Welcome Guest ( Log In | Register )

Outline · [ Standard ] · Linear+

 Commission Question

views
     
TSconstant
post Apr 28 2010, 12:27 PM, updated 16y ago

Getting Started
**
Junior Member
171 posts

Joined: Sep 2008
I see many advertise for 0.05% and 0.1% for day trades. But what about the miscellaneous cost like stamp duty and clearing fees? Normally, how many % do we need to estimate for that?

e.g. if buy 0.1% commission plus 0.3% for stamp duty and clearing, then total for buying is 0.4%. That means buy and sell is 0.8% for TOTAL cost. Am I right? So, is this 0.3% estimate good enough?
TSconstant
post May 3 2010, 02:56 PM

Getting Started
**
Junior Member
171 posts

Joined: Sep 2008
QUOTE(eYuppie @ May 3 2010, 01:12 AM)
For Intra-Day transaction i.e. buy & sell on the same day, you may need to pay only a very small % commission, for example 0.1% or RM8 whichever is higher when you use MayBank2u to trade.

Due to the minimum commission charge of RM8, you have to buy a stock with total gross purchase cost of RM8,000. If the market price for the stock is RM2, then you need to buy at least 4 lots (4,000 shares) in order to benefit to the fullest of the 0.1% commission charge.
Total gross purchase cost: RM2 x 4,000 shares = RM8,000
Commission of 0.1%: RM8,000 x 0.1% = RM8
Clearing fees of 0.03%: RM8,000 x 0.03% = RM2.40
Stamp Duty of RM1 for every gross purchase cost of RM1,000 or fraction = RM8
So, the total charges: RM8 + RM2.40 + RM8 = RM18.40 i.e. 0.23% for one way transaction.

For you to breakeven,  you can just sell at RM2.01,

Total gross purchase cost: RM2.01 x 4,000 shares = RM8,040
Commission of 0.1%: RM8,040 x 0.1% = RM8.04
Clearing fees of 0.03%: RM8,040 x 0.03% = RM2.42
Stamp Duty of RM1 for every gross purchase cost of RM1,000 or fraction = RM9
The total charges for buy & sell on the same day (intra-day) = RM18.40 + RM19.46 = RM37.86.

Therefore, total profit = Net Sale Amount less Net  Purchase Amount = RM8,020.54 - RM8,018.40 = RM2.14.

So, you can see it is just around 0.5% of the buying price for the two way transactions (buy & sell) which is much much lower cost if you able to play the INTRA-DAY contra & provided that your total gross purchase cost is RM8,000 or higher to benefit maximum from the 0.1% commission charge.

If your total gross purchase cost is less than RM8,000, then the stock price have to increase more than 0.5% of the buying price in order to breakeven.

To be always accurate, it is advisable to do your calculation for every stock that you trade.
*
Hi eyuppie,

Thank you very much on time taken to do such an elaborate illustration. Very much appreciated.

So, the cheapest roundturn commission is 0.46% for DAYTRADES. what about for those longer than daytrades i.e. overnight trades?

Thanks


 

Change to:
| Lo-Fi Version
0.0164sec    1.52    6 queries    GZIP Disabled
Time is now: 24th December 2025 - 03:36 PM