We all know that buying or selling stocks do not come free. To maximize our profit, we should take into account brokerage charges and other handling fees associated in every transaction. The following is the list of the corresponding charges executed every time we trade stocks:
Broker commission. These are the fixed fees your broker charges you. Online broker accounts typically range between .25% to .50%, depending on what online account you maintain. Some brokers also charge minimum fees per transaction. For COL financial, for example, they charge P20 broker commission or .25% of the total amount, whichever is higher.
Value Added Tax. Computed as 12% of broker commission amount.
PSE Fee. This is a fixed transaction fee imposed by PSE at .005% of gross amount.
SCCP Fee. Securities Clearing Corporation of the Philippines handles the clearing of the transactions and processing of certificates. SCCP charges a fixed fee of .01%
Selling Tax. Computed as .5% of gross amount. This fee is only applicable on when you are selling your stocks.
If we are not careful, we might end up losing money without even knowing it because we failed to compute for these charges. Seasoned investors use spreadsheet calculations to easily help them determine their potential profit or loss.
We recognize that most individual investors do not have the skill or time to make their own profit calculator. The good news is you don't have to because we have created one for you!
You have to determine first how much your broker charges you per transaction and if they impose a minimum broker fee to use this file effectively. All you have to do after that is input how many shares you buy, on what price you bought it, and on what price you expect to sell it. The net profit turns green when you incur gains and turns red if a loss is expected.
All you have to do is subscribe to us via email to download the file!
(You can also use the subscribe button on the right if the link is not working)
(You can also use the subscribe button on the right if the link is not working)
Hopefully this enables you to focus more on analyzing your investments rather than tediously computing for these fixed fees. More time means more learning, and more learning means more profits. Happy investing everyone!