what happens if transaction costs are too high 
consider the implications of high transaction costs over time assume you begin investing 10 000 per year for 30 years and earn a steady 6 per year your gross ending value will be approximately 838 000 however if your annual fund expense is 1 you will pay over 140 000 of fees over the life of your investment this would reduce your ending portfolio value to less than 700 000 the bottom linetransaction costs are often necessary to reward intermediaries to facilitate the exchange of a good this is especially prevalent in the investment world where brokers regulatory agencies or other entities impose fees on trades or transactions be mindful of the fees your broker charges and consider implementing strategies such as bulk trades passive investing or fewer contracts to minimize these fees 