What are trading regulatory fees/taxes?
US stocks
Regulators, such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), impose fees on trading US stocks. When applicable, the fees levied will be charged on sell orders and withheld from your sales proceeds.
The SEC levies a $27.80 fee for every $1,000,000 of principal sold, rounded up to the nearest cent.
The FINRA charges brokerage firms a small fee on sell orders, to support the costs of regulation and supervision. For stocks, all sales are charged at a rate of $0.000166 per share. A minimum charge of $0.01, and a maximum charge of $8.30 apply. This is also known as the trading activity fee (TAF).
European stocks
Certain countries, like Spain, France, and Italy, impose a transaction tax (the Financial Transaction Tax), related to buying or selling financial instruments of companies incorporated in that country. This may vary per country and is levied by local authorities.
Currently, this fee will be applicable to buy orders from French, Spanish, and Italian-based companies only:
- FR: 0.4% of the order amount
- ES: 0.2% of the order amount
- IT: 0.1% of the order amount
Other fees
For more information, refer to our Trading Fees FAQ and our Ex-ante Costs & Charges page.