How to Minimize Fees and Costs in Your Brokerage Accounts

Managing fees and costs in brokerage accounts is one of the most critical factors in maximizing your long-term investment returns. While many investors focus exclusively on picking the right stocks or timing the market, the reality is that fees can silently erode your wealth over decades. Understanding the various types of fees, implementing strategic cost-reduction techniques, and making informed choices about your investment vehicles can save you tens of thousands—or even hundreds of thousands—of dollars over your investing lifetime.

This comprehensive guide will walk you through everything you need to know about minimizing brokerage fees and costs, from understanding complex fee structures to implementing practical strategies that put more money back in your pocket.

Understanding Brokerage Fee Structures

Before you can effectively minimize fees, you need to understand what you're paying for. Brokerage fees are what a broker charges for various services, such as subscriptions, access to premium features or investing data, and additional trading platforms. Some even charge maintenance and inactivity fees, though these are becoming less common in today's competitive landscape.

Trading Commissions

Trading commissions, also sometimes referred to as stock trading fees, are charges for buying or selling stocks. You may also pay commissions or fees for buying and selling other investments, such as options or exchange-traded funds. Some brokerages charge commissions on stock and ETF trades, but these costs are now rare.

The good news for investors is that the brokerage industry has undergone a dramatic transformation in recent years. More online brokerages are now offering commission-free trading to investors. The trend began in 2019 when Schwab announced that it was eliminating trading fees, prompting competitors to follow suit. Today, major brokers like Charles Schwab state $0 online trades for stocks and ETFs, and $0.65 per options contract, while Fidelity states $0.00 commission applies to online U.S. equity trades and ETFs, and to options trades (+ $0.65 per contract) in a Fidelity retail account.

However, commission-free doesn't mean completely free. For those considering options, typical fees range from $0.50 to $0.65 per contract, and there are other costs to consider beyond basic trading commissions.

Account Maintenance and Service Fees

You might pay annual fees, monthly account maintenance fees, inactivity fees, research fees, paper statement fees or transfer fees to move money between accounts or a fee to close your account. These fees vary significantly between brokers and account types.

Fortunately, many major brokerages have eliminated these fees to remain competitive. Charles Schwab charges no opening or maintenance fees across all its brokerage account types in 2026, including individual brokerage, IRAs, trusts, and retirement plans. Additionally, there are no minimum balance requirements for any of these accounts. Similarly, there are no hidden fees and no inactivity charges. Schwab inactivity fees are no charges for keeping your account open, even if you don't trade for months.

Broker-Assisted Trade Fees

If you need help placing a trade or prefer to speak with a representative, you'll typically pay significantly more. Customers will be charged an additional $25 for broker-assisted trades, plus applicable commission and fees. If you're trading through a traditional brokerage, the fee may be much higher. A full-service broker may charge $100 or more to execute trades on your behalf.

Margin Interest Rates

If you borrow money from your broker to invest (known as trading on margin), you'll pay interest on that borrowed amount. Schwab states the base rate is 10.00%, "subject to change without notice," and notes it was last changed on 12/12/2025, while Fidelity states its current base margin rate is 10.575%, effective since 12/12/2025, with tiers that vary by debit balance. These rates can significantly impact your returns if you frequently use margin.

Regulatory and Exchange Fees

Even with commission-free trading, you may encounter small regulatory fees. For options orders, an options regulatory fee will apply. Additional regulatory and exchange fees may apply. While these fees are typically minimal, they're worth understanding as part of your total cost structure.

Specialized Transaction Fees

Certain types of transactions carry additional fees. Transfer agents and banks that sponsor ADRs are permitted to charge ADR holders an annual custody fee. The fee is administered through the Depository Trust Company (DTC). Additionally, you'll also pay a $50 early redemption fee for all sales executed within 60 calendar days of the trade date of your most recent purchase of the same fund at some brokerages.

The Hidden Cost: Expense Ratios

While brokerage fees are important, one of the most significant ongoing costs for investors comes from the funds themselves. An expense ratio reflects how much a mutual fund or an ETF pays for portfolio management, administration, marketing, and distribution, among other expenses. The cost is taken out of the fund's returns before they're passed on to investors. You'll almost always see it expressed as a percentage of the fund's average net assets.

