Introduction to on-site funds On-site funds refer to funds listed and traded on the stock exchange, also known as ETF(ExchangeTradedFund). Different from OTC funds, OTC funds can be listed and traded on the stock exchange like stocks, and investors can buy and sell through securities accounts. The advantages of floor funds are flexible trading, good liquidity and relatively low cost.
On-site fund handling fees The transaction fees of on-site funds include buying fees and selling fees. Generally speaking, the buying fee and selling fee are the same. On-site fund transaction fees include brokerage commission and stock exchange transaction fees.
Brokerage commission refers to the fees that investors need to pay to brokers when they conduct on-site capital transactions. The charging standard of commission is determined by the brokerage firm itself, which is generally a few ten thousandths of the transaction amount. The commission fees of different brokers are different, and investors can choose the right brokers according to their own needs.
The transaction fee of the stock exchange refers to the fee that needs to be paid to the stock exchange when trading funds in the market. The transaction fee is generally a few ten thousandths of the transaction amount. According to the regulations of the stock exchange, the maximum transaction cost does not exceed 2‰ of the transaction amount.
There are several ways to reduce the on-site fund handling fee and on-site fund transaction fee:
1. Choose a brokerage firm with a low commission, which is the main part of the fund handling fee in the market. Choosing brokers with lower commissions can effectively reduce transaction costs.
2. Choose large-scale on-site funds for trading. The larger the transaction scale, the lower the transaction cost, which can effectively reduce the transaction cost.
3. Choose more popular on-site funds for trading. Hot floor funds have a large transaction volume and relatively low transaction costs, which can effectively reduce transaction costs.
On-site fund handling fee is an important cost of on-site fund transaction. Investors can reduce transaction costs by choosing brokers with lower commissions, large-scale on-site funds and popular on-site funds.