Trading apps carry variable fees and charges from one provider to another. It can be a complicated for investors to work out what they will actually pay.
Some providers impose a flat fee per trade. Others structure their charges to benefit users who trade the markets more frequently. Users may also find themselves billed according to the size of their investment. Accounts provided by longer-standing platform providers often come with a monthly subscription or admin fee. If you are planning on buying foreign shares, then you’ll probably be charged a currency fee for doing so. If you’re an infrequent trader or buy-and-hold investor, your account might be hit with inactivity charges.
Several app providers promote their commission-free trading status. But bear in mind that, just because trades are free from commissions, it doesn’t necessarily mean your account will be totally free of charges. Brokers make their money in other ways, such as withdrawal fees and charges for currency conversion.
Before signing up to a particular investing app, work out what sort of investor you are. Having an idea of how much you’re going to invest, how often you plan to trade, and which markets will be your primary focus can help determine the best and most cost-effective app for your needs.
Sven Franssen