Key takeaways
- A fixed fee is a larger percentage of a smaller trade.
- Trading more frequently can increase total brokerage when each trade attracts a charge.
- A percentage fee behaves differently from a fixed minimum.
- Use your expected contribution size and frequency rather than a generic headline fee.
The simple maths behind fee drag
Moneysmart warns that fees can be a big share of a small trade. Divide the brokerage by the trade value to see the immediate percentage cost.
Visual explainer
Illustrative A$5 brokerage
A$100 trade
- A$5 ÷ A$100 = 5%
A$500 trade
- A$5 ÷ A$500 = 1%
A$1,000 trade
- A$5 ÷ A$1,000 = 0.5%
Frequency changes the annual total
If every purchase attracts brokerage, twelve monthly purchases can cost more in brokerage than four larger quarterly purchases. That does not make one schedule universally better: market timing, cash availability, minimum trade sizes and provider rules also matter.
Watch for minimums and conditional pricing
A fee advertised as a percentage can still have a minimum. A low or zero headline can also depend on market, order size, product or promotion. Read the conditions before modelling a recurring plan.
Use a scenario, not an average investor
Enter the amount and frequency you actually intend to model. Then compare the supported published rules and keep unverified costs outside the result rather than assuming they are zero.
Use this guide with live TradingGuide Australia research
Sources
Sources were reviewed on 29 September 2026. Provider pricing and product terms can change; verify current terms with the provider before acting.