Commission for the purchase of shares, its types and impact on the financial result of the transaction
Investments in securities can be called the second most popular way to save savings after bank deposits.
Moreover, in some cases, the increase in the value of the security and the amount of dividends paid allows you to receive a profit greater than the interest on a bank deposit.
But unlike deposits, investing in securities is not so simple; there is a commission when purchasing shares, and in some cases, a fee for transferring positions to the next day.
Therefore, it is worth figuring out which option for purchasing shares is more preferable for long-term investments, and which is suitable only for intraday transactions.
For clarity, you can compare how significant this difference is:
It should be noted that there is a difference in commissions when trading on a PRO account and when using a standard account. At the same time, to open a PRO account, a deposit of $10,000 is required.
The commission for buying shares is $0.009 for classic trading on a professional account, $0.025 for a standard account, and $0.020 per share for CFDs. That is, we can say that when trading on a PRO account you pay half as much.
Minimum commission – the amount you will pay when opening a trade, PRO account – 0.5 dollars, classic account – 2 dollars, CFD account – 2 dollars.
Everything becomes clearer with a specific example: you have a CFD account, you bought 1 share, but instead of $0.02 you pay $2 for opening a transaction. At the same time, if you buy 100 shares, the opening fee will still be 2 dollars 100*0.02=2 dollars.
Commission for transferring positions to the next day - this fee is charged only if you use the broker's leverage and open trades with a volume of more than 1:1.
In this case, you will need to pay 7% per annum for borrowed funds or about 0.02% for a one-day transfer. For example, own funds are 10,000, leverage is 1:3, transaction volume is 30,000, in this case 7% per annum is charged on the amount of 20,000.
Spreads for opening a transaction - in addition to the commission when purchasing shares, a spread is also charged; its value, regardless of the type of account, is $0.01.
As you understand, this is the minimum fee, which may increase depending on the asset:
For example, the spread on Apple shares is 4 points or $0.04, while the cost of the share itself is $172.
Analyzing the size of the commission when purchasing shares, we can say that it has practically no significant impact on the financial result.
For example, you bought 100 shares of Apple at $172 for a total of $17,200. The fee for opening a transaction will be = commission + spread = 17.2+(0.04*100) = $21.20. In order to return the money paid for opening a transaction, it is enough for Apple shares to rise in price by only $0.22.
Brokers for trading shares - https://time-forex.com/vsebrokery/brokery-fondowogo-rynka