What is the SEC regulatory transaction fee?

The SEC Section 31 fee is a small mandatory government fee assessed on sell orders of equities and ETFs to cover government regulatory expenses (set annually, e.g., $27.80 per million dollars of principal).

Equity Trading•Per-Share & Flat Pricing

Stock Broker Commission Calculator

Compute stock brokerage trading fees, regulatory exchange fees, and total net transaction outlay.

Trade & Fee Parameters

Share Price ($)

Number of Shares

Broker Pricing Model

Flat Commission Per Order ($)

Regulatory / SEC Fee ($)

Trade Calculation Output

Total Broker Fee

$5.00

Gross Trade Value$15,000.00

Total Outlay (Cost)$15,005.00

Effective Fee %0.033%

Breakeven Per Share$150.05

Stock Brokerage Fee Models & Trade Execution Mathematics

Understanding brokerage commission schedules and execution fees is vital for active traders, retail investors, and financial portfolio managers. Even small per-share commission rates or transaction fees can accumulate significantly over high trading volumes, directly lowering net investment yields.

Trading Fee Formulas

Formula expressions for evaluating total trade cost and effective fee percentage:

Per-Share Execution Model:Total Commission = (Share Count × Rate Per Share) + Regulatory SEC Fees

Effective Breakeven Price:Breakeven Price Per Share = (Gross Trade Value + Total Execution Fees) / Share Count

How to Calculate Stock Brokerage Fees Step-by-Step

Calculate Gross Trade Value: Multiply share price by total share quantity (e.g., $150 × 500 shares = $75,000).
Determine Base Broker Fee: Calculate commission under your broker's model (e.g., $0.005/share = $2.50).
Add Regulatory Fees: Add Section 31 SEC fees assessed on sell transactions.
Find Effective Fee Percentage: Divide total fees by gross principal value and multiply by 100.

Worked Stock Trade Example:

Buying 1,000 shares of a stock priced at $50.00 ($50,000 principal) with a $0.005 per-share fee ($5.00) plus $1.39 SEC fee:
Total Outlay = $50,000 + $6.39 = $50,006.39.
Breakeven Price = $50.00639 per share.

Comparison of Equity Broker Pricing Schedules

Pricing Structure	Typical Rate	Advantage	Best For
Zero-Commission Retail Broker	$0 commission (PFOF)	No direct trade fees	Casual buy-and-hold retail investors
Direct Market Access (Per Share)	$0.003 – $0.005 / share	Fast execution & price improvement	Day traders & algorithmic order flow
Full-Service Advisor (% AUM)	0.50% – 1.50% annually	Holistic wealth planning & management	High-net-worth individual portfolios

Frequently Asked Questions (FAQ)

How are stock broker trading commissions calculated?

Stock broker commissions are calculated using one of three pricing models: Flat Fee (fixed dollar amount per order), Per-Share Fee (e.g., $0.005 per share), or Percentage of Value (e.g., 0.50% of trade principal calculated with our commission percentage calculator), plus mandatory SEC regulatory transaction fees. Evaluate gross trade values with our gross commission tool.

How does broker commission affect breakeven share price?

Commission costs increase your total purchase outlay, raising your effective per-share breakeven price: Breakeven Price = (Gross Principal + Entry Commission + Exit Commission) / Total Shares Purchased.