Costs of a standard equity transaction

The cost of a standard equity transaction is made up of:

• a stockbrokers's fee,
• taxes,
• a levy for the adminsitrative cost of the electronic settlement system,
• insider trading levy and
• other compulsory administrative charges.

Brokerage

Your broker could charge you a percentage of the value of your trade, depending on the size of the trade and the nature of the service required.

• All brokers charge a minimum per deal, even if your order is very small.
• If your investment is too small, the charges could dilute your returns considerably.  Your investment would need to deliver sizeable returns before expenses are recovered.