Expert: Gina Boykin - 12/10/2007

Question
I realize that brokers have to make money but is almost $95 a trade normal??   I want to leave the market where I have lost almost $17,000 in the past year and invest my money in CDS.  If my broker keeps me going in this direction I will lose and lose and I started with $250,000!! Thanks for your advice.

Answer
$95 is not the norm for discount brokers, but you didn't specify that this was a discount broker (such as Ameritrade, Fidelity, Vanguard, ETrade, etc).  If your money is invested with a broker, you have two options: leave the money in the account or sell.

Remember that investments in stocks/bonds are long-term investments.  Hopefully the broker explained this to you when you made your original investments.  If you were to look at the history of these stocks or mutual funds, they may have declined by 25 percent in one year, but gained 30 percent a few years later.  That is the nature of stock investing.

However, if it causes you to lose sleep at night, pay the fee and move to something you can be more comfortable with.  If you have several different investments, you could move some of the money to CDs and leave some.  This would give you a more diverse portfolio, and may relieve some of your worry.

Your broker should have a publicized fee schedule.  Check this to ensure that there is nothing unethical.  As long as it agrees, you should be fine.  Also talk to your broker and ask them about your investments.  If this is not a discount broker, he/she should be able to explain the investments AND why they think you should stay.