$23.10 per transaction of stock in the US?

[1a2b3cppp]

Before this morning I sent an email to a company to question them about their fees which are without charge to buy but $23.10 to sell. They said that each sale of stock in the US (for all brokerages, not just Robinhood) is charged $23.10 per $1,000,000 per principal.

Actually?

I have a Scottrade account and it's $7.00 per trade.

Is this a new rule?

Or is that how they make money with giving people free buys and massive sells?

 

[Robert Morse]

Not new. sec section 31 fee.

https://www.sec.gov/news/press-release/2017-183

 

[1a2b3cppp]

Is this going to make Scottrade change their $7 amount?

 

[Robert Morse]

Is this going to make Scottrade change their $7 amount?

Not sure what you are asking. As far as I know every broker passes this fee to the account owner. BTW, we charge $4.50/trade. On Web trader there are no routing fees, market data fees or platform fees. https://www.lightspeed.com/trading-platforms/lightspeed-web-trader/
Not a DMA platform.

 

[1a2b3cppp]

When I read that it said it was $23.10 to sell up to $1,000,000 dollars.

In this case, how can someone charge $7?

 

[Robert Morse]

In this case, how can someone charge $7?

That is the commissions with a pass through of reg fees.

 

[mbondy]

That is the commissions with a pass through of reg fees.

I think he thinks it's legitimately $23.10 to sell shares of a stock whereas it's 'the proceeds of sale x 0.00002310'.

OP, it's an SEC fee, if you sell 1000 shares of a $10 stock, the fee is $0.23. Get it?

 

[1a2b3cppp]

Is it possible for them to be anymore misleading? $23.10 up to $1,000,000 of stock. That reads the same as $23.10 for even $20 of stock.

 

[Robert Morse]

Is it possible for them to be anymore misleading? $23.10 up to $1,000,000 of stock.

Sorry, but it is not misleading. It is accurate. It is not based on shares sold but the dollar amount.

 

[ajacobson]

I think if you dig down into must e Broker's fixed rate prices - they generally don't include fees and there are special handling fees for large orders. Also generally some size limitations. All means if it doesn't fit the "standard" parameters for their version of electronic execution - it costs more. Dig down into your fine print.