Assets: Transaction Costs
Every Investment of Assets has a cost to the transaction. The purchase of stock has a required transaction fee. Certificate of Deposits may have an early withdrawal fee. Mutual funds have associated fees. Different investments have a gap between the Buy price and the Sell price that adds a cost for those that buy shares of stocks then sell those same shares.
Starting Steps for Transaction Costs Goals
(1) Learn about the official transaction costs and the range in costs offered by different companies.
(2) Learn about the Buy-Sell gap value on various investment types.
(3) Consider the intended frequency of investment trades to estimate the total cost of all your trades.