Penny Stock Fees

Posted by Shiboy on December 26, 2009 (07:49PM)

I bought 3700 shares @ $0.02.  My understanding is there should have been a $0.01/share fee ($37.00) added to the $4.95 comissions.  How come I'm not seeing this fee deducted from my balances in any of my account information?  I'm not seeing where the math adds up.

Posted by El Dorado on December 27, 2009 (11:47AM)

For stocks under one dollar, .01 per share or 5% of the trade, whichever is less, in addition to the normal trading fee.

http://community.tradeking.com/forum/categories/general/topics/4124-penny-stock-trading/forum_posts 

Posted by BeretDude on December 27, 2009 (02:42PM)

If you click up top on the Welcome screen, you can find 'Commissions and Fees'.. in the smaller print under Compare our rates, you will see the .01 per share trade.   If you go to Accounts and click on Activity, you should see that you paid $115.00 for your 3700 shares.  That is  $74.00 for the stock... $37.00 for the .01 cent per share..and $4.95 for the normal commission rate.  Now, take into consideration that when you sell that stock, assuming it is still less than $1.00, that again you will pay the $37.00  + $4.95 in commissions.   Add em up and you would be paying $83.90 in commissions alone, so you have to make sure that when you do sell, it is going to cover all of that, plus hopefully a decent profit on top of it.


Posted by Shiboy on December 27, 2009 (08:49PM)

Date Activity Quantity Symbol Description Price Comm. Fees 1 Amount 12/17/09 Bought 3,700 GCKO
Geckosystems International Corp
GECKOSYSTEMS
INTERNATIONAL CORP $0.0195 $4.95 -$77.10

Posted by Shiboy on December 27, 2009 (08:55PM)

Tried to copy the line from the Activity page.  It didn't post as I'd hoped, but I still can't find where the $37 was added in fees.

Posted by TK-Stefan on December 27, 2009 (09:11PM)

Shiboy,

While you are on the Accounts > Activity page you will find the commission that was charged on the trade. The amount that is listed under the commission tab would be the amount that was charged for this particular trade. If you would like to contact us tomorrow through live chat or over the phone we would be able to verify the account and discuss with you the commission charged on your trade.

Below I have also provided a quote and a link to a forum response made by our VP of Brokerage Operations and Customer Service. The important information in the post below is regarding the 5% of the principal amount of the trade.

http://community.tradeking.com/forum/topics/4124/forum_posts

"For stocks under $1.00 there is an extra penny per share charge. However, that charge can not exceed 5% of the principal amount of the trade. For example if you buy 1 million shares and the total amount of the order is $1000.00, the most we would charge on that trade would be 5% of $1000.00, not a penny * a million."

Best regards,

Stefan McVeigh
TradeKing Customer Support

Posted by Shiboy on December 27, 2009 (09:34PM)

Ahh...so in my case it's 5%. I didn't know about that.  I thought it was a penny regardless.  I think that explains it.   Thanks for your help!

Posted by BeretDude on December 28, 2009 (04:21AM)

No, actually I don't think the 5% charge was applied in your case,  Shiboy.   You should have been charged the .01 per share price.

Now see, that 5% thing is another one of those things that you don't find out about until someone from TK tells you about it.   I guarantee you that if you look anywhere within the  Commissions and Fees, you won't find any reference to the 5% max fee.   I wonder why that is?

Posted by Shiboy on December 28, 2009 (05:37PM)

Yeah....I looked in the "Commisions and Fees" and couldn't see anything that says 5%.  Pretty sure I didn't get charged .01 per share.  I'd see the $37 missing from my ballances.  Won't complain though....I'd rather pay the 5% in this case which comes to about 3.85.  Had I known about the 5% max, I'd have bought more shares. 

Posted by Igess on December 30, 2009 (03:58AM)

"Now see, that 5% thing is another one of those things that you don't find out about until someone from TK tells you about it."

I've fallen into that bucket too.  Buying a penny stock that's got a y or f  at the end of  the four letter symbol.  Apparently  some of them go through a foreign broker or foreign exchange, so there's a $75 fee per order.  TK gets charged for this, and of course, it would be passed on to the  customer  (me).     I got no problem with that. 

