Being a new trader myself I thought I would start this thread to place thing that catch me by surprise.
Most people know the expense of commission on doing their trading, but may not catch some of the expenses that are so easily over looked.
Section 31 fees and how are they calculated?
The normal calculation for Section 31 fees is 15.30 per $1,000,000 (or 0.0000153 * each $1 of the sale) in principle amount on sales.
100,000 shares of INXR @ 0.0004 = $40.00 be subject to a Section 31 fee of $.01.
no big deal
FINRA's Trading Activity Fee (TAF)
Trading Activity Fee rates are as follows: Each member shall pay to NASD $0.000075 per share for each sale of a covered equity security,(same stock as above 100,000 shares * 0.000075 = $7.50) with a maximum charge of $3.75 per trade; $0.002 per contract for each sale of an option; $0.04 per contract for each round turn transaction of a security future; and $.00075 per bond for each sale of a covered TRACE-eligible and/or municipal security, with a maximum charge of $0.75 per trade. In addition, if the execution price for a covered security is less than the Trading Activity Fee rate ($0.000075 for covered equity securities, $0.002 for covered option contracts, or $0.04 for a security future) on a per share, per contract, or round turn transaction basis then no fee will be assessed.
Not all brokerages charge these fees separate..... Zecco does
Fees in FAQ
(I think) Etrade doesn't charge for the first 2,000 shares in their standard commission rate, but watch out cause apparently they really stick it to you after the 2,000 shares ( For orders involving securities listed on a national securities exchange (i.e., "listed securities") a fee of $0.015 per share will apply to that portion of the order that exceeds 2,000 shares. )
ETrade commission and Fees
I couldn't find any information on TD America either charging these fees seperated or figured in with the commission, and got tired of looking so be sure to find out if you will have to pay these fees separate.
In Zecco's case that no commission cost will still cost you $3.75 out of pocket on the sale of over 50,000 shares even if those shares only cost 0.0001 per share or $5.00.
Something for Newbies to be aware of
Happy
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