Sec Fee Rate Calculator

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SEC Fee Rate Calculator

The total dollar amount of the sell transaction.
Effective rate set by the SEC (currently $8.00 per million).
Estimated SEC Fee
$0.00
function calculateSECFee() { var saleValue = parseFloat(document.getElementById('saleValue').value); var secRate = parseFloat(document.getElementById('secRate').value); var resultDiv = document.getElementById('secResult'); var feeDisplay = document.getElementById('feeValue'); var noteDisplay = document.getElementById('calculationNote'); if (isNaN(saleValue) || isNaN(secRate) || saleValue <= 0) { alert("Please enter valid positive numbers for the sale value and rate."); return; } // SEC Fee Formula: (Total Sale Value / 1,000,000) * Current Rate // Note: The SEC usually rounds the fee up to the nearest penny var calculatedFee = (saleValue / 1000000) * secRate; // Rounding to 2 decimal places (standard for currency) var finalFee = Math.round(calculatedFee * 100) / 100; // Ensure minimum fee of $0.01 if the sale value is positive if (finalFee 0) { finalFee = 0.01; } feeDisplay.innerText = '$' + finalFee.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); noteDisplay.innerText = "Based on a rate of $" + secRate + " per $1,000,000 in sales."; resultDiv.style.display = 'block'; }

Understanding the SEC Section 31 Fee Rate

If you have ever sold a stock or an ETF, you might have noticed a small deduction from your proceeds labeled as an "SEC Fee." While usually negligible on small trades, these fees are a mandatory part of the American financial ecosystem. Our SEC Fee Rate Calculator helps you estimate this cost before you execute a trade.

What is an SEC Fee?

The SEC (Securities and Exchange Commission) Section 31 fee is a transaction fee applied to the sale of most exchange-listed equities. Under Section 31 of the Securities Exchange Act of 1934, self-regulatory organizations (SROs) like the NYSE and NASDAQ must pay fees to the SEC based on the aggregate dollar amount of securities sold on their platforms.

Broker-dealers typically pass these costs directly to the investor. It is important to note that SEC fees only apply to sell orders; you do not pay this fee when you purchase a security.

Current SEC Fee Rate for 2024

The SEC fee rate is not static. It is adjusted periodically (usually annually or semi-annually) to ensure the commission recovers the costs of its operations. As of the latest adjustment effective May 2024, the rate is set at $8.00 per $1,000,000 of sales.

In previous years, this rate has fluctuated significantly. For example, it was previously $22.90 per million. Always verify the current rate if you are performing high-volume professional trading.

How to Calculate SEC Fees Manually

The math behind the SEC fee is straightforward. You divide your total sale amount by one million and then multiply by the current fee rate.

Formula: (Total Principal Sale Value / 1,000,000) × Current SEC Rate

Realistic SEC Fee Examples

  • Example 1: Small Retail Trade
    You sell $10,000 worth of Apple (AAPL) stock.
    Calculation: ($10,000 / 1,000,000) × $8.00 = $0.08.
    Your fee is 8 cents.
  • Example 2: Large Portfolio Liquidation
    You sell $2,500,000 worth of various ETFs.
    Calculation: ($2,500,000 / 1,000,000) × $8.00 = $20.00.
    Your fee is $20.00.

Frequently Asked Questions

Is the SEC fee tax-deductible?

Generally, SEC fees are considered a cost of the transaction. They effectively reduce the total proceeds of your sale, which in turn reduces your capital gain (or increases your capital loss) for tax reporting purposes on Form 1099-B.

Does the fee apply to Options?

Yes, Section 31 fees apply to options transactions as well, though the calculation may involve the number of contracts and the premium. This calculator is specifically designed for the cash value of equity sales.

Why did my broker charge more?

Brokers are required to pay the SEC fee, but they may also charge a "Trading Activity Fee" (TAF) from FINRA or other small regulatory fees. This calculator focuses specifically on the SEC Section 31 component.

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