SEC and other fees on top of your commissions

Discussion in 'Prop Firms' started by Vulva, Oct 4, 2002.

  1. Vulva


    Can anyone outline other fees that your firm may be charging on top of your per share commissions?

    My friend who works at a prop firm tells me that his firm charges him an extra $40 each day on top of his commissions for about 40,000 shares a day. They told him it was SEC fees, but $40 seems too much even for that. Might not seem too much for many, but it's about the price of a month's rent for me.
  2. $40 is probably right, I did 22K shares today and paid $19 SEC fee.
  3. The SEC recently increased their fee's per share of stock. They pretty much doubled it. So $40 for 40,000 shares is about right for SEC fee's.
  4. Tony01


    The SEC charges a fee of 1/300 of 1% of the total dollar amount of securities sold.

    So if you trade 40000 shares of stock at an avg. $30 a share, $40 would be right on.
  5. SEC fees were covered. The other one to look at is desk fees, any sort of ticket charges, and NYSE orders sitting in the market over 5 minutes are considered Specialist Billable orders and charged an additional .01 by the specialist which is passed directly to the trader.


  6. only thing I can say is when someone says, "we'll give you a penny per share", ask if it's all inclusive.

  7. Vulva,

    As the other astute members have pointed out SEC fees are based on the value of the stock traded. Hence, trading a $2 stock costs significantly less in SEC fees than does trading a $20 stock. What stock is your 'friend' trading?

    How is this "other charge" itemized ?
    What firm is your 'friend' trading through?
    What software is your 'friend' using?

    These questions may help provide answers since some firms break out things such as SEC fees, pass-thru fees, software fees, exchange fees,.... well you get the picture. While others lump every thing together as 'commissions'.

    Answers to the above may help some members here identify what those charges are for you.
  8. bro59


    Many (all?) "pro" firms do not lump SEC fees into their advertised rate schedule; therefore, the trader is paying this on top of commish. There are firms out there on the retail side, and perhaps non-retail, which will give an all-in schedule which includes SEC fees. IB comes to mind as one that does. Know what you are paying.