Stock exchange commission when trading securities, how much the broker will have to pay
Stock trading has always been a highly profitable activity, and where there are high profits, there are high commissions and payments.
If you decide to trade shares of companies, then be prepared to pay for opening trades and maintaining them, in addition, there may be other types of payments.
Some of the existing commissions are charged by the stock exchange, and the rest are taken by the broker, who organizes the trading process.
It simply cannot be any other way, and if it does happen, then most likely you have encountered scammers whose reward will be your deposit.
Today, the stock exchange commission consists of several payments, their size depends on the selected asset and the volume of the opened transaction.
Stock exchange and broker commissions and fees:
Commission is a classic version of the fee for opening a new transaction, usually a fixed amount per share or a percentage of trading turnover.
The minimum commission size starts from $0.006 per share or 0.1% of the transaction volume. Brokers often fix a minimum fee per transaction, for example 0.01 per share, but not less than $1 per order.
As a rule, as volumes increase, commission rates on the stock exchange decrease, that is, the more you trade, the less you pay.
Commission for borrowed funds - this also happens if you use leverage, usually it is not high, but it still occurs.
Brokers for trading on the stock exchange - https://time-forex.com/vsebrokery/brokery-fondowogo-rynka
Spread - if you trade using CFD contracts, then instead of a commission you will have to pay a regular spread, the size of which is fixed.
The size of the spread directly depends on the selected asset and can range from 1 to 100 points.
Therefore, be careful before opening trades. Swap – or fee for transferring positions to the next day. Unlike currency pairs, it is always negative:
For transferring a position when trading CFDs, you pay on average 5% per annum or about 0.014% per day, depending on the direction of the transaction.
Quite a bit, even if you hold the position for a long time. Dividends - we are accustomed to perceive dividends only as additional profit, but in the case of transactions for the sale of shares, the amount of the dividend adjustment is debited from your account on the day the register is recorded.
The size of the write-off can range from a couple of cents to several dollars per share.
As you have already noticed, the commission on the stock exchange also depends on which trading option you have chosen - classic or using contracts for difference.
Each option has its pros and cons, it’s up to you to decide, and the result of the transaction is more influenced not by the commission, but by its correctly chosen direction.