I posted about some fees I experienced last Friday or so, and I just called to double check on everything. Here is what I found out.
In regards to SELLING:
The SEC charges .0001 per share on all sales.
The NASD charges .000048 on the principal.
Now this should be applied to everyone across the board since its regulating fees, not necessarily a Lowtrades only fee. But, it still would be really nice if they told us about these fees on their website. I've got a few hundred thousand shares laying around, and I'm gonna take a big hit once I sell....so profit making is harder to do like always.
Oh, and if any Freetrade(or Scottrade, ameritrade, etc) users are reading this, do you experience fees like this also?
posted
Sounds like someone is giving you a load of BS. The SEC doesn't collect fees on every stock transaction. And as for NASDAQ; they could only collect fees on stocks traded through their exchange--if it's something like a pink sheet stock, NASDAQ would have no authority to collect a fee on the transaction.
Edit: FYI the SEC fee schedule for the exchanges is here: http://www.sec.gov/answers/sec31.htm As you can see; it is calculated as $XX per $1,000,000 of transactions. I don't think it would be legal for a broker to translate their exchange imposed SEC fees into a per share fee, if that's what you're claiming Lowtrade is doing.
Understand that if they're telling you there is an SEC fee on the transaction, it's BS; exchanges are charged the fee, which is passed to brokers and they have the right to pass those fees on to their customers, but the fee is not directly applied by the SEC to the transaction.
[This message has been edited by competentone (edited February 03, 2004).]
posted
I truly hope that I'm wrong about these fees, but they've told me the same twice. Again, these two fees I'm talking about apply to SELLING ONLY from what I've been told.
The .0001 fee seems to be for every single share, but I need other Lowtrade users to verify this. If they aren't receiving these fees when SELLING let me know, cause I'm being ripped off.
These fees dont seem right to me though, just from a logical standpoint. Think of yesterday's run on QBID. Assume you buy $100 at .0001(1 mil shares), then sell it at .0002. With these misc fees, you would be charged .0001 x 1 Mil shares, or $100 dollars. Even though you doubled your money for the day, you'd immediately lose $100 to misc fees, and then more to your transaction fees. In the end, you'd come out at a loss. These fees would basically kill us if we trade at any .0001 level stock, and don't at least triple the worth.
So just looking at that example...I'm very confused. Because according to Lowtrades, that is exactly what would happen.
Again, someone else out there, please look at the trade confirmations that are mailed to your home, and let me know whats going on with your trades.
posted
Norman --- All of my buys and sells are Limit orders. A trailing stop is not allowed for sub-penny stocks(it has to be $5+ to be used on Lowtrades).
competentone --- Thanks for the link, I read it quickly and it talks about a fee once you're up in the million dollar range...which I can assure you I'm not. I really hope and believe that I'm being screwed over, which is good in this case. That way I can argue the fee, and hopefully not be hit with any future fees for simply selling a stock.
And to everyone else reading this post, please keep posting your thoughts or experience with Lowtrades. I know there are a bunch of us Lowtrades users on the board, and I need everybody to help out with this one. If we can get my fee figured out, maybe we can all avoid this in the future.
posted
No Green neither am I...it sucks cause it's our best bet right now till we can afford Freetrades. It's still not letting me in with 1 Million, not even 600,000...pissing me off!!
Although QBID made me some quick money yesterday ...too bad you couldn't get in !!
quote:Originally posted by GreenKnight37: Same happened to me yesterday. Lowtrades wont allow a purchase of 2,000,000 shares, but 1 Mil seems to do just fine.
My opinion, they're trying to hit us with the $5 dollar transaction fee as much as possible. I'm not too happy with Lowtrades right now
charge as an American sale fees only 0.0048% also for pink
quote:Originally posted by GreenKnight37: I truly hope that I'm wrong about these fees, but they've told me the same twice. Again, these two fees I'm talking about apply to SELLING ONLY from what I've been told.
The .0001 fee seems to be for every single share, but I need other Lowtrade users to verify this. If they aren't receiving these fees when SELLING let me know, cause I'm being ripped off.
