Investing term

What is Inactivity fee?

A fee charged if you don't trade enough times per year.

An inactivity fee is a charge some brokers apply if you don't trade often enough — a penalty for being a patient, buy-and-hold investor, which is exactly what most people should be. It's a reason to read a broker's fee schedule before opening an account, since a long-term investor could quietly pay it year after year for doing the right thing.