What Expense Ratios Cover

An ETF's expense ratio covers the fund's total annual operating expenses, which include management, marketing, and distribution fees. Also included may be fees for accounting, administration, recordkeeping, custodial services, and legal services. These costs are automatically deducted from the fund's assets, reducing your returns without you having to write a check.

The Long-Term Impact of Expense Ratios

While expense ratios may seem like small percentages, they can significantly affect how much of your investment returns you get to keep. That's why it's important to carefully compare the overall performance, cost, and management styles of different funds.

Consider this example: If you invest $10,000 in a fund with a 1% expense ratio, you'll pay $100 in fees each year. While this might seem like a small amount, it can add up over time—especially in a larger investment portfolio. Over decades, these seemingly small percentages compound into substantial differences.

Imagine investing $100,000 into a fund that generates 4% in annual returns over a 20-year period. With no costs and fees, you may end up with a little more than $219,000. With a middle-of-the-road expense ratio of 0.5%, your end result could be around $20,000 lower. And with a 1.5% expense ratio, your returns may be reduced by a little more than $55,000.

Current Expense Ratio Benchmarks

Understanding what constitutes a reasonable expense ratio helps you evaluate your investment options. According to Morningstar, the average ETF expense ratio in 2025 was 0.48% and 0.74% for index and active ETFs, respectively, compared with the average expense ratio of 0.58% for index mutual funds and 0.87% for actively managed mutual funds.

More specifically, the average expense ratio for index ETFs in 2023 was around 0.15% for index equity ETFs down from 0.18% in 2019 and 0.11% for index bond ETFs. The trend is clearly moving toward lower costs, which benefits investors.

For passive index funds and ETFs, 0.10% or less is considered good. For actively managed funds, 0.50%–0.75% may be acceptable. Lower is always better when comparing similar funds.

Choosing Low-Cost Investment Options

One of the most effective ways to minimize costs is to select investment vehicles with inherently low fees. This doesn't mean sacrificing diversification or returns—in fact, research consistently shows that low-cost index funds often outperform their higher-cost actively managed counterparts over the long term.

Index Funds vs. Actively Managed Funds

Passive management (index funds) track a market index like the S&P 500 without trying to beat it. They require minimal research and trading, which keeps costs low. In contrast, active management requires extensive research teams, frequent trading, and hands-on management, resulting in higher costs. Active fund expense ratios often range from 0.50% to 1.50% or more. Research consistently shows that most actively managed funds fail to beat their benchmark indexes after accounting for fees, especially over long periods.

ETFs vs. Mutual Funds

The expense ratios of exchange-traded funds (ETFs) often are lower than corresponding mutual funds because ETFs are traded through brokerage firms, alleviating administrative costs. When purchasing or selling ETFs, however, you may incur transaction costs that would not apply to no-load mutual funds.

ETFs expense ratios generally are lower than mutual funds, particularly when compared to actively managed mutual funds that invest a good deal in research to find the best investments. And ETFs do not have 12b-1 fees, which are marketing fees that some mutual funds charge.

Examples of Low-Cost Funds

Popular examples include: VOO expense ratio (Vanguard S&P 500 ETF): typically around 0.03% VTI expense ratio (Vanguard Total Stock Market ETF): approximately 0.03% FXAIX expense ratio (Fidelity 500 Index Fund): roughly 0.015% VTSAX expense ratio (Vanguard Total Stock Market Index Fund): about 0.04%. These ultra-low expense ratios mean that for every $10,000 invested, you're paying between $1.50 and $4.00 annually in fund expenses.

The lowest-cost ETFs tend to track well-known broad-based indexes, such as the S&P 500®, making them accessible options for most investors seeking diversified, low-cost exposure to the market.

When Higher Fees Might Be Justified

While low costs are generally preferable, there are situations where higher expense ratios might be acceptable. Higher-cost ETFs tend to be actively managed, track more complicated indexes, or provide exposure to an index or single stock that is either inverse or leveraged. Additionally, some higher-cost ETFs make investments in cryptocurrencies, business development companies (BDCs), and other ETFs or mutual funds. Alternatively, higher-cost ETFs may invest in strategies that provide exposure to derivatives.

The key is ensuring that any additional cost is justified by unique exposure, superior risk-adjusted returns, or specific investment objectives that can't be met through lower-cost alternatives.

