What is an Inactivity Fee?

An inactivity fee is a fee charged by brokerages to clients whose infrequent trading does not satisfy a minimum trading requirement.

How Does an Inactivity Fee Work?

A brokerage house earns revenue from fees and commissions charged on accounts. To hedge against the chance that an account holder might not place enough orders to earn the brokerage sufficient commissions to make a profit, the brokerage may charge an inactivity fee on stagnant accounts.

Why Does an Inactivity Fee Matter?

Inactivity fees affect small and long-term investors, who don’t trade as often or in as much volume as other traders.

Ask an Expert about Inactivity Fee

All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Inactivity Fee.

Be the first to ask a question

If you have a question about Inactivity Fee, then please ask Paul.

Ask a question
Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

Verified Content You Can Trust
verified   Certified Expertsverified   5,000+ Research Pagesverified   5+ Million Users