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Saturday, September 23rd, 2017

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How much commission is typical for handling someones stock portfolio in the 30K range, as in swing trading?

1

Just curious if anyone know what a fair rate would be?

Thanks in advance

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One Response to “How much commission is typical for handling someones stock portfolio in the 30K range, as in swing trading?”
  1. MVD34 says:

    That is an extremely small account to pay someone else to manage. (Small is $100,000 to $500,000). You are not likely to get anyone good or cheap.

    It is difficult to defend accounts on a cost basis if they aren’t generating at least $1200 per year in income unless you have thousands of them…so my educated guess is at least 5% per year.

    The industry “standard” for basic management is 2% per year for accounts under $1 million and 1% per year for accounts over $1 million. The highest fees on the biggest accounts can be as much as 2% per year plus 20% of profits for the top managers.

    Of course if you give up the idea of active management and trading and go with index funds and passive management, you can lower your annual expenses to far less than 1% per year with little net change in average annual return.

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