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Exploretrade LLC Fee Schedule
Exploretrade believes that technology empowers traders to be more profitable helping to grow our user’s economic freedom. Technology also enables us to provide transparent and straightforward prices with 0 commission trades and no deposit minimums.
We make money the same way every other broker makes money, but with one less revenue line item: commissions. In order to keep the lights on, we optimize the back-end revenue streams that every other broker (traditional or non) utilize to generate revenue. Simply put, these are stock loans, interest on free credit balances, margin interest and payment for order flow. More information on this can be found in our This Link Will Open A PDF DocumentSEC Rule 606 disclosure.
Tiered Margin Interest Rates
Annual Margin Rate
Exploretrade provides up to 4x day-trade buying power and 2x overnight buying power with a margin account. You must have at least $2,000 to qualify. Interest on margin trading is calculated on a daily basis and paid on a monthly basis. The margin rate is variable and is determined by the size of the margin loan. The margin rate is set at our discretion and is subject to change without notice.
| Debit Balance | Annual Margin Rate |
|---|---|
| $0 - $9,999 | 5% |
| $10,000 - $49,999 | 4.5% |
| $50,000 - $99,999 | 4% |
| $100,000+ | 3.5% |
Short Selling Fees
For a short position, you need to borrow shares of a company before you sell them. The cost associated with a short sale is the fee for borrowing the stocks of said company. The stock loan rate changes on a daily basis based on market condition. Just as interest on margin trading, it is calculated on a daily basis and charged daily. The formula is:
Daily Margin Interest (Short Position) = The Daily Market Value of the Borrowed Stocks when Market Closes* Stock Loan Rate for That Stock/360.
Fees Charged By Regulatory Agencies & Exchanges
Exploretrade does not charge commissions for trading stocks, ETFs and options listed on U.S. exchanges. Exploretrade does charge a $0.55 per contract fee applies for certain options trades. Fees are also applied by certain regulatory agencies, some of which are passed from the broker dealer to clients as a pass through transaction. Exploretrade does not profit from these fees.
Charged By
Fees
Types
Rule
Securities and Exchange Commission (SEC)
$0.000008*Total $ Trade Amount (Min $0.01)
Regulatory Transaction Fee
Sells Only
Securities and Exchange Commission (SEC)
$0.000008*Total $ Trade Amount (Min $0.01)
Regulatory Transaction Fee
Sells Only
Securities and Exchange Commission (SEC)
$0.000008*Total $ Trade Amount (Min $0.01)
Regulatory Transaction Fee
Sells Only
Securities and Exchange Commission (SEC)
$0.000008*Total $ Trade Amount (Min $0.01)
Regulatory Transaction Fee
Sells Only
Securities and Exchange Commission (SEC)
$0.000008*Total $ Trade Amount (Min $0.01)
Regulatory Transaction Fee
Sells Only
- Regulatory Transaction Fee: The Securities and Exchange Commission (SEC) assesses transaction fees on national securities exchanges and self-regulatory organizations at a rate consistent with Section 31 of the Securities Exchange Act of 1934. National securities exchanges and self-regulatory organizations offset the transaction fees by charging their member broker-dealers such as Exploretrade, and we, in turn, offset this fee by charging you a Regulatory Transaction Fee for covered sell transactions. The fee is ultimately intended to cover the costs incurred by the government, including the SEC, for supervising and regulating the securities markets and securities professionals. The SEC recalculates the amount of this fee periodically – at least annually but sometimes more often. Learn more> Effective February 25, 2021, the SEC Fee rate will be reduced from $22.10 to $5.10 for every $1,000,000 in sale proceeds.
- Finra Trading Activity Fee: The Trading Activity Fee will be assessed at a rate consistent with Section 1 of Schedule A of FINRA’s By-Laws for trading activity. Current rates are: $0.000145 per share for each sale of a covered equity security, with a maximum charge of $7.27 per trade; $0.00224 per contract for each sale of an option contract.Learn more>
- Options Exchange Fee: The Options Regulatory Fee is a fee assessed by exchanges on their members. It is collected by The Options Clearing Corp (OCC) on behalf of the U.S. options Exchanges. Learn more>
- OCC Clearing Fee: The Clearing Fee is charged by The Options Clearing Corp (OCC) who provides central counterparty (CCP) clearing and settlement services to 16 exchanges.Learn more>
- There is no Regulatory Transaction Fee and Trading Activity Fee for index options.
Potential Fees for trading OTC securities
| Item | Fee |
|---|---|
| Low-Priced Securities (for transactions in excess of 100,000 shares priced under $1.00/ share) | $0.0002 per share (maximum 5% charge of principal value) |
| F-stocks (foreign settlement) |
Buys: $5.00 per trade Sells: $0.05 per trade |
| ORF Fee | $0.02905 * No. of Contracts |
| Illiquidity Charge |
Additional fees and interest may be charged for trading activity that triggers an NSCC illiquidity charge, as determined by the NSCC. Minimum Overnight Interest Rate: 15% Fee: $250 |
Index Option Fees
Exploretrade passes through proprietary index option fees to clients on a per contract basis. Certain exchanges charge a proprietary index option fee on select index options that only trade on their exchange. Please see the rates below.