Since you are using an online broker, treat it as your "rent" payment when using their platform. Now let us breakdown the trading fees involved when your orders gets filled.
Be reminded that cancelling your orders will incur no fees as long as no part of your orders got filled. Trading fees only applied to every orders that got "matched" in the market.
Buying and Selling
| Percent | Fee | Remarks |
| 0.25% | Commission | of Gross Trade or min. of ₱20 |
| 12% | VAT | of Commission |
| 0.005% | PSE Trans Fee* | of Gross Trade |
| 0.01% | SCCP | of Gross Trade |
| ADDITIONAL FEE FOR SELLING |
| Sales Tax=No. of Shares x Price x 0.006 |
*Some brokers don't charge PSE Transaction fee, you may check with your broker.
Sample Computation:
Stock: JFC
Shares: 10
Buy Price: ₱138.00
Gross: ₱1380.00
BUY ORDER
Commission
₱1380.00 x 0.0025 = ₱3.45
less than the minimum, so required to pay ₱20 instead
VAT
₱20 x 0.12 = ₱2.40
PSE Trans Fee
₱1380.00 x 0.00005 = ₱0.069
SCCP
₱1380.00 x 0.0001 = ₱0.138
Total Amount to be paid
₱1380 + ₱20 + ₱2.40 + ₱0.069 + ₱0.138 = ₱1402.61
SELL ORDER
Stock: JFC
Shares: 10
Sell Price: ₱144.00
Gross: ₱1440.00
Commission
₱1440.00 x 0.0025 = ₱3.60
less than the minimum, so required to pay ₱20 instead
VAT
₱20 x 0.12 = ₱2.40
PSE Trans Fee
₱1440.00 x 0.00005 = ₱0.072
SCCP
₱1440.00 x 0.0001 = ₱0.144
Sales Tax
₱1440.00 x 0.006 = ₱8.64
Total Amount to receive
₱1440 - ₱20 - ₱2.40 - ₱0.072 - ₱0.144 - ₱8.64 = ₱1408.74
On "buy" orders you simply add those fees to your total "buy" gross amount, while sell orders will be deducted to your total "sales" gross.
If you notice both buy and sell order pays the minimum ₱20 commission fee because computed is less than the minimum, so it's best practice making orders at least worth ₱8000 to avoid those losses in com fees.
That's how fees adds up and deducted to your total "gross" trade amount, so be aware if upon purchase your Portfolio will automatically shows a negative gain due to fees applied.
Check other post for added info.
