your main objective is to be "The Supreme Gouger" (good luck with all the crooks) walk away ... just walk away....from them all.
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