The cost of a standard equity transaction is made up of:
- a stockbrokers’s fee,
- taxes,
- a levy for the adminsitrative cost of the electronic settlement system,
- insider trading levy and
- other compulsory administrative charges.
Brokerage
Your broker could charge you a percentage of the value of your trade, depending on the size of the trade and the nature of the service required.
- All brokers charge a minimum per deal, even if your order is very small.
- If your investment is too small, the charges could dilute your returns considerably. Your investment would need to deliver sizeable returns before expenses are recovered.
