Zero commission doesn't mean zero cost. The commissions that killed dividend capture 15 years ago are gone. But costs still exist, they're just hidden in spreads, currency conversion, and account minimums.
The Good News First
US stock trading commissions are now $0 across all major brokers. This single change transformed dividend capture from impossible to viable for retail traders. But before you celebrate, understand what costs actually matter now.
Real costs live in: bid-ask spreads (the gap between buy and sell prices), currency conversion fees (if you trade internationally), regulatory fees (small but real), and sometimes minimum position sizes (though mostly gone).
Zero-commission trading makes dividend capture viable. For a full breakdown of the strategy and whether it's right for you, see What Is Dividend Capture? The Basics.
US Stock Trading (Most Important for Dividend Capture)
| Broker | US Stock Commission | Min Account | Fractional Shares | Best For |
|---|---|---|---|---|
| Interactive Brokers (IBKR Lite) | $0 (US clients only) | $0 | Yes (11,000+ stocks) | Active traders, best execution |
| Charles Schwab | $0 | $0 | Yes (S&P 500 stocks) | Retail, excellent research |
| Robinhood | $0 | $0 | Yes (all stocks) | Mobile-first, simple |
| Fidelity | $0 | $0 | Yes (all stocks) | Stability, institutional backing |
| TD Ameritrade / Schwab | $0 | $0 | Yes | Education, thinkorswim platform |
| eToro | $0 | $200 | Yes (limited stocks) | Beginners, social trading |
All major US brokers offer zero commission on US stock trading. The difference is in fractional shares access and execution quality (bid-ask spreads). Interactive Brokers and Robinhood offer the widest selection. Choose based on your comfort with the platform.
Real Costs: Bid-Ask Spreads (Where Money Actually Gets Stolen)
You don't pay commissions, but you pay the spread. When you buy, you pay the ask (higher price). When you sell, you get the bid (lower price). That gap is the real cost.
Large-cap US stocks (dividend payers): Spreads are typically $0.01–$0.05 per share. On a $10,000 position, you're losing $10–$50 round trip. Not terrible, but not zero.
Interactive Brokers vs. Schwab: IBKR's SmartRouting gets better spreads because it routes to better execution venues. Schwab uses payment-for-order-flow (PFOF), which means it's selling your order to market makers. IBKR is slightly better for active traders executing many trades per year.
For dividend capture, where you're in and out in 1–2 days, tighter spreads matter more because you cross the spread twice (buy and sell). Go with IBKR or Robinhood for the best execution on high-volume US stocks.
Canadian Stock Trading
| Broker | CAD Stocks | USD Stocks | Currency Conversion | Min Account |
|---|---|---|---|---|
| Interactive Brokers | $1 CAD/month | $1 USD/month (or free IBKR Lite) | 0.002 spread (excellent) | $0 |
| Questrade | $0 CAD | $0 USD | 0.002 spread (excellent) | $0 |
| Wealthsimple | $0 | $0 | 1.5% markup (expensive) | $0 |
| CIBC Direct Investing | $0 | $0 | 1.0–1.5% (moderate) | $0 |
For Canadians: Interactive Brokers or Questrade are your best bets. Both offer tight currency spreads (0.002 = 0.2%) and zero commissions on stocks. If you're converting CAD to USD to trade US dividend stocks, the 0.2% conversion cost is trivial compared to Wealthsimple's 1.5% markup.
European Stock Trading
| Broker | EU Stocks | US Stocks | Min Account | Best For |
|---|---|---|---|---|
| Interactive Brokers | 0.05% (min. €1.25–€3) | $0.0035/share (min. $0.35) | €0 | Global traders, US stocks cheaper |
| eToro | $0 | $0 | €200 | Simplicity, EU-regulated |
| DeGiro | €0–2/trade | $1–2/trade | €0 | Budget traders, basic platform |
| Saxo Bank | €0.10–0.20/share | $0.005/share | €10,000+ | Professional traders, high minimums |
For Europeans: IBKR is not zero commission for EU stocks. It charges 0.05% per transaction (minimum €1.25–€3) plus exchange and regulatory fees. A €250 trade costs roughly €1.80–2.50 total (0.7–1%).
Better option for Europeans: Trade US dividend stocks via IBKR instead. US stocks cost only $0.0035 per share (min. $0.35), plus 0.2% currency conversion. A $2,500 USD trade costs roughly $1.25 + $5 conversion = $6.25 (0.25% total). Much cheaper than EU stocks.
eToro is simpler (zero commission) but has a €200 minimum and uses CFDs for some assets. DeGiro is budget-friendly but uses outdated technology.
