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How much are Fees and Brokers’ Commissions in the PSE?




In the past, we’ve written several tutorial articles related to Stocks and Stock Trading for the benefit of those interested to venture into stock investing.

You probably have learned by now:

You have perhaps even already chosen a stock broker. But before you make that first trade, make sure you are familiar with fees and charges related to stock transactions so you won’t end up with a loss even if you sold your stock at a price higher than your acquisition cost.

Here are the stock transaction fees in the Philippines. A lot of things have changed in the past couple of years so take note of the new fee structure below. Source of the following is the Philippine Stock Exchange website and websites of various online stockbrokers in the country.

Table of Fees and Charges when Buying or Selling Stocks

Fees and ChargesRate or AmountCharged to
Broker's CommissionMax of 0.25% of gross trade amount or P20, whichever is higherBuyers and Sellers of stocks
VAT on Broker's Commission12% of Broker's CommissionBuyers and Sellers of stocks
SCCP or Clearing Fee0.01% of gross trade amountBuyers and Sellers of stocks
PSE Transaction Fee0.005% of gross trade amountBuyers and Sellers of stocks
Sales Tax0.5% of gross trade amountSellers only

Explanation of Stock Fees, Taxes and Charges in the PSE

  1. Brokerage commission fee

You use a broker, regardless if a live broker or online broker, to help facilitate the buying and selling of stocks. They make money from the commissions charged on your every trade.

Remember, the more trades you do with them — even if the transaction is to sell at a loss — they get to earn commissions from the trade. So be wary if they keep on telling you to trade, even if you’re not comfortable with the transaction.

Broker’s commission vary per broker, but the maximum rate they can charge is 1.5% of the transaction amount, or a fixed minimum fee of P20, whichever is higher. The transaction is also charged an additional 12% VAT.

2. SCCP or Clearing Fee

When you buy a stock, you pay money and, in return, you get ownership of that stock.

There is an agency that facilitates proper stock clearing and settlement. In simple terms, they ensure that your payment as buyer goes to the seller of the stock and the stock is properly transferred to your name.

This agency is the “Securities Clearing Corporation of the Philippines” or the SCCP, a wholly-owned subsidiary of the Philippine Stock Exchange Inc. Their role is to synchronize the transfer of funds and securities to the beneficial owner.

The stock seller, through their broker, must deliver the securities to the SCCP and, once the securities are properly transferred, the SCCP transfers funds to them as payment for the sale. For the work that they do, they charge 0.01% of the transaction amount.

3. PSE Transaction Fee

The Philippine Stock Exchange charges 0.005% of the gross trade amount for every stock transaction.

4. Stock Transaction or Sales Tax

The government, of course, earns money too from stock trading transactions by charging 0.5% whenever a stock selling transaction is made. Take note this tax is charged even if the transaction resulted in a loss.

To see an example of how these fees affect your trades, head over to our post on Sample Computation of Fees when Buying and Selling PSE stocks.

Must read these other awesome educational posts!



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About this post: brokerage fee rate philippines, percentage charges on buying and selling shares in philippines, philippine 0 25% commission rate, philippines minimum commission brokerage, brokers commission percent pse

6 thoughts on “How much are Fees and Brokers’ Commissions in the PSE?”

  1. Finance Apprentice says:

    Would you know which brokers charge the least? Or should I be wary of them, if they charge only a very small amount?

    1. James | PinoyMoneyTalk.com says:

      Hi Finance Apprentice, our article https://www.pinoymoneytalk.com/comparison-online-stock-brokers-philippines/ has basic information about each online stock broker in the Philippines. Based on this comparison, it looks like almost all local online brokers charge the same 0.25% commission.

    2. Carlos PFA says:

      Ah! Thanks! :D

  2. Sophia says:

    hello there :)

    I just like to ask when does the 0.25% brokers commission being charged? is it whenever the client withdraws? or whenever the stocks of a certain company, which the client has shares, earns dividends? What if the client has buys 5 companies, how much or what is the computation for the broker’s commission? Hoping for your reply. Thank you!

    Sophia

    1. PinoyMoneyTalk says:

      Hi Sophia, the broker’s commission is charged every time you do a transaction with the broker. That’s exactly how brokers make money. You can see how the fees are charged in this computation of a sample PSE stock transaction: https://www.pinoymoneytalk.com/fees-computation-buying-selling-stocks/

      Hope that helps! :)

  3. Cesar says:

    How would you input these in Amibroker for backtesting?

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