To ensure we can continue providing a seamless trading experience and remain commission-free, we will be introducing a fee for trades involving low-priced securities (those valued under $1). This change will take effect in January 2025.
Why are we introducing this fee?
Low-priced securities often result in significant costs for brokers. By introducing this fee, we can continue our commitment to commission-free investing for stocks priced above $1.
What does this mean for you?
Starting January 2025, all buy and sell orders for stocks with an execution price below $1 will incur a fee of $0.005 per share, with a maximum fee limit of 2% of the trade value. This means that, while the cost remains $0.005 per share, you’ll never be charged more than 2% of the order value, making the fee even lower for ultra-low-priced securities. You can refer to our pricing page for an update on the fees.
How are the fees calculated?
Let's assume the current fees are $0.005, we will provide a few examples:
Example 1:
If you create a buy or sell order for 1,000 shares with an average filled price of $0.90 (below $1), the fee is:
1,000 X 0.005 = $5
This fee applies since $5 is less than 2% of the transaction value ($900).
Example 2 (with cap 2%)
If you buy or sell an order for 3,000 shares with an average filled price of $0.20 the calculated fee is:
3,000 X 0.005 = $15
However, the applied fee will be $12 due to the 2% cap.
You will not be charged any commission if you create a buy or sell order and the average filled price displayed is above $1.
You will not be charged any commission for DRIP (auto Dividend Reinvestment Plan) if Activated, for reinvesting shares below $1.