Investor Transaction Fees to Rise
April 9, 2009 by Miranda Marquit
Filed under Finance
One thing to be on the look out for Monday is an increase in investor transaction fees. (It would normally be an increase for tomorrow, but 
the stock market will be closed for Good Friday.) Investor transaction fees represent fees paid to the government. These fees are paid by the stock exchanges, but you know that those guys don’t actually bear the cost — they pass it on down through brokerages and to you.
The change in the fees aren’t that onerous. While they will go up 359%, in dollar terms it’s not that big a deal. Investor Daily on CNN Money points this out about the current increase:
So let’s get to the nub of it all. Even if you’re an active investor, don’t tell your kids they can no longer plan on college because of this sudden and oppressive price increase. The fee for even a $100,000 trade – say, a sale of 2000 shares of a $50 stock – will rise to only about $2.50. You might be able to stand that.
The increase is determined by an algorithm used by the SEC to make sure that it recovers what it needs for its target. At any rate, it is good to know where fees are coming from and why they are charged, even if they seem insignificant. It’s part of responsible finances and keeping track of what is going on.
image source: Beyond Silence via Wikimedia Commons
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Check out what others are saying about this post...[...] on investments will see a return to top rates of more than 20% and an increase in some other fees (investor transaction fees are already on the rise). This doesn’t mean that you need to stop investing. Far from it! Investing — even with [...]