Free five means exempting the exchange from the minimum fee limit of 5 yuan.
The handling fees for stocks are mainly commissions and stamp taxes paid to brokers, as well as handling fees, securities management fees, etc.
However, some brokerages not only waive all fees except commission and stamp duty, but also waive five fees. This greatly reduces the cost of shareholders, and also allows them to develop better and achieve a win-win situation.
For example, if you purchase an on-exchange fund of 5,000 yuan, you only need to pay a handling fee of (5000/10000)*1=0.5 yuan. If you purchase an on-exchange fund of 1,000 yuan, you only need to pay a handling fee of 0.1 yuan.
The on-site fund rate for stock accounts opened by other securities companies before was 2.5 yuan, and it was not exempted from 5 yuan. That is, this investor bought a fund of 10,000 yuan, and theoretically only needed to pay 2.5 yuan, but it was not exempted from 5 yuan, which caused this for the investor.
A handling fee of RMB 5 is required to purchase an exchange-traded fund worth RMB 10,000, and a handling fee of RMB 5 is required to purchase an exchange-traded fund worth RMB 5,000.
The on-exchange fund fee rate of 50% made this investor’s transaction costs higher, so this reader quickly opened a stock account where the on-exchange fund fee rate was 50% off to save money.
For ordinary investors, I recommend that you buy more index funds, and most index funds are exchange-traded funds (ETFs). Therefore, if you buy a lot of index funds, it is recommended that you open an exchange-traded fund with a fee rate of 10,000 yuan as follows.
A stock account with one free and five free accounts can help you save a lot of money in the long run.
In case the securities company that is free of charge is Huabao Securities Company.
If it means that the commission for securities is one ten thousandth, for example, if a single transaction is 50,000 yuan, then the commission is 5 yuan; if it is free, users need to pay a minimum commission of 5 yuan when conducting securities transactions.
For retail investors in stocks, if they can obtain a commission charging standard in the unlikely event, they can save themselves a commission fee.
How to choose a securities firm: 1. Try to choose a large securities firm to see if there is a local sales department. Some businesses also need to be handled locally.
2. Look at the service. Whether there is an account manager, you can receive timely notifications on new stock winnings and payment, and stock delisting. Any problems can be solved as soon as possible.
3. Check whether the software is easy to use. Many businesses need to be handled on the software, so the software must have complete functions. Some software K-line chart indicators and other indicators are not very comfortable to look at, and of course they are not very easy to use.
You can first download the brokerage software, prepare your ID card and bank card, and follow the account opening process prompted on the software to register and experience it.
4. Choose a large brokerage because the server of a large brokerage will be more stable and the possibility of software crashing is less.