This is the most common type of investment account and has been around since full-service brokerage began. In transactional accounts a commission is charged with every purchase and sell. The biggest factors that effect the commission amount is the total value of the trade, and to a lesser extent the number of shares and price per share.
Who should consider a transactional account?
- Investors with investment assets under $150,000
- Investors who prefer to buy and hold investments with minimal trading
- Investors with a long term time horizon
- Investors who want access to research publications
- Investors who do not require frequent withdrawals from the account
- Investors who already have accounts set up in good order
- Investors who pay little or no income tax
- Investors seeking infrequent investment advice
