Compare real commissions across brokers and asset classes. Understand how fees compound and drain strategy edge.
Since 2019, most retail brokers (Fidelity, Charles Schwab, TD Ameritrade, E-Trade) offer zero commission on stocks and ETFs. This is transformative for casual investors but not truly free.
How they profit:
| Broker | Stock Commission | ETF Commission | Spread Quality |
|---|---|---|---|
| Fidelity | $0 | $0 | Excellent |
| Charles Schwab | $0 | $0 | Excellent |
| Interactive Brokers | \$0.001 (min \$1) | \$0.001 (min \$1) | Good |
| Robinhood | $0 | $0 | Fair (PFOF heavy) |
For backtesting stocks: Use 0% commission + 0.01–0.02% spread. This matches most retail brokers.
Options remain expensive. Most brokers charge per contract, and multi-leg spreads add up fast.
| Broker | Per Contract | Spread (10 contracts) | Multi-Leg Discount |
|---|---|---|---|
| Fidelity | \$0.65 | \$6.50 | \$0.15 per leg |
| Charles Schwab | \$0.65 | \$6.50 | \$0.15 per leg |
| Interactive Brokers | \$0.25 | \$2.50 | Lowest cost |
| TradeStation | \$0.50 | \$5.00 | Volume rebates |
⚠️ Real Example: How Options Fees Kill Profit
Scenario: Iron Condor, 20 contracts per side (4-leg spread)
Fidelity: 4 legs × 20 × \$0.65 = \$52 per round trip
10 trades/month = \$520/month commission alone
For a \$10,000 account (max risk), that's 5.2% monthly fee cost just to open/close positions
Your edge must be >5.2% monthly just to break even.
For backtesting options: Use \$0.25–\$0.65 per contract + \$0.10–\$0.50 per contract spread. Test on multi-leg discounts if you trade spreads.
Crypto exchanges use maker-taker models: add liquidity (limit orders) = lower fees; take liquidity (market orders) = higher fees. This incentivizes passive orders but your entry/exit timing suffers.
| Exchange | Maker Fee | Taker Fee | Volume Discount |
|---|---|---|---|
| Binance | 0.1% | 0.1% | Up to 0.02% (VIP) |
| Coinbase Pro | 0.2–0.4% | 0.4–0.6% | High volume: 0.04% |
| Kraken | 0.16–0.26% | 0.26–0.36% | Loyalty tiers |
| FTX (if available) | 0.02% | 0.05% | Referral rebates |
For backtesting crypto: Use 0.1–0.2% maker (if you're patient with limit orders) or 0.2–0.4% taker (if you market order). Altcoins: 0.3–0.5% on smaller exchanges.
Futures commissions are low per contract (\$2–\$20 round trip) but high leverage and frequent trading quickly compound costs.
| Broker | ES (S\u0026P 500) | MES (Micro E-mini) | Discounts |
|---|---|---|---|
| Interactive Brokers | \$2.88 round trip | \$0.72 round trip | Volume rebates |
| TD Ameritrade | \$6.50 round trip | \$3.25 round trip | None |
| AMP Futures | \$3–\$4 round trip | \$1–\$1.50 round trip | Volume/account size |
For backtesting futures: Use \$3–\$5 per round trip per contract. Day traders making 20+ ES trades = \$60–\$100 in commissions daily; 252 trading days = \$15k–\$25k/year in costs alone.
Best choice: Fidelity, Charles Schwab, or Vanguard
Why: Zero commissions on stocks/ETFs, excellent spreads, no PFOF concerns.
Best choice: Interactive Brokers or AMP Futures
Why: Lowest commissions (\$0.001–\$1 per trade), DAS/NinjaTrader integration, scalable.
Best choice: Interactive Brokers or Fidelity
Why: Multi-leg discounts (\$0.15–\$0.25 per contract), large selection of expirations.
Best choice: Binance, Kraken, or Bybit
Why: 0.1–0.2% fees, margin lending, perpetual futures, 24/7.
No. Spreads, execution quality, platform features, and reliability matter more. A broker with \$0 commission but 0.05% wider spreads costs more than a broker charging \$5 per trade with tight spreads. Always backtest with your actual broker's commission structure.
Yes, if you have a large account (>$500k) or trade high volume. Interactive Brokers, TradeStation, and professional brokers offer volume-based discounts. Retail brokers (Fidelity, Schwab) have fixed rates.
Total Cost = (Commission per trade × trades per year) + (Spread × 2 × trades per year) + (Slippage % × notional × trades per year). For example: 100 SPY trades/year at \$100 per trade = \$10,000 notional; 0% commission + 0.01% spread = \$2 per trade × 100 = \$200/year in spread costs.