1. What is Stock Broker Commission?

Stock broker commission is the fee charged by brokers in the Philippines for executing buy and sell orders in the stock market. It's typically calculated as a percentage of the trade value.

2. How Does the Calculator Work?

The calculator uses the commission formula:

Where:

• \( Trade\ Value \) — Total value of the trade in Philippine Pesos (PHP)
• \( Rate \) — Broker's commission rate as a decimal (e.g., 0.0025 for 0.25%)

Explanation: The commission is simply the product of the trade value and the broker's commission rate.

3. Importance of Commission Calculation

Details: Calculating commission accurately is crucial for determining the true cost of trading and for proper profit/loss calculations in stock market transactions.

4. Using the Calculator

Tips: Enter trade value in PHP and commission rate as a decimal (e.g., 0.25% = 0.0025). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are typical commission rates in the Philippines?
A: Rates typically range from 0.15% to 0.50% of trade value, depending on the broker and account type.

Q2: Are there minimum commission charges?
A: Yes, most brokers have minimum commissions (e.g., PHP 20 per trade) regardless of trade value.

Q3: Are there other fees besides commission?
A: Yes, there may be additional fees like PSE fee (0.005%), SCCP fee (0.01%), and VAT (12% on commission).

Q4: How can I reduce commission costs?
A: Consider brokers with lower rates, negotiate for better rates with higher trading volumes, or bundle trades.

Q5: Is commission the same for buying and selling?
A: Typically yes, but some brokers might have different rates for buy and sell transactions.