Minimizing Trading Activity

Even with commission-free trading, excessive trading activity can hurt your returns through various costs and tax implications. Adopting a long-term, buy-and-hold strategy is one of the most effective ways to minimize these costs.

The True Cost of Frequent Trading

The amount you pay to trade through your broker matters for one very important reason: fees can take a bite out of investment earnings. The more frequently you trade, the more you could pay in fees. Beyond direct commissions, frequent trading can incur bid-ask spreads, market impact costs, and potential tax liabilities from short-term capital gains.

Frequent trading of ETFs could significantly increase commissions and other costs, such that they may offset any savings from low fees or costs. This is particularly true for investors who engage in day trading or make numerous adjustments to their portfolios.

Benefits of a Long-Term Strategy

A long-term investment approach offers multiple cost advantages. First, it minimizes transaction costs by reducing the number of trades you make. Second, it allows you to benefit from long-term capital gains tax rates, which are significantly lower than short-term rates. Third, it reduces the likelihood of making emotional decisions that can lead to buying high and selling low.

Research consistently shows that investors who maintain a disciplined, long-term approach tend to outperform those who frequently trade, even before accounting for the additional costs associated with active trading.

Strategic Rebalancing

While minimizing trading is important, periodic rebalancing is still necessary to maintain your target asset allocation. The key is to rebalance strategically rather than reactively. Consider rebalancing on a set schedule (such as annually or semi-annually) rather than in response to market movements. You can also rebalance by directing new contributions to underweighted asset classes rather than selling and buying, which avoids transaction costs entirely.

Tax-Loss Harvesting

Tax-loss harvesting is a strategy where you sell investments at a loss to offset capital gains elsewhere in your portfolio. While this does involve trading activity, it can reduce your overall tax burden and effectively lower your total investment costs. Many robo-advisors now offer automated tax-loss harvesting, making this strategy accessible to investors who might not have the time or expertise to implement it manually.

Utilizing Fee-Free Accounts and Features

Taking full advantage of fee-free accounts and features offered by modern brokerages can significantly reduce your costs without requiring any change to your investment strategy.

Commission-Free Trading Platforms

Fidelity and Charles Schwab represent the gold standard for full-service discount brokerages. They offer an unparalleled combination of $0 commission trading, a vast array of investment products, industry-leading research, and exceptional customer support. These platforms have eliminated most trading commissions while still providing robust features and tools.

When evaluating commission-free platforms, look beyond just stock and ETF trades. Zero Commissions: $0 for U.S. stocks, ETFs, and options (plus $0.65/contract). Fractional Shares: Both offer fractional share investing, allowing beginners to invest in expensive stocks with as little as $1. Fractional shares are particularly valuable for investors with limited capital who want to build a diversified portfolio.

No-Fee Account Types

Many brokerages have eliminated account maintenance fees, minimum balance requirements, and inactivity fees. When opening a new account, verify that your chosen broker doesn't charge these fees. Charles Schwab commission fee is $0 on Stocks and ETFs, no account opening or maintenance fees, and no inactivity charges. Schwab appeals to a broad range of investors, from active traders to long-term holders.

Avoiding Unnecessary Service Fees

While many core services are now free, certain convenience features still carry fees. Overnight check delivery: $15 or more. Overnight Schwab-issued checks: $15. Returned or bounced checks: $25 fee. You can avoid these fees by using electronic transfers instead of paper checks and ensuring sufficient funds before initiating transactions.

Similarly, opt for electronic statements instead of paper statements, which some brokers charge for. Use standard withdrawal methods rather than expedited options, and plan ahead to avoid rush fees.

Leveraging No-Transaction-Fee Mutual Funds

Many brokerages offer platforms with hundreds or thousands of no-transaction-fee (NTF) mutual funds. While these funds may have slightly higher expense ratios than their transaction-fee counterparts, they can be cost-effective if you're making regular contributions or don't have access to commission-free ETFs.

However, be aware of potential early redemption fees. A few Vanguard mutual funds charge special purchase and/or redemption fees that are paid directly to the funds to help cover higher transaction costs and protect long-term investors by discouraging short-term, speculative trading.

Comparing Brokers to Find the Best Value

Not all brokers are created equal when it comes to fees and costs. Conducting a thorough comparison can help you identify the platform that offers the best value for your specific investing style and needs.

