How to Compute Transaction Fees

This section explains how much an entire stock transaction would cost you, starting from the price of your selected stock down to the fees that you need to pay for broker's services and, of course, the dreaded tax.


BUYING TRANSACTION

For example, Mr. Green wishes to buy a stock whose market price is P10.00. Based on the Board Lot Table, the number of shares he can buy at a regular transaction should be in multiples of 100 shares. In this case, if Mr. Green wants to buy 500 shares (which is a multiple of 100 shares) his required cash outflow will be as follows:

SELLING TRANSACTION

For example Ms. Yellow wishes to sell a stock that is trading at P5.00. Based on the Board Lot Table, the number of shares she can sell at a regular transaction should be in multiples of 100 shares. In this case, if Ms. Y wants to sell 500 shares (which is a multiple of 100 shares), her cash inflow will be as follows:

* Broker s commission varies depending on value of transaction, with a maximum allowable commission rate of 1.5%.

**If a selling client has certificates, he/she needs to have this converted into book-entry form in the PCD system. A cancellation fee of P20.00 + 12% VAT and transfer fee of P100.00 + 12% VAT will be charged. In the illustration above, the combined cancellation fee and transfer fee to be paid by the selling client will amount to P134.40 (P22.40 + P112.00).