Jan 202012
 

Mirus was the first to do it, they announced a $25/month maintenance fee for 2012.  This fee is waived if you trade 5 round turns per month.  This sounds reasonable to me.

But then.. starting February Velocity has $30/month and requires 25 round turns.  That’s a bit more steep especially for someone who is starting out and/or trading a lot on sim.

These fees are probably designed to stop people from “freeloading” by getting free data and trading on sim, as any not-yet-profitable trader should be doing.  But the worse is once a fee like this appears, it tends to grow.  Think ATM fees.  They started at $0.50 then $1.00 and then $1.50 and some are now over $3.50.  Soon all brokers will have these fees and then they’ll raise them.  I can see them at $50/month and 50 round turns minimum, etc.

While I trade enough to meet the minimums, I do have two broker accounts so I have to make sure I do the minimum on every one each month.  And if I go on vacation for a month I’ll get socked with the fee.. twice!

If you’re trading on sim watch out for this fee and choose your broker accordingly.  I wouldn’t necessarily switch brokers because of this because I think they’ll all have it soon.

We can show our displeasure with these fees by complaining about them and choosing brokers without them, at least until they all have them.  That’s about all we can do.  So I won’t recommend Velocity for new traders any more unless you’re ok with a $30/month fee.

 

 

  2 Responses to “Broker monthly maintenance fees have arrived”

  1. IB had this fee before but it is much lower. I have 2 accounts with Velocity, so I have asked them if the fee applies to both accounts. I guess it will.

  2. Totally agreee.

    Thin end of the wedge.

    The Mirus fee level is probably fair enough, but I agree the risk is it will slowly increase. I did actually complain to my broker at Mirus (but no higher) stating that if I did not trade Live, they still had the free use of my capital in their account ie I assume they can generate some sort of interest rate return on all their clients money which must help defray any costs incurred by someone not trading Live.

 Leave a Reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

(required)

(required)