Below are examples of the calculation rules for trading commissions, third-party fees, and margin financing interest in the US stock market.
1. Example:
| Transaction Date | Delivery Date | Market | Currency | Stock code | Side | Price | Trading Volume | Turnover |
| 11 July | 13 July | US | USD | CGA | Buy | 3.70 | 330 | 1,221.00 |
| 11 July | 13 July | US | USD | CGA | Buy | 3.70 | 30 | 111.00 |
| 12 July | 14 July | US | USD | CGA | Sell | 3.60 | 330 | 1,188.00 |
| 12 July | 14 July | US | USD | CGA | Sell | 3.60 | 30 | 108.00 |
2. Rate
| Market | US |
|---|---|
| Currency | USD |
| Charge (Based on transaction amount | 0.0049 USD per share （Min. charge 0.99 USD） |
| Online Trading Platform | 0.005 USD per share （Min. charge 1 USD） |
| Margin Interest | 6.5% |
| Settlement Fee | 0.003 USD per share |
| SEC Fees | 0.0000229 * trading amount, (Min. charge 0.01 USD) For sell order only |
| Trading Activity Fee | 0.00013 USD per share, (Min. charge 0.01 USD),(Max. charge 6.49 USD) For sell order only |
3. Rules
Commission / trading platform fee calculation rules: Commissions are calculated separately
Margin Interest calculation rules：No interest will be calculated before transaction is settled,Interest will be calculated after settlement completes
Lifetime commission-free rule: The card will take effect the next day after activation, and the relevant market will be exempted from trading commission except for Pre-IPO trading.
4. Calculation results
Commission / trading platform fee
Example:
CGA stocks were purchased on 11 July, and two orders completed at different times are considered different orders. Each order will also be treated as separated trades and commissions are calculated separately.
The calculation results are as follows:
| Transaction Date | Delivery Date | Market | Currency | Side | Price | Trading Volume | Turnover | Commission | Platform fee |
| 11 July | 13 July | US | USD | Buy | 3.70 | 330 | 1,221.00 | 1.62 | 1.65 |
| 11 July | 13 July | US | USD | Buy | 3.70 | 30 | 111.00 | 0.99 | 1 |
Example:
CGA stocks were sold on 12 July, and two orders completed at different times are considered different orders. Each order will also be treated as separated trades and commissions are calculated separately.
The calculation results are as follows:
| Transaction Date | Delivery Date | Market | Currency | Side | Price | Trading Volume | Turnover | Commission | Platform fee |
| 12 July | 14 July | US | USD | Sell | 3.60 | 330 | 1,188.00 | 1.62 | 1.65 |
| 12 July | 14 July | US | USD | Sell | 3.60 | 30 | 108.00 | 0.99 | 1 |
Third-party agency fees
CGA stocks were sold on 11 July, and two orders completed at different times are considered different orders.
The calculation results of third-party agency fees are as follows:
| Price | Trading Volume | Turnover | Settlement Fee | SEC Fee | Trading Activity Fee | Total of third-party agency fees |
| 3.70 | 330 | 1,221.00 | 0.99 | For sell order only | For sell order only | 0.99 |
| 3.70 | 30 | 111.00 | 0.09 | For sell order only | For sell order only | 0.09 |
CGA stocks were sold on 12 July, and two orders completed at different times are considered different orders.
The calculation results of third-party agency fees are as follows:
| Price | Trading Volume | Turnover | Settlement Fee | SEC Fee | Trading Activity Fee | Total of third-party agency fees |
| 3.60 | 330 | 1,188.00 | 0.99 | 0.04 | 0.04 | 1.07 |
| 3.60 | 30 | 108.00 | 0.09 | 0.01 | 0.01 | 0.11 |
Margin Interest
If the account cash balance is 0 as US dollar, means that allows you to borrow cash to purchase stocks.(Clients needed to meet margin requirements)
Example:
Buying CGA stock on 11 July, the settlement amount required for delivery on 13 July is:
（1,221+1.62+1.65+0.99）+（111+0.99+1+0.09）=1,338.34。
Selling CGA stock on 12 July, the settlement amount required for delivery on 14 July is:
（1,188-1.62-1.65-1.07）+（108-0.99-1-0.11）=1,289.56。
| Date | Cash balance | Margin interest | Remarks |
|---|---|---|---|
| 11 July | - | - | No interest will be calculated before cash is settled |
| 12 July | - | - | |
| 13 July | -1,338.34 | 1,338.34*6.5%/365 | Interest will be calculated after settlement completes |
| 14 July | -1,338.34+1,289.56 | -48.78*6.5%/365 | Interest will be calculated after settlement completes |
| 15 July | -1,338.34+1,289.56 | -48.78*6.5%/365 | Interest will be calculated after settlement completes |
| 16 July | -1,338.34+1,289.56 | -48.78*6.5%/365 | Interest will be calculated after settlement completes |
Key takeaways:
- Fee calculation: Trading commissions are not aggregated.
- Margin financing interest calculation: No interest is charged on undelivered trading; interest begins to accrue from the delivery day.
- Commission-free rule: The coupon takes effect on the next day after being activated, and commissions for non-dark market trading in the corresponding market will be waived.
Disclosures
This article is for reference only and does not constitute any investment advice.
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