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Dealing cost |
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Dealing costThe cost of trading in an asset or security which will vary according to the broker you use and according to the tax jurisdiction in which the trade is carried out.For UK stock market investors, the costs break down into:Broker commissionCommission is chargeable whether you buy or sell, and either takes the form of a flat fee (e.g. £12 per trade) or a commission on the value of the trade (e.g. 1.25% x £3,000 = £37.50). The actual figures will vary from broker to broker. Execution-only brokers are invariably cheaper than full-service brokers because they are not advising on what to buy or sell. They are just executing the trade.Stamp Duty0.5% tax, chargeable on purchases only (1% for Irish stocks)Similar MatchesInsider dealingInsider dealingIllegal share dealings by employees of a company where they have used confidential price-sensitive information for their own gain or the gain of their associates.The inside dealer does not have to work for the company for his dealing to be an offence. So a stockbroker, or merchant banker, who knows about an impending takeover deal who buys shares in the target company with the intention of making a profit, is guilty. If he gets a friend to buy the shares, he is still guilty. In theory, the net is cast quite wide. In practice, insider dealing prosecutions are rare, and successful ones rarer still because the allegations are so hard to prove.Note the difference between insider dealing (an offence) and directors dealings (not an offence). Canadian Dealing Network (CDN)Canadian Dealing Network (CDN)The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange in 1991. Forward dealingForward dealingThe buying or selling of underlying instruments such as commodities, securities and currencies etc for delivery at a specified future date and a fixed price. Trading desk (dealing desk)Trading desk (dealing desk)Personnel at an international bank who trade spot and forward foreign exchange. Dealing desk (Trading desk)Dealing desk (Trading desk)Personnel at an international bank who trade spot and forward foreign exchange. Further SuggestionsIncestuous share dealingAfter hours dealing or trading directors dealings |
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