1. SEC Fee: Under Section 31 of the Securities Exchange Act of 1934, U.S. national securities exchanges are obligated to pay transaction fees to the SEC based on the volume of securities that are sold on their markets. Exchange rules require their broker-dealer members to pay a share of these fees who, in turn, pass the responsibility of paying the fees to their customers. Only applies to sell transactions and appears on the trade confirmation as: “FEES”. (More Information) As of February 27, 2023, the SEC Fee rate is $8.00 for every $1,000,000 in sale proceeds.
2. Trading Activity Fee (TAF): The TAF fee is only applicable when selling a security. As of January 1, 2024, the rate is$0. 000166 per share (up to $8.30 max per trade) for covered equity security. $0.00279 per contract when selling options. $0.00105 per bond (up to $1.05 max per trade) for Trace-Eligible Security (Other than Asset-Backed Security) or municipal security.
3. Foreign Ordinary Security Fee: SogoTrade charges an additional $5 fee per transaction for foreign ordinary securities that trade on the U.S. OTC Pink Sheet markets. Typically, these securities trade under 5 letter stock symbols ending in the letter ‘F’. These are also commonly referred to as ‘F’ shares and the fee as an ‘F share fee’. Although these stocks trade on the U.S. markets and are quoted in U.S. dollars, the actual settlement of a foreign ordinary security trade occurs in the local market in which the company is registered and in that country’s currency.
4. Options Regulatory Fee (ORF): The following options exchanges assess an Options Regulatory Fee (referred to as the “ORF fee”) on options transactions executed by its members that clear in the customer range at Options Clearing Corporation (“OCC”) regardless of the marketplace of execution. Applies to both buys and sells and appears on the trade confirmation as “OPTION FEES.” As of January 2nd, 2024, the aggregate rate is $0.02685 per contract.
5. Proprietary Index Option Fees: here are some index option products which are proprietary and listed on a single exchange. Exchanges charge extra fees to trade these products. To offset the exchange fees incurred for trading these products, SogoTrade also charges a per contract fee on these products. This charge will appear in your SogoTrade trade ticket at the time of trade.
6. ADR Fees: ADR agents that sponsor American Depositary Receipts (ADRs) are permitted to charge the ADR holder an annual custody fee. The fee is administered through the Depository Trust Company (DTC). If the ADR pays a dividend, the annual custody fee can be deducted from that or DTC will pass through a separate annual custody fee, the same way it does when the ADR does not pay a dividend. In that case, the annual fee will be posted to your account by our clearing firm. The per share fee and the date the fee posts annually will differ by ADR and is determined by the ADR agent. The ADR fee is anywhere between $0.01 and $0.10 per ADR share held.
7. Low-Priced Security Fee: Applicable to both purchases and sales of stock priced less than $1.00 / share. The fee rate is the greater of $0.0003 per share (5% of principal maximum) OR 0.25% of the principal amount of the trade.
Other relevant terms:Online order entry for OTC stocks priced less than $1 is limited to 1,000,000 shares or $500,000 (250,000 shares or $2.5 million for Listed stocks). Orders exceeding our online maximums are subject to the $25 broker-assisted commission rate, plus the low-priced security fee if applicable, when they are phoned into the Trade Desk.
Good Until Date (GTD) orders, partially executed over multiple trading days, are subject to separate commission charges for each trading day.
For Stocks priced under $1, $100 minimum investment (principal) required per opening transaction.
Penny Stocks: OTCBB and Pink Sheets may incur additional transaction fees based on DTC charges. These charges can be substantial, so they may be blocked from online trading. In this case, please contact the Trade Desk for more information.
DTC transfer in/out fee is $25 plus the pass through fee. Non-DTC items and/or physical trade fees are $300-$600.
As displayed on the trade confirmation, Tran Fee may include the SEC fee, TAF fee, and Option Regulatory Fee. Each fee has a $0.01 minimum and is rounded up to the nearest penny. The TAF fee is calculated at the execution level and summed up by the order. Rounding may sometimes cause higher than expected fees.
