The wealth management industry runs on asset-based and service fees — yet a significant share of investors remain unaware they’re paying them at all, according to a new survey from the Financial Industry Regulatory Authority’s Investor Education Foundation. 

In a poll of more than 2,800 investors, 20% incorrectly believed they pay no investment fees, while another 18% said they don’t know how much they’re charged. Only 24% correctly identified their fees, which typically amount to at least 1% of assets under management in most advisory and brokerage relationships, the FINRA Foundation noted. 

Fee comprehension is lowest among younger investors and those with smaller account balances. Investors with less than $50,000 in assets were twice as likely to believe they pay no fees compared with those holding more than $50,000 — underscoring the knowledge gap among newer market participants and emerging investors. 

Awareness also varies widely by product and service type. Fewer than half of mutual fund and ETF holders are aware they pay expense ratios, and understanding of per-trade commissions and fund costs has declined sharply since 2018. FINRA attributes this drop in part to the rise of “zero-commission” trading, which can obscure embedded costs. 

The survey further shows that the post-pandemic retail investing boom has cooled. Just 8% of respondents entered the markets in the past two years, down from 21% in 2021. The sharpest pullback has come from younger adults, men, and investors of color — the same groups that led the surge of first-time investors during 2020–2021.