Is there a simulation calculator that aggregates transaction costs across all brokers? Something where you can input details, like a 5c60DTE SPY 500 purchase, and compare the combined platform fees, contract fees, and taxes for each broker? I know it sounds a bit lazy, but I’m looking to open a new US account, and the rates are so complex that I still can’t figure out which broker is the cheapest.
I don’t think there is a single place that accurately summarizes the commissions for all brokers. When I was considering switching brokers, I visited each website to review their commission schedules directly. I created a spreadsheet to track the stock commissions which are mostly zero now, option base fees, option commissions per contract, as well as option exercise and assignment fees.
When I conducted this research a few years ago, Firstrade was the only broker offering zero commissions on both stocks and options trading. However, I eventually switched to Fidelity because I wanted to invest in bonds, which was difficult to do on Firstrade. Fidelity offers a good balance between low fees and a comprehensive range of services for investors.
Although some brokers conceal their transaction costs and just highlight the offers they already have, I have also looked at the rates offered by each website for side-by-side comparisons.
There are more zero-commission brokers now, like Robinhood, Moomoo, Webull, and others. However, I have not had much success comparing their rates.
Keep in mind that zero-commission brokers usually rely on payment for order flow, so while you might not pay a transaction fee, it is not as free as it seems Plus, I believe this practice is banned in the EU.
There are reviews accessible on this website that may be helpful, such as Moomoo review 2024: Fees, pros, cons, safety and more!. You can also check out other broker reviews to learn more about the various fees.
This review claimed that Moomoo is the best low-fee broker for US cost-conscious investors. Quite the coincidence, right?