Stock Trading Fees

Just like in any market there are fees a trader has to pay for every executed transaction in the stock market.  Whenever you buy or sell stocks, there are certain charges which are automatically deducted from your account such as stock broker’s commission, securities fees and taxes.

Stock broker’s commission varies so it is better to check with your stock broker how much they charge.

In my case, my stock broker is Citiseconline and they charge 0.25% of the gross trade amount for on-line transactions and 0.50% for a telephone transaction or a minimum of 20 pesos per transaction if the calculated commission is 20 pesos or below.

Below are the fees collected for every executed transaction (considering an on-line transaction with citiseconline as broker):

1.       Buying

    

a.       Stock broker’s commission                   =   0.25 % of the gross trade amount

b.      VAT on Stock broker’s commission     = 12 %

c.       PSE transaction Fee                             =   0.005 % of the gross trade amount

d.      Securities Clearing Corporation

of the Phils. fee (SCCP fee)                =  0.01 % of the gross trade amount

2.       Selling

a.       Stock broker’s commission                =  0.25 % of the gross trade amount

b.      VAT on Stock broker’s commission  = 12 %

c.       PSE transaction Fee                            = 0.005 % of the gross trade amount

d.      Securities Clearing Corporation

of the Phils. fee (SCCP fee)                = 0.01 % of the gross trade amount

e.        Sales Tax                                            = 0.005% of the gross trade amount

Here’s a transaction example:

      Buying 100 shares of BPI stock at a price of 59/share:

a.       Commission      = 0.0025 x 59 x 100 =  14.75   = 20  (minimum commission charge)

b.      VAT                  = 20 x 0.12                              =   2.40

c.       PSE                   = 0.00005 x 59 x 100              =   0.30

d.      SCCP Fee         =  0.0001 x 59 x 100                =   0.60

                                                                            -----------

                                                                                23.30 (total charges)

 Total amount to be paid = (59*100) + 23.30    =  5,923.30

      

       Selling 100 shares of BPI stock at a price of 61/share:

           

a.       Commission      = 0.0025 x 61 x 100 =  15.25          = 20  (minimum commission charge)

b.      VAT                  = 20 x 0.12                                     =   2.40

c.       PSE                   = 0.00005 x 61 x 100                     =   0.31

d.      SCCP Fee         =  0.0001 x 61 x 100                       =   0.61

e.       Sales tax           =  0.00005 x 61 x 100                      =   0.31

                                                                                   -----------

                                                                                      23.63 (total charges)

 Total amount to be received = (61x100) – 23.63     =  6,076.37

You should be aware of these charges so you can calculate at what price you are going to sell your stocks in order for you to get a certain profit.