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Third-Party Fees