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What are regulatory transaction fees?

Certain regulators impose transaction fees to cover their costs of regulating the brokerage industry. The fees are passed through to customers as part of normal transaction processing. These fees will appear as a line item called “Estimated Fee” during order entry and will also be listed on your trade confirmations as a “Transaction Fee” or an “Additional Fee.”

Below is a list of fees that will apply:

Securities and Exchange Commission (SEC) fee:
This fee is levied on all security sales. The current rate is $20.70 for every $1,000,000 in sale proceeds. For a rough calculation of this fee, multiply $0.0000207 times your sale proceeds. Sale Proceeds = $10,000. Current SEC fee rate = $0.0000207 ($20.70 per $1 million in sale proceeds). Total SEC fee = $0.21 ($10,000 x $0.0000207 = $0.21). SEC fee rate is typically adjusted semi-annually. Fee is rounded up to the nearest penny.

Financial Industry Regulatory Authority (FINRA) transaction fee (TAF):
This fee is charged on all covered stock and ETF sales at a rate of $0.000119 per share with a minimum charge of $0.01 and a maximum charge of $5.95. This fee is rounded up to the nearest penny.