How much does it cost to trade 100,000 yuan of stocks?How is it calculated?

Mondo Finance Updated on 2024-01-19

Trading is a form of investment that can be bought and sold to earn income. However, there are also certain fees to be paid for transactions, the most important of which is the processing fee. So, how is the transaction fee calculated?This article will answer this question for you.

*The transaction fee is mainly composed of two parts: commission and stamp duty. Commission refers to the service fee charged by the brokerage to investors, which is generally charged according to a certain percentage of the transaction amount. Stamp duty refers to the tax charged by the state to investors, which is generally only collected when selling **, and is charged according to a certain percentage of the transaction amount.

The proportion of commissions is set by the brokers themselves, generally around 10,000, and some brokerages offer commissions as low as 0.5/10,000. The proportion of stamp duty is set by the state and is currently 0 per thousand5。Therefore, the formula for calculating the commission of the **transaction is:

Handling fee = ** amount commission ratio + selling amount (commission ratio + stamp duty ratio).

For example, if you use a brokerage whose commission ratio is 3/10,000, then the commission for your trade of 100,000 yuan** is:

Handling fee = 100000 00003+10×100000×(0.0003+0.0005) = 110 yuan.

Different brokers have different commission ratios, and the fees incurred will not be the same, which will affect your handling fees, so when you choose a broker, you should compare the commission ratios of different brokerages and choose a suitable broker to reduce your transaction costs.

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