Broker Fee Comparison Calculator
Compare flat transaction fees with a percentage fee on the same deposit and transaction count over five years.
How the fee comparison works
Enter the deposit amount for one transaction, the number of transactions in each year, the flat fee charged per transaction, and the percentage charged on each deposit. Both fee schedules use the same deposit and transaction count for five years.
The table shows each schedule’s modeled fee total after each year. The result card compares the five year totals, identifies a tie or the lower modeled fee total, and shows the break even deposit when a unique finite threshold exists.
For example, with a deposit of 5,000 currency units, 12 transactions each year, a flat fee of 5 units, and a percentage fee of 0.25%, the five year totals are 300 and 750 units. Both totals equal 300 at a deposit of 2,000 units.
Enter the fees and transaction assumptions from the relevant broker documents. The tool does not look up current broker prices, and its comparison does not establish which broker is suitable for you.
Step by step
- Enter the same per transaction deposit amount for the comparison.
- Enter an annual whole number of transactions and both fee amounts.
- Compare the five year totals, yearly table, and break even status.
Worked example
Enter a deposit of 5,000 currency units for each transaction, 12 transactions per year, a flat fee of 5 currency units per transaction, and a percentage fee of 0.25% per transaction.
Over five years, the flat schedule totals 300 currency units and the percentage schedule totals 750. The break even deposit is 2,000 currency units: at that deposit both schedules total 300. At the example deposit, the flat schedule has the lower modeled fee total.
When this comparison is useful
Use this comparison to calculate the cost of two simple transaction fee schedules for a fixed deposit amount and activity level.
Read the broker’s current fee and account documents before comparing offers. This model does not include other charges unless entered into the relevant fee input.
Common interpretation errors
Do not compare a flat fee for one order with a percentage applied to a different deposit amount. The model uses the same deposit per transaction in both schedules.
Do not read the lower modeled fee total as a broker recommendation. Check the complete fee schedule and services for the specific account before making a decision.
Cost formulas
flatTotal5yr = flatFeePerTransaction × transactionsPerYear × 5
pctTotal5yr = depositPerTransaction × (feePercentage / 100) × transactionsPerYear × 5
breakEvenDeposit = flatFeePerTransaction / (feePercentage / 100), when transactionsPerYear > 0 and feePercentage > 0
The same deposit amount and annual transaction count are used in both schedules for each of five years. A zero transaction count makes both totals zero. If both entered fee rates are zero, every deposit amount ties; if the percentage rate is zero and the flat fee is positive, no finite deposit makes the schedules equal.
Assumptions and limits
This is a fixed input comparison, not a broker quote. It assumes the same deposit per transaction, transaction count, and fee schedule in every year. It includes only the two entered transaction fees. Actual costs may also include account and investment charges, fee tiers, discounts, minimums, taxes, spreads, currency conversion, or changed activity. Fees and terms can vary by broker and account. Enter amounts in the displayed currency; no conversion is performed.
Key terms
- Flat transaction fee
- A fixed amount charged for each transaction in this model.
- Percentage transaction fee
- A fee calculated as the entered percentage of the deposit amount for each transaction.
- Break even deposit
- The deposit amount at which the two modeled fee schedules have equal cost, when a unique finite threshold exists.
Compare alternatives
This calculator compares only the two fee schedules entered here. The SEC explains that brokerage accounts can include transaction charges and other account or investment fees. Use the broker fee schedule and account documents to check which charges apply to you.
The ETF Expense Ratio Calculator estimates a fund level annual expense, while this tool compares transaction fees. The FX Spread Cost Calculator can model a separate currency conversion cost. These are separate charges and should not be treated as included in this result.
FAQ
How are the five year costs calculated?
The flat total is the per transaction flat fee multiplied by the annual transaction count and five. The percentage total applies the entered percentage to the same deposit on every transaction, then multiplies by the same count and five years.
What does the break even deposit mean?
It is the deposit size per transaction where the two entered fee schedules have equal modeled cost, when the percentage rate is positive and there is at least one transaction per year. Below or above that amount, compare the displayed totals for your entered deposit.
Does the model change the deposit over time?
No. It repeats the same deposit size and annual transaction count in each modeled year. It does not model changing order sizes, trading activity, fee tiers, or investment returns.
Does this include every broker or investment cost?
No. It includes only the flat fee per transaction and the percentage fee you enter. It excludes account, custody, inactivity, transfer, exchange, regulatory, fund, foreign exchange, tax, spread, and other charges unless you include them yourself in an input.
What if both fee totals are equal?
The result is shown as a tie when the modeled five year totals are equal. It does not favor either fee schedule in that case.
Related calculators
The ETF Expense Ratio Calculator models an annual fund expense. The FX Spread Cost Calculator estimates a currency conversion spread. These tools cover costs not included in the transaction fee comparison.