To add insult to injury, if you wanted to avoid these fees and request a paper certificate, the same firm would likely charge you $25 to $50 to get what rightfully belongs to you! Even more salt in the wound? Many companies offer direct stock purchase plans and dividend reinvestment plans that won’t charge you a penny for having stocks safely held with the transfer agent.
The bottom line is this: You should not be paying custodial or safe keeping fees for the right to hold stocks in your account. This is simply a way for hidden charges to ring the cash register at the broker, banks, or wealth management firm at your expense. Demand these fees be waived or you might just need to consider taking your business elsewhere.
For more information on costs you should control, read Frictional Expenses - The Hidden Investment Tax