Understand all the FEES when trading a stock

Discussion in 'Trading' started by WhiteOut56, Mar 7, 2012.

  1. Okay....

    So you trade a stock I want to understand what all the fees are

    1) Commissions (varies by broker)
    2) Ecn fees (varies by exchange)

    3) SEC fee
    4) NSCC fee
    5) TAFT fee

    * Also are the fees different for Nasdaq & NYSE Stocks?

    What are the EXACT values for 3, 4, 5? Also are there any more "Other" fees?
     
  2. Opportunity cost
     
  3. what country are you trading from? if outside the us, use an offshores broker dealer, such as alliance trader
     
  4. rmorse

    rmorse ET Sponsor

    SEC Effective on April 1, 2012, the Section 31 transaction fee rate will be set at $22.40 per million. (Right now I think it's around $18/million)
    http://www.sec.gov/news/press/2012/2012-35.htm. This only is charge for the sell side

    NSCC, DTC fee: I think 0.00020 per share

    TAFT:?? not sure
     
  5. This is for equities.

    3) SEC fee:
    Only applies when you sell or short a stock.
    Currently it is $18.00 per million dollars sold but on April 1, 2012 it will go up to $22.40 per million dollars sold (which is strange because it was just lowered from $19.00 on February 15). So this fee is much more if you are selling 100 shares of AAPL than if you sell 100 shares of BAC.

    4) NSCC fee: I think this one might be complicated but usually less than the other two.

    5) Trading Activity Fee:
    Also only applies to sales/shorts. As of March 1, 2012 it is $0.000095 per share but there is a cap of $4.75 per transaction (so capped for transactions greater than 50,000 shares).