Additional charges when buying and selling stocks thru citiseconline

source: CITISECONLINE FAQ


The following lists the corresponding charges for buying and selling transactions:


1. Commission = 1/4 of 1% or 0.25% of the gross trade amount or a minimum charge of P20.00 pesos per transaction, whichever is higher. Should you require broker-assisted trades, a commission charge of 1/2 of 1% or 0.5% of the transaction amount or a minimum of P20.00 pesos per trade will be charged, whichever is higher.

2. VAT = 12 % of commission (Effective Feb 1, 2006)

3. PSE Trans Fee = Philippine Stock Exchange Transaction Fee = 0.005% of gross trade amount

4. SCCP = Securities Clearing Corporation of the Philippines Fee = 0.01% of gross trade amount

5. Sales Tax = No. of shares x price x .005 (only on the SELLING side)

Each computed charge listed above are rounded to hundreths (2 decimal places) using Symmetric Arithmetic Rounding* for the calculation of the total fees.


Example 1:

Buying
Commission + VAT + PSE + SCCP = total fees.
Total fees for buying 20,000 shares of ALI at Php5.00/share can be computed as follows:.
Total fees = Php250 + Php30 + Php5.00 + Php10.00 = Php295.00

Selling
Commission + VAT + PSE + SCCP + Sales Tax = total fees
Total fees for selling 20,000 shares of ALI at Php5.20/share can be computed as follows:
Total fees = Php260 + Php31.20 + Php5.20 + Php10.40 + Php520 = Php826.80


Example 2:

Buying
Commission + VAT + PSE + SCCP = total fees.
For example, total fees for buying 10,000 shares of Meralco-A at Php70.00/share can be computed as follows:.
Total fees = Php1,750 + Php 210 + Php35 + Php70 = Php2,065

Selling
Commission + VAT + PSE + SCCP + Sales Tax = total fees
Total fees for selling 10,000 shares of Meralco-A at Php75.00/share can be computed as follows:.
Total fees = Php1,875 + Php225 + Php37.50 + Php75.00 + Php3,750 = Php5,962


* This method is commonly used in accounting. It is the same method used by Microsoft Excel and SQL. The rounding rules are as follows:

Decide which is the last digit to keep.
Increase it by 1 if the next digit is 5 or more (this is called rounding up).
Leave it the same if the next digit is 4 or less (this is called rounding down)


Examples:

3.044 rounded to hundredths is 3.04 (because the next digit, 4, is less than 5).
3.046 rounded to hundredths is 3.05 (because the next digit, 6, is 5 or more).
3.045 rounded to hundredths is 3.05 (because the next digit, 5, is 5 or more).

Using example number 1 (buying):

Gross Amount = 47,000 * 2.55 = 119,850.00
Commission = Gross Amount * 0.0025 = 119,850 * 0.0025 = 299.625 = 299.63 (rounded to hundredths because the next digit, 5 is 5 or more)
VAT = Gross Amount * 0.12 = 119,850 * 0.12 = 35.955 = 35.96 (rounded to hundredths because the next digit, 5 is 5 or more)
PSE = Gross Amount * 0.00005 = 119,850 * 0.00005 = 5.993 = 5.99 (rounded to hundredths because the next digit, 3 is less than 5)
SCCP = Gross Amount * 0.0001 = 119,850 * 0.0001 = 11.985 = 11.99 (rounded to hundredths because the next digit, 5 is 5 or more).
Total fees = 299.63 + 35.96 + 5.99 + 11.99 = 353.57