Key Factors to Compare

When comparing brokers, look beyond headline commission rates. Brokerage fees might include various charges. Though it may not be in plain sight, there will be a page detailing each brokerage fee. If you have questions, call customer service and ask before opening an account.

Consider the total cost of ownership, including trading commissions, account fees, fund expense ratios for available investments, margin rates if you plan to use leverage, and any specialty fees for the types of investments you plan to make.

Matching Broker to Investment Style

US stocks/ETFs + options: your conditions are mainly commissions, options contract fees, and margin rates (if you borrow). CFDs / leveraged trading: your conditions are mainly spreads + overnight/financing costs + key account fees. Different brokers excel in different areas, so choose one that aligns with your primary investment activities.

For long-term buy-and-hold investors focused on stocks and ETFs, a broker with zero commissions and a wide selection of low-cost index funds is ideal. For options traders, focus on per-contract fees and platform capabilities. For international investors, consider currency conversion fees and access to foreign markets.

Reading the Fine Print

Always review the complete fee schedule before opening an account. Brokers are required to disclose their fees, but the information isn't always prominently displayed. Look for the official pricing guide or commission schedule, typically found in the "Pricing" or "Fees" section of the broker's website.

Pay particular attention to fees that might apply to your specific situation, such as transfer fees if you plan to move assets from another broker, wire transfer fees if you need to move money quickly, or foreign transaction fees if you invest in international securities.

Advanced Strategies for Cost Reduction

Beyond the basics, there are several advanced strategies that sophisticated investors can use to further minimize costs and maximize returns.

Asset Location Optimization

Asset location refers to the strategic placement of different types of investments in taxable versus tax-advantaged accounts. By holding tax-inefficient investments (like bonds or actively managed funds) in tax-advantaged accounts and tax-efficient investments (like index funds or ETFs) in taxable accounts, you can reduce your overall tax burden without changing your asset allocation.

This strategy doesn't reduce brokerage fees directly, but it minimizes the total cost of investing by reducing taxes, which can be an even larger expense than fees for many investors.

Direct Indexing

Direct indexing involves purchasing the individual stocks that make up an index rather than buying an index fund. While this was once only available to ultra-wealthy investors, some platforms now offer direct indexing to retail investors. The primary advantage is the ability to harvest tax losses on individual positions while maintaining broad market exposure, potentially offsetting gains and reducing your tax bill.

However, direct indexing may involve higher transaction costs and requires more sophisticated management, so it's not appropriate for all investors.

Dividend Reinvestment Plans (DRIPs)

Many companies and brokers offer dividend reinvestment plans that automatically reinvest your dividends to purchase additional shares, often with no commission. This allows you to compound your returns without incurring transaction costs, though you should verify that your broker doesn't charge for this service.

Consolidating Accounts

Having accounts spread across multiple brokers can lead to inefficiencies and potentially higher costs. Consolidating your accounts with a single broker can simplify management, potentially qualify you for volume-based fee discounts, and make it easier to implement tax-efficient strategies across your entire portfolio.

Commission-free eligibility applies to the first 25 transactions for clients with at least $1 million to $5 million in qualifying Vanguard assets and the first 100 transactions for clients with at least $5 million or more in qualifying Vanguard assets. Some brokers offer enhanced benefits for clients with larger account balances.

Understanding the Total Cost of Ownership

To truly minimize costs, you need to look at the complete picture of what you're paying to invest. While the expense ratio is a crucial factor, understanding the total cost of ownership, which includes transaction costs, bid-ask spreads, and potential market impact costs, is equally important. Encourage a comprehensive approach to cost analysis that factors in both the explicit expense ratio and the implicit costs.

Explicit Costs

Explicit costs are the fees you can see and calculate directly. These include trading commissions, account maintenance fees, fund expense ratios, advisory fees if you use a financial advisor, and any other clearly stated charges. These are the easiest costs to identify and compare across different brokers and investment options.

Implicit Costs

Implicit costs are less visible but can be equally significant. The bid-ask spread—the difference between the price at which you can buy and sell a security—represents a real cost every time you trade. For highly liquid securities like large-cap stocks and popular ETFs, spreads are typically minimal. For less liquid investments, spreads can be substantial.

Market impact is another implicit cost, particularly for larger trades. When you place a large order, you may move the market price against yourself, effectively paying more (when buying) or receiving less (when selling) than you would for a smaller trade.

