If you’re planning to invest or buy property, understanding broker's fees is important. These fees can vary, and knowing what to expect can save you from surprises. Let’s break down the common types of fees charged by brokerages in Canada.
This is the most common brokerage fee. Brokerage charges a percentage of your transaction, whether you’re buying or selling. For example, real estate agents typically take 3-5% of the property’s sale price as a commission.
Some brokerages charge a flat fee instead of a percentage. This means you pay a set amount for their services, regardless of the transaction size. This is often used for smaller transactions or services like paperwork processing. Some of the best brokerage houses offer transparent fees and excellent support.
If you have an investment account with a brokerage house, you might pay an annual or monthly maintenance fee. This covers account management and ongoing services. Some of the best brokerage houses waive these fees if your account balance is high.
This fee applies every time you make a trade, like buying or selling stocks. It’s usually a small amount, but it can add up if you trade often.
If you use a brokerage house for financial advice or investment planning, they may charge you an advisory fee. This is either a percentage of your portfolio or a fixed rate.When looking at brokerage fees in Canada, it’s important to compare services and costs. Always review the fee structure carefully to make sure it fits your needs.