With so much else clamoring for their attention, many investors have a hard time making money in the markets. One way to better your chances (though it certainly doesn’t assure you win) is to lower the fees you pay for advice, trading commissions, management fees, and portfolio management.
Fees down, good for investors
Good news for investors on this front: fees for most types of investment services continue to drop and drop hard.
- Mutual funds: Mutual fund expenses have dropped significantly since 1990
- ETFs: Mutual funds’ low cost little brothers, exchange traded funds (ETFs), are fighting tooth-and-nail for investor money and ETF fees are dropping faster than Jim Cramer flip-flops on stocks. In fact, depending on your brokerage, you may be able to trade ETFs for free (though you would still pay a management fee).
- Portfolio managers: Investment advisors have been consistently lowering their fees since 2007.
So, investing is definitely cheaper now for investors. But the next step — what to invest in — still needs to be answered.