Opportunity Costs

Don't overlook opportunity costs—the returns you miss out on due to fees and inefficient investing. Assume, for example, that you want to open an investment account with $10,000 and invest $1,000 per month. You have your choice between two brokerages: one that charges the equivalent of 0.5% in fees and another that charges 1% in fees annually. The difference may seem negligible, but over a 10-year period, choosing the second brokerage would cost you approximately $4,500 more in fees. Over a 30-year period, that would grow to more than $55,000 in additional fees paid.

This dramatic difference illustrates why even seemingly small fee differences matter enormously over long investment horizons.

Special Considerations for Different Account Types

Different types of accounts may have different fee structures and cost-minimization strategies.

Retirement Accounts (IRAs, 401(k)s)

401(k) fees may be charged as a percentage of your account value or as a flat fee to each individual investor. Some generous employers pay the fees on behalf of plan participants. But if your plan is expensive and the investment selection is slim, you can minimize fees by contributing just enough to earn your employer's matching dollars. Then continue saving for retirement in an IRA. If you're able to max that out for the year, you can go back to the 401(k) to continue contributions.

For IRAs, you have complete control over which broker you use, so shop around for the lowest-cost provider that meets your needs. Look for brokers with no account fees, a wide selection of low-cost index funds, and commission-free trading.

Taxable Brokerage Accounts

In taxable accounts, tax efficiency becomes a critical component of cost minimization. Focus on tax-efficient investments like index funds and ETFs, which generate fewer taxable events than actively managed funds. Consider holding investments for more than one year to qualify for long-term capital gains rates, and use tax-loss harvesting to offset gains.

Education Savings Accounts (529 Plans)

529 plans often have limited investment options and may charge higher fees than typical brokerage accounts. Compare plans from different states, as you're not limited to your home state's plan. Look for plans with low administrative fees and access to low-cost index funds. Some states offer tax deductions for contributions to their plans, which can offset higher fees.

Common Mistakes to Avoid

Even knowledgeable investors sometimes make costly mistakes when it comes to fees and costs. Being aware of these pitfalls can help you avoid them.

Focusing Only on Commission Rates

With most major brokers now offering commission-free trading, focusing exclusively on trading commissions is a mistake. Finding the right brokerage account can make a huge difference in the long term, as fees can seriously eat into your investment returns. Whether they're baked into the funds you've selected as an expense ratio, charged as a brokerage fee on your investment account, added on as a stock trading commission when you buy or sell, or charged by an advisor who is helping you sort through it all, it's important that you know what you're paying.

Ignoring Expense Ratios

Small differences in expense ratio compound into massive differences over 20-30 years. Many investors pay close attention to one-time fees but overlook ongoing expense ratios, which can be far more costly over time. Always check the expense ratio before investing in any fund.

Chasing Performance Without Considering Costs

A fund that has outperformed its benchmark in the past may not continue to do so in the future, especially after accounting for higher fees. Full-service brokers can offer expert investment advice, but it may be difficult to justify the higher costs if you're not earning comparatively higher returns. Focus on what you can control—costs—rather than trying to predict which funds will outperform.

Failing to Review Fees Regularly

Fee structures change over time. Brokers may introduce new fees, eliminate old ones, or change their pricing models. Investment funds may increase or decrease their expense ratios. Review your account statements and fee schedules at least annually to ensure you're still getting the best value.

Paying for Services You Don't Use

Some investors pay for premium research, advanced trading platforms, or advisory services they rarely or never use. Evaluate whether you're actually benefiting from any premium services you're paying for, and downgrade to a lower-cost option if you're not using them.

Tools and Resources for Fee Comparison

Several tools and resources can help you compare fees and make informed decisions about minimizing costs.

Broker Comparison Websites

Independent websites like NerdWallet, Investopedia, and The Balance provide detailed broker comparisons, including fee structures, account minimums, and available investment options. These resources can help you quickly identify brokers that meet your needs and offer competitive pricing.

Fund Screeners

Most major brokers offer fund screeners that allow you to filter investments by expense ratio, performance, asset class, and other criteria. Use these tools to identify low-cost funds that fit your investment strategy. If all else is equal, an exchange-traded fund's expense ratio is often times the deciding factor when it comes to investing. A fund's expense ratio is the measure of the cost to run the fund. These operating expenses are taken out of the ETF's assets, thus lowering the return for the investors. The lower the expense ratio, the lower the cost of fund ownership.

