Is there a handling fee for trading with ETF? How much is the handling fee?
ETF refers to exchange-traded funds, and its trading fees are different from other funds. The handling fee of ETF trading mainly includes two parts, one is the trading commission, and the other is the management fee. Here are two kinds of fees.
Trading commission
Trading ETF needs to pay trading commission, which is one of the costs of trading in securities companies. The specific amount of trading commission depends on the brokerage firm and the ETF of the transaction. Some brokers may offer low-rate or free ETF trading, which needs to be decided according to the policies of brokers and the trading frequency of traders. Usually, the transaction commission rate is between 0. 1%-0.5% for each transaction.
Management cost
Management fee is the annual fee charged by fund companies for managing ETFs. This includes the cost of purchasing and selling fund assets, as well as other management costs, such as legal and audit fees. Management fees are usually expressed in the form of "rate ratio", that is, the percentage of fund assets. The specific cost depends on the management cost of ETF and other factors. The general ETF management fee rate is between 0.05% and 0.7%.
The handling fee of ETF trading mainly includes trading commission and management fee. Trading commission is the brokerage fee that needs to be paid when buying and selling ETFs, which is usually between 0. 1%-0.5% for each transaction. Management fee is the fee charged by the fund company for managing ETF, usually expressed as a percentage of the fund assets, and the rate is between 0.05% and 0.7%. Traders need to consider these fees to ensure that they can maximize profits when trading ETFs.