Costs
Before you buy or sell, know the small charges around the trade.
Do not look only at the stock price. A trade can also include broker commission, exchange/settlement fees, taxes, and other charges depending on the transaction.
When buying
Expect the stock cost plus broker commission, VAT on commission, exchange transaction fee, and clearing/settlement fee.
When selling
Selling also has fees, and stock transaction tax applies to listed shares traded on the exchange.
Certificates are extra
If you request a physical stock certificate, there may be upliftment/withdrawal and transfer-related charges.
Dividends may have tax
Cash dividends can be subject to withholding tax depending on investor type and residency.
| Cost | Simple explanation |
|---|---|
| Broker commission | Payment to the broker for executing the trade; structure can vary by broker. |
| PSE transaction fee | Small exchange fee based on transaction value. |
| Clearing/settlement fee | Small fee for clearing and settlement processing. |
| Stock transaction tax | Charged to sellers on listed equities traded on the exchange. |
Beginner reminder
Do not use your last household cash for trading. Treat stock investing as risk money, not pambayad sa kuryente, tuition, rent, or inventory.