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Guide Stock Fees

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John Philip Echevarria
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18 views4 pages

Guide Stock Fees

Uploaded by

John Philip Echevarria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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FEES AND

RATE OR AMOUNT CHARGED TO


CHARGES

Broker's Max of 0.25% of gross trade Buyers and


Commission amount or P20, whichever is higher Sellers of stocks

VAT on Broker's Buyers and


12% of Broker's Commission
Commission Sellers of stocks

SCCP or Clearing Buyers and


0.01% of gross trade amount
Fee Sellers of stocks

PSE Transaction Buyers and


0.005% of gross trade amount
Fee Sellers of stocks

Stock Transaction
0.5% of gross trade amount Sellers only
Tax

1. Broker’s Commission

The fee charged by a stock broker (such as COL, BPI Trade, Accord Capital, First
Metro Securities, etc.) whenever a customer buys or sells stocks using their
platform.

This is basically how brokers make money, and they charge this fee for every
trade make, regardless if the customer is making a profit or loss. Broker’s
commissions vary per broker, but the maximum they can charge is 1.5% of the
transaction amount or a fixed minimum fee of P20, whichever is higher. The
transaction is also charged the government tax of 12% VAT.

2. SCCP or Clearing Fee


The fee charged by the Securities Clearing Corporation of the Philippines (SCCP), a
wholly-owned subsidiary of the PSE, which facilitates clearing and settlement of
stock transactions. The clearing fee is 0.01% of the transaction amount.

3. PSE Transaction Fee

All stock trades go through the exchange or the PSE, and for that, the PSE
charges 0.005% of the gross trade amount of every transaction.

4. Sales Tax

Charged only to sellers of stocks, the sales tax is 0.5% of the gross sales amount.
Take note that this tax is charged even if the transaction resulted in a loss for the
seller.

Sample Computation of Fees for a Buying Transaction 

Let’s assume you want to buy 10 shares of Globe Telecom (Stock Code: GLO) at a
price of P2,500. Let’s also assume, for this example, that the broker’s fee is 0.25%
— similar to what most online stockbrokers in the Philippines are charging.

The fee computation is as follows:

 Gross Transaction Amount: 10 shares * P2,500 share price = P25,000.00

 Add: Broker’s Commission: 0.25% * P25,000 = P62.50

 Add: VAT on Broker’s Commission: 12% * P62.50 = P7.50

 Add: SCCP Fee: P25,000 * 0.01% = P2.50

 Add: PSE Transaction Fee: 0.005% * P25,000 = P1.25

 TOTAL BUYING TRANSACTION COST: P25,073.75

SUMMARY: To buy 10 shares of GLO at P2,500, one has to shell out a total of
P25,073.75.

Sample Computation of Fees for a Selling Transaction 


If you are to sell stocks, how much proceeds will you receive, net of all fees and
charges?

Basically, you will be paying the same fees above, plus the 0.5% stock transaction
or sales tax. For a sample computation, let’s use the same assumptions above (sell
GLO shares at P2,500, with the same broker’s commission rate of 0.25%). This
time, there is an additional fee, the stock transaction or sales tax charged to
sellers of stocks.

 Gross Transaction Amount: 10 shares * P2,500 share price = P25,000.00

 Less: Broker’s Commission: 0.25% * P25,000 = P62.50

 Less: VAT on Broker’s Commission: 12% * P62.50 = P7.50

 Less:SCCP Fee: P25,000 * 0.01% = P2.50

 Less: PSE Transaction Fee: 0.005% * P25,000 = P1.25

 Less: Stock Transaction Tax: 0.5% * P25,000 = P125.00

 TOTAL PROCEEDS FROM SELLING TRANSACTION: P24,801.25

SUMMARY: The total amount you’ll receive for this selling transaction is


P24,801.25 [computed as P25,000 gross proceeds less P198.75 total fees and
charges].

MINIMUM
BOARD LOT (LOT
STOCK PRICE FLUCTUATIONS (TICK
SIZE)
SIZE)

A 0.0001 - 0.0099 0.0001 1,000,000


MINIMUM
BOARD LOT (LOT
STOCK PRICE FLUCTUATIONS (TICK
SIZE)
SIZE)

B 0.0100 - 0.0490 0.0010 100,000

C 0.0500 - 0.2490 0.0010 10,000

D 0.2500 - 0.4950 0.0050 10,000

E 0.50 - 4.99 0.010 1,000

F 5.00 - 9.99 0.010 100

G 10.00 - 19.98 0.02 100

H 20.00 - 49.95 0.05 100

I 50.00 - 99.95 0.05 10

J 100.00 - 199.00 0.10 10

K 200.00 - 499.80 0.20 10

L 500.00 - 999.50 0.50 10

M 1,000 - 1,999 1.00 5

N 2,000 - 4,998 2.00 5

O 5,000 - up 5.00 5

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