Dollar Saver Tip #33
Save $750+ per year
Choosing the right investment app can save you hundreds of dollars each year – which can translate to thousands in potential returns!
We all know investing is important for growing your wealth and retiring comfortably.
And making regular small deposits into the stock market is a great way to build up your nest egg over time. But if you're not using the right platform, high broker fees can essentially erase your investment returns.
Say you're investing $100 each month into an ETF and paying $10 in brokerage fees each time. You would need that ETF to return 10%+ annually just to cover the costs!
Since the stock market historically returns around 9-10% p.a. on average over many years, there's a good chance you won't be seeing any positive returns at all.
Did you know?
The difference in costs from one broker to the next can be as high as $75 more per trade in brokerage fees.
For instance, buying shares in an Australian company or ETF will cost anywhere between $0 - $24 in brokerage fees (for every trade), depending on the platform you use. For US and other global stocks, the difference is even bigger, with brokers charging between $0 - $75.
So if you were to place 10 trades in a company or ETF over the course of a year, you could be paying up to $750 or nothing at all in commission fees.
Importantly, some platforms offer low fees for Australian equities but high fees on global stocks and vice versa. Others offer special $0 brokerage deals if you invest in ETFs. It can actually pay to have multiple platforms depending on what you're investing in.