So I have a question as a new investor. My bank charges $6.95 for each trade, I went to the FAQ and found out that this commission is charged every day that a trade is made. I believe that any trades set up on a recurring basis (such as investing a portion of your monthly income) would result in a charge for every occurence. I do not have confirmation on this next part but I believe that a trade would be one request for each ticker, within each account. So, if I have an RRSP and TFSA (retirement and tax free, to maximize my investments under tax breaks) but I use both of thhem to invest in the same fund, I would still be charged twice.
While this fee is on the lower end of the fees available in my area, the fee still seems quite high and I feel that a significant portion of my investments would end up being commision fees. Note: this is for a self managed portfolio, investor managed portolios are more than 5x this amount.
I am wondering what calculations I should do to figure out what the optimal frequency for investing is, given that I have a steady income (getting paid twice a month) and can afford to contribute on a recurring basis.
Those of you who are/have been in similar positions, what worked for you?