Low-Fee Brokerages for Wealthy Investors

When you're managing $1 million or $10 million, the difference between 0% and 0.50% in annual fees can be hundreds of thousands over a decade. Here's what's available in 2025.

The Major Players

Schwab

• Commissions: $0 for online US stocks, ETFs, options
• Management fees: 0% for Schwab Intelligent Portfolios (robo), but you'll hold cash in a Schwab Gold deposit account yielding 4.35%
• Advisory fees: 0.60% - 0.90% for managed accounts
• Minimum: $0 for opening, $5,000 for Intelligent Portfolios
• Perks: Best-in-class customer service, 300+ branches, ATM fee refunds worldwide

Fidelity

• Commissions: $0 for online US stocks, ETFs, options
• Management fees: 0% for Fidelity Go, 0.35% - 1.10% for other advisory
• Minimum: $0 for core brokerage
• Perks: Excellent fractional shares, 24/7 customer support, 2,000+ branches

Vanguard

• Commissions: $0 for Vanguard ETFs (only own-brand), $0 for other US stocks/ETFs
• Management fees: 0.30% for Personal Advisor Services
• Minimum: $3,000 for Personal Advisor
• Perks: Lowest-cost mutual funds in industry, excellent index funds

For Active Traders

Interactive Brokers (IBKR)

• Commissions: $0 for US stocks/ETFs (IBKR Lite), $0.005/share for IBKR Pro
• Management fees: 0.08% - 0.12% for Interactive Advisor
• Perks: Global reach, best margin rates, excellent API for quants

thinkorswim (TD Ameritrade)

• Commissions: $0 for US stocks, ETFs, options
• Perks: Outstanding trading platform, thinkScript for custom strategies
• Note: Now owned by Charles Schwab, platform being integrated

Wealth Management Platforms

For ultra-high-net-worth clients, dedicated wealth management makes sense:

The Math: Why Fees Matter More Than You Think

On a $5 million portfolio over 30 years:

• 1% annual fee: Starting with $5M, 7% returns, 1% fees = $15.4M ending balance
• 0.1% annual fee: Same assumptions = $19.8M ending balance
• Difference: $4.4 million lost to fees

That's the real cost of ignoring fees.

Hidden Fees to Watch

• Expense ratios: Stick to funds under 0.20%
• Turnover: High-trading funds create tax bills
• Bid-Ask spreads: Use limit orders, especially for smaller-cap stocks
• Transfer fees: Most firms charge $0 to transfer, but some charge

Our Recommendation

For most wealthy investors:

• Core portfolio: Fidelity or Schwab with index funds
• Trading needs: Interactive Brokers for options/foreign exchange
• Advisory: Consider fee-only fiduciary advisor if you need planning

Don't pay for services you don't use. Many HNWs are overpaying because they've never compared what they're actually paying.