Should I stick to fewer companies or diversify considering stock portfolio management fees?

To make this decision, you have to consider the pros of each strategy.

The advantages of diversification include:

• Lower risk of loss
• Increased chances of higher returns
• Lower volatility

On the other hand, having single stocks has benefits such as:

• Reduced fees
• Complete control over your investment
• Straightforward tax management

It might depend on how much money you are investing.

If you are parking a couple of hundred bucks into securities, there is no point in opening up accounts at several different companies. On the other hand, if you are investing vast sums of money, you can go with two companies.

As you noted, be sure to watch out for the stock portfolio management fees.

Also, just to clarify your question, it is a good idea to limit your stocks, depending on how much you are investing. If you are acquiring a couple of shares in a dozen or so companies, you miss out on substantial gains, especially if you are confident in your picks.

Remember, simplicity is best!