Other brokers I'm familiar with have an alert that flashes when you are about to place such an order.  Something like "Attn. you may be charged an additional fee for placing this order".    What I don't like is that TK apparently doesn't do this, and one day I am reading my transactions and see the $75 charge show up.   So now when I place small, penny stock orders for say, Chinese stocks, I don't know what to expect - if the fee will be there or not -- and I  either have to place big enough orders to make the possible $150 expense (the buy and sell) worthwhile, or I take my business elsewhere.   This is not good.

Posted by Shiboy on February 17, 2010 (01:23AM)

So...I'm still not getting it to add up.  In quoting 1500 shares @ $0.08, I'm seeing $19.95 in commissions.  That's equal to $4.95 trade fee + 0.01 per share pennystock fee(which amts to $15) not 5% (or $6) as it should be.

According to the 5% rule mentioned above....the penny per stock fee should only apply to stocks priced between 0.20-0.99 because 5% of anything less than 0.20 would be less than a penny.

Do I need to go back to school and learn some new math?

What am I missing?

Posted by TK-Stefan on February 17, 2010 (08:21AM)

Shiboy,

The estimated commission on the order status screen will show $4.95 plus an additional penny per share. If the trade executes and the 5% is lower than our standard commission rate you would be charged the 5%. Please keep in mind that the base commission would be $4.95. If the 5% was less than $4.95 you will be charged $4.95.

Best regards,

Stefan McVeigh
TradeKing Customer Support

Posted by Shiboy on February 17, 2010 (12:49PM)

I see....I was wondering if that was the case.  Thanks for the clarification, Stefan.

The only problem with this is if I don't have enough money in my account to cover the estimated commissions of a penny per share, on a stock less than 0.20, I am forced to buy less shares, even though actual commissions would be less.

i.e I have $149.00 in my account. I want to buy 1700 shares @ .08 for a total of $136.00 without commissions.  My estimated comissions are $4.95 + 17.00. for a grand  total of  $157.95.  Thus, I get a notice stating I have insufficient funds for this purchase even though though the actual price should be $147.75 or [$136=(136x0.05)+4.95]

Owl001_thumb Brokerage Account

Posted by Owl on February 18, 2010 (10:16AM)

Shiboy,
Not really my business, but aren't you worried that commissions are taking too large a percentage of your potential profits, when you actively trade such small amounts? And when you trade things that have those 5% (or whatever) fees?

Posted by Shiboy on February 18, 2010 (01:21PM)

Owl said: Shiboy,
Not really my business, but aren't you worried that commissions are taking too large a percentage of your potential profits, when you actively trade such small amounts? And when you trade things that have those 5% (or whatever) fees?

 I guess that's why I'm trying to figure out exactly what those amounts are to determine if it is worth my while.  Depends on how much I think the stock is going to pop.  I had to pay the extra fees with SIRI, and now that it's over a buck, I don't mind that extra fee so much.

Posted by The Otter Way on February 18, 2010 (01:43PM)

Try holding penny stocks in a SEC fined account... 24.95 for the trade then add the penny... It sucks...

This email is to inform you that your account XXXX-xxxx has been placed on a 90 day trading restriction due to a (trade violation-freeriding:bought and sold XXXX using unsettled sell proceeds; followed with subsequent buys) in accordance with FINRA regulations

Posted by Shiboy on February 18, 2010 (02:45PM)

no bueno!  sorry to hear that.

Posted by El Dorado on February 18, 2010 (11:20PM)

The Otter Way said: Try holding penny stocks in a SEC fined account... 24.95 for the trade then add the penny... It sucks...

This email is to inform you that your account XXXX-xxxx has been placed on a 90 day trading restriction due to a (trade violation-freeriding:bought and sold XXXX using unsettled sell proceeds; followed with subsequent buys) in accordance with FINRA regulations

This why you been so moody lately? You got SP and Incubus sitting in the corner eating beer and drinking pretzels!

You must Log In to post to this forum.

Not a member? Register Now to …

  • See what other traders are doing
  • Make your own trades public
  • Share your thoughts on a trade
  • Join or start a group
  • Connect with like-minded traders