Asian Stock Trading
| Broker | Asian Stocks | US Stocks | Min Account | Notes |
|---|---|---|---|---|
| Interactive Brokers | $1–5/trade | $1 USD/month (IBKR Pro) or $0 (IBKR Lite for US clients) | $0 | Best global access |
| Tiger Brokers | $0 (HK) or 0.03% (SG/AU) | $0 (promotional, verify current status) | $0 | Asia-focused, growing platform |
| Webull | Limited | $0 | $0 | US stocks mainly |
| eToro | Limited (CFDs) | $0 | $200 | CFD trading only, not real stocks |
For Asian traders: If you want to do dividend capture on US stocks, Tiger Brokers (with promotional $0 US commissions) or IBKR (if you want global access) are your options. Asian dividend stocks often have lower trading volumes and wider spreads, making dividend capture less reliable. Stick to US dividend stocks if possible—they're the most liquid and predictable.
Tiger Brokers currently has zero-commission US stock trading as a promotional offer. Verify current status before opening an account.
What Actually Costs Money (Beyond Zero Commission)
1. Bid-Ask Spreads (The Real Cost)
Large-cap US stocks: $0.01–$0.05 per share spread. Lose this on entry and exit.
International stocks: 0.1–0.5% wider. Emerging markets can be brutal.
Impact on dividend capture: On a $10,000 position with $0.03 spread, you lose ~$30 on entry and $30 on exit = $60 total cost (0.6% of position). This is why you need bigger dividends and better execution.
2. Currency Conversion
Interactive Brokers: 0.2% spread (best-in-class). On a $10,000 USD conversion, you lose $20.
Bank conversions: 1–2% markup. Same $10k costs $100–$200. Don't do this.
eToro: 1.5% markup. Middle ground.
Impact on dividend capture: If you're trading internationally, currency costs eat into profits. Stick to the same currency if possible. US traders should trade US stocks. Canadians can trade CAD or USD stocks via Interactive Brokers or Questrade (both 0.2% conversion).
3. Regulatory Fees (Small but Real)
SEC fee (US sales only): $0.000167 per share. On 1,000 shares, that's ~$0.17.
FINRA fee (US sales only): $0.000166 per share. Same thing, trivial.
4. Account Minimums
Almost all brokers now have $0 minimums. eToro's €200 minimum is the outlier. Not a serious factor anyway.
For Dividend Capture Specifically: The Optimal Setup
If You're in the US
Best broker: Interactive Brokers (IBKR Lite, US clients only) or Robinhood.
Why? IBKR Lite = zero commission + SmartRouting for best execution (tightest spreads). Robinhood is simpler and also offers tight spreads.
Expected costs per trade: $20–$50 in bid-ask spreads on $10,000 position (0.2–0.5%). This is your real cost.
If You're in Canada
Best broker: Interactive Brokers or Questrade.
Convert CAD to USD at 0.2% spread. Trade US dividend stocks (most liquid, tightest spreads). Expected costs: ~$20–$50 on $10,000 position + $20 currency conversion = $40–$70 total (0.4–0.7%).
If You're in Europe
Best broker: Interactive Brokers.
Here's the critical insight: Don't trade EU stocks on IBKR. Trade US dividend stocks instead. Convert EUR to USD at 0.2% spread, then execute US stock trades at $0.0035/share (min. $0.35). Expected costs: ~$15–30 spreads + $20 currency conversion = $35–50 total on $10,000 (0.35–0.5%).
This is 50% cheaper than trading EU stocks directly on IBKR.
If You're in Asia
Best broker: Tiger Brokers (for US stocks with zero commission, if promo is still active) or Interactive Brokers (if you want global access).
Trade US dividend stocks only. Asian dividend stocks have worse liquidity and higher costs. Expected costs: ~$30–$60 spreads + currency conversion = $50–$100 total (0.5–1%).
TLDR
Zero commission changed everything. But spreads are now the real cost. On a $10,000 dividend capture trade:
- Commission: $0 (everywhere for US stocks)
- Bid-ask spread (entry + exit): ~$40–$60
- Currency conversion (if international): ~$20–$30
- Regulatory fees: ~$0.35
- Total real cost: ~0.5% per trade
For dividend capture to work, your dividend yield must exceed these costs. If you're trading sub-1% dividend yields, the costs can eat your profits. On our platform you can filter to exclude dividends under 1% automatically, and on our backtest and planning simulations you can also set the minimum yield.
The era of cheap retail trading is here. Commissions are gone. What matters now is execution quality (spreads) and currency conversion efficiency. Pick Interactive Brokers for the best execution globally on US stocks. Pick Robinhood or Schwab if you want simplicity in the US. Don't overthink it, US stocks are the lowest-cost vehicle for dividend capture, regardless of your location.
Disclaimer: I have no commission or affiliation with Interactive Brokers, Robinhood, or any broker mentioned in this article. This is not an advertisement for any platform. Broker fees, commissions, features, and policies change frequently. The information in this article is accurate as of November 2025, but may be obsolete or outdated by the time you read it. Before opening an account or executing any trades, verify all current fees, commission structures, and account requirements directly with the broker. You are responsible for confirming this information independently. If you have specific questions about broker fees or dividend capture strategy, feel free to reach out.
