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But 1% is on the total held, not on the capital gains, right?

If that's the case, it affects earnings quite a bit. Say your investments beat inflation by 3 percentage points, you're effectively down to 2 percentage points after tax, so a 33% reduction in income.

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Yea it was better in the years of extremely low rates. 2020-2022 it was 0.375% of total. Now it's up to 0.888% last year. There's some cases where it might be benefitial to use the "normal" account but for average Joe, not having to track every transaction has generally been very benefitial. And as a result 80-90% of adults own some type of stock either directly or through funds/retirement accounts vs the free market utopia us of 62%.

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