Broker costs in comparison: This is how investors really save!

The cost structure when trading securities plays a central role for investors. Depot management fees and order costs are among the decisive factors when comparing brokers. Neobrokers in particular often waive portfolio management fees, which makes them attractive for many investors. However, there are significant differences in order costs between different brokers.

Brokers use different cost accounting models, including the classic commission model and the flat rate model. Lower costs are crucial to increasing returns for investors. An often overlooked aspect is the spread, the difference between the bid and ask prices, which varies depending on the broker and trading type, particularly in derivatives and forex. Trading venue fees and third-party charges can also drive up costs, while some brokers cover these fees for certain orders.

Costs and fees in detail

Overnight fees may apply for open positions, the amount of which is based on reference interest rates such as EURIBOR or LIBOR. The management fees (TER) for ETFs and actively managed funds, which do not flow to the broker, also deserve special attention. Fees may also apply for additional order functions such as stop loss or trailing stop loss as well as inactivity fees for low trading volumes. When choosing a broker, investors should make sure to carefully examine the price list to avoid hidden costs.

Another important point is understanding the “expense ratio,” which describes the annual fee charged by an investment company to cover management and operating costs. Minimizing the expense ratio is crucial to maximizing investment returns. These fees are expressed as a percentage of the fund's assets and are deducted from income before distribution to shareholders.

• Ein Beispiel: Ein Fonds mit einer Expense Ratio von 1% und einer Rendite von 10% führt zu einer Netto-Rendite von 9%.
• Für Investoren ist es wichtig, die Fondsoptionen zu vergleichen und das Fondsprospektrum auf Expense Ratios und andere Gebühren zu prüfen.
• Kleine Unterschiede in den Expense Ratios können über längere Zeiträume zu signifikanten Differenzen in den Anlagerenditen führen.

In 2020, the average expense ratio for equity funds was 0.44%, while for ETFs it was 0.19%. Actively managed funds typically have higher expense ratios due to their operating costs, but often perform worse than passively managed funds. For example, providers such as Vanguard, Fidelity and BlackRock have gained recognition for their low fees, while trading apps and local banks are discouraged due to higher fees.

A comparison of fees shows that an expense ratio of 1% versus 0.5% over 20 years on a $10,000 investment can make a difference of $9,835 in returns. Finally, investors should also pay attention to whether there are hidden fees such as sales costs, exit fees and taxes, which should be carefully examined in the fund prospectus.