Fee Calculators

Many financial websites offer calculators that show the long-term impact of fees on your investment returns. These tools can help you visualize how seemingly small differences in expense ratios or account fees compound over time, motivating you to seek out lower-cost options.

Broker Fee Schedules

Always consult the official fee schedule from your broker or prospective broker. These documents provide comprehensive information about all fees and charges, though they may require some effort to locate and interpret. Look for documents titled "Fee Schedule," "Pricing Guide," or "Commission Schedule" on the broker's website.

The Future of Brokerage Fees

The brokerage industry continues to evolve, with fee structures changing in response to competition, technology, and regulatory developments.

Continued Fee Compression

Fortunately for investors, ETFs' average expense ratios has been falling for many years. From 2008 to 2024 average index equity ETF expense ratios declined by 30% and average index bond ETF expense ratios fell by 25%. In 2024, the average expense ratio for index equity ETFs declined 1 basis point to 0.40%. The average expense ratio for index bond ETFs declined 1 basis point to 0.20%.

This trend is likely to continue as competition intensifies and technology reduces operational costs. Investors can expect even lower fees in the future, particularly for passive index funds and ETFs.

Zero-Fee Funds

Fidelity is one of very few brokers that offers access to no-expense-ratio index funds. The other is E*TRADE. The catch is that you need a brokerage account with these companies to access them. While zero-fee funds are still relatively rare, they represent the logical endpoint of fee compression and may become more common in the future.

New Fee Models

As traditional revenue sources like trading commissions disappear, brokers are exploring new business models. Some are focusing on premium services, subscription-based pricing, or payment for order flow. Understanding these evolving models will help you make informed decisions about which broker offers the best value for your needs.

Creating Your Personal Fee-Minimization Strategy

Armed with knowledge about fees and cost-reduction strategies, you can create a personalized plan to minimize your investment costs.

Step 1: Audit Your Current Costs

Start by reviewing all the fees you're currently paying. Examine your brokerage statements to identify account fees, trading commissions, and any other charges. Review the expense ratios of all the funds you own. Calculate your total annual cost as a percentage of your portfolio value.

Step 2: Identify Opportunities for Reduction

Look for high-cost funds that could be replaced with lower-cost alternatives offering similar exposure. Identify any account fees you're paying that could be eliminated by switching brokers or account types. Consider whether you're paying for services or features you don't actually use.

Step 3: Implement Changes Strategically

Make changes in a tax-efficient manner, particularly in taxable accounts. Consider the tax implications of selling funds to switch to lower-cost alternatives—sometimes it may be better to hold a higher-cost fund if selling would trigger substantial capital gains. In tax-advantaged accounts, you can make changes without tax consequences.

Step 4: Monitor and Adjust

Review your fees at least annually and whenever you make significant changes to your portfolio. Stay informed about new low-cost investment options and changes to broker fee structures. As your portfolio grows and your needs evolve, your optimal fee-minimization strategy may change as well.

Conclusion

Minimizing fees and costs in your brokerage accounts is one of the most reliable ways to improve your investment returns. Unlike trying to pick winning stocks or time the market, reducing costs is entirely within your control and has a predictable, positive impact on your long-term wealth accumulation.

By understanding the various types of fees, choosing low-cost investment options, minimizing unnecessary trading activity, and taking advantage of fee-free accounts and features, you can keep more of your money working for you. Even a small brokerage fee will add up over time; a few investment fees together can significantly reduce your portfolio's return.

The strategies outlined in this guide—from selecting low-cost index funds to optimizing your asset location to consolidating accounts—can collectively save you tens of thousands of dollars over your investing lifetime. In an era where many brokers offer commission-free trading and expense ratios continue to decline, there's never been a better time to be a cost-conscious investor.

Remember that every dollar you save in fees is a dollar that remains invested and continues to compound over time. By making fee minimization a priority and regularly reviewing your costs, you'll be well-positioned to achieve your long-term financial goals while keeping more of your hard-earned returns.

For more information on choosing the right brokerage and investment strategy, explore resources from reputable financial education sites like Investor.gov, the SEC's investor education website, which provides unbiased information about investing and avoiding fraud.