These fees dont seem right to me though, just from a logical standpoint. Think of yesterday's run on QBID. Assume you buy $100 at .0001(1 mil shares), then sell it at .0002. With these misc fees, you would be charged .0001 x 1 Mil shares, or $100 dollars. Even though you doubled your money for the day, you'd immediately lose $100 to misc fees, and then more to your transaction fees. In the end, you'd come out at a loss. These fees would basically kill us if we trade at any .0001 level stock, and don't at least triple the worth.
So just looking at that example...I'm very confused. Because according to Lowtrades, that is exactly what would happen.
Again, someone else out there, please look at the trade confirmations that are mailed to your home, and let me know whats going on with your trades.
posted
Sorry for the bump, but I'm still looking for any other Lowtrade users to confirm the selling fees.
So far its just Marcidius and myself, so if anyone else can spare a few minutes to check their hard-copy statements for Misc fees, it would be greatly appreciated.
quote:Originally posted by GreenKnight37: Sorry for the bump, but I'm still looking for any other Lowtrade users to confirm the selling fees.
So far its just Marcidius and myself, so if anyone else can spare a few minutes to check their hard-copy statements for Misc fees, it would be greatly appreciated.
quote:Originally posted by guy: sold fnix on 1/27/04 100,000 shares @.0136 misc. fees were 23.62 on top of 5.oo out fee.
Thanks for checking your statements Guy. To be honest though, I'm not sure how they calculated your Misc fee. If it is in fact .0001 per share, it should have been $10 dollars. I'm not sure what the 13.62 difference is. But regardless...its enough to prove that Lowtrades is hitting us with fees that they dont disclose up front on their website.
Do other brokers charge these fees? If they dont, I'm going to switch somewhere else and just pay the few dollars more per trade. Otherwise I'd be losing too much profit for each sale.
posted
Reply from Lowtrades.com (so far, I am happy with Lowtrades)---
Sir,
We apologize for the delay in our response.
Our commission is a flat rate $5 on all transactions. Assuming you route the order to our "Default" route, as most of our customers do, you will not be charged any additional ECN fees. The only other fees to consider are the NASD Trading Activity Fee and the SEC fee.
These are both small charges levied by the NASD and the SEC on some sell-side transactions.
The TAF fee is $.0001 per share capped at $10, and the SEC fee is $46.80 for every $1,000,000.00 (or $.0000468 per dollar of principal).
This means that a regular buy order (market, limit, stop, stop-limit) will cost the amount of the principal plus $5. Some sell side transactions will have the above listed fees imposed, but rarely amount to more than a couple dollars above the commission.
There is also a Block Trading Fee that applies only to orders of greater than 100,000 shares. This is due to the significantly higher cost of delivering large share quantities, especially for penny stocks. This fee is $.0005 per share or 1% of the principal, whichever is lower. Again, this is generally a small amount on large orders.
If you have any further questions, do not hesitate to ask.
quote:Originally posted by Norman: [from Low Trade] The only other fees to consider are the NASD Trading Activity Fee and the SEC fee.
These are both small charges levied by the NASD and the SEC on some sell-side transactions.
The TAF fee is $.0001 per share capped at $10, and the SEC fee is $46.80 for every $1,000,000.00 (or $.0000468 per dollar of principal).
This is pretty deceptive by Low Trade, the SEC charges the the exchanges, the exchanges charge the brokerage; the brokerage company can collect the fee anyway they choose--they don't have to "itemize" the charge and list it for their customers. Low Trade makes it sound like they are "obligated" to collect these fees as an "add-on" to their commissions as they do.
[This message has been edited by competentone (edited February 06, 2004).]
posted
Principal = Gross amount (or it means something else???)
for 100000 GZFX is $10000 * 1% = $100.- so the .0005 x share is cheaper
I think i am correct - see the $13.62 charges at GUY in the above example (it's 1%)
quote:Originally posted by Marcidius: It's max 1% of the principle, so for PGHI now GZFX it would not be 50, I don't see a way at ALL That it could be that much for a sell.
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...too bad you couldn't get in 
!!
