Regulatory (SEC/TAF) fees

About

As a part of standard brokerage operations the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) impose fees for the *Selling of securities.

The Organizations

The mission of the SEC is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. The SEC strives to promote a market environment that is worthy of the public's trust.

FINRA is authorized by Congress to protect America’s investors by making sure the broker-dealer industry operates fairly and honestly. FINRA oversees more than 624,000 brokers across the country—and analyze billions of daily market events

SEC Fee

The Securities and Exchange Commission - beginning on February 25, 2021, the fee rates applicable to most securities transactions will be set at:

• $5.10 per million dollars or
• Per-dollar of securities sold is $0.0000051

TAF Fee

The trading activity fee (TAF) is one of the regulatory fees FINRA assesses to recover the costs of supervising and regulating firms. This includes costs associated with performing examinations, financial monitoring, and FINRA’s policy, rule-making, interpretive and enforcement activities.

• The minimum TAF fee a customer will be charged is $0.01 per sale
• For trades of less than 50,000 shares, firm pays $0.000119 per share
• For trades of 50,000 shares or greater, firm pays $5.95 per trade

Further Information may be found here:

https://www.sec.gov/news/press-release/2021-8

https://www.finra.org/rules-guidance/guidance/trading-activity-fee