The CAT fee is a small regulatory charge mandated by the Financial Industry Regulatory Authority (FINRA) in the United States. It funds the Consolidated Audit Trail system - a program that tracks all U.S. stock trades to protect investors and ensure market transparency. This fee has applied to all U.S. equity trades since April 1, 2025.
This is a regulatory fee, not a brokerage partner charge. It is passed on to you at cost and will appear in your trade confirmation documents.
How much is it?
Security Type | Fee per Share | Ratio Applied |
Exchange-listed stocks (e.g. NYSE, NASDAQ) | $0.000035 | 1:1 |
Over-the-Counter stocks (OTC) | $0.000035 | 1:0.01 |
Exchange-listed stocks are shares of companies traded on major U.S. stock exchanges like the NYSE or NASDAQ - for example, Apple or Amazon. OTC stocks are shares traded outside formal exchanges, typically smaller or less established companies.
All amounts are rounded up to the nearest whole share and nearest penny.
Examples:
1,000 exchange-listed shares: 1,000 × $0.000035 = $0.035 (about 3.5 cents)
1,000 OTC shares: 1,000 × 0.01 × $0.000035 = $0.00035 (less than 1 cent)
As you can see, this is an extremely small fee that has a negligible impact on your trades.