Transaction fees from brokers will take a bite from your return. Especially while trading for the short term transaction fees have a real impact when you make many transactions. In general a broker will bill you a percentage of the invested amount of money.
In most cases you pay the same percentage for large or small sums of money invested. So relatively speaking investing small parts is not more expensive. But beware of the fact that many brokers charge you minimal transaction fees and that may be very detrimental to your net return.
Transaction fees may also differ depending on the exchanges you are trading. In general Euronext exchanges such as Brussels, Paris and Amsterdam have the lowest cost of operating. You may also be charged with different fees depending upon the sort of contract you have with a broker.
Before you begin trading ETF’s first look at transaction fees while choosing a broker. The differences may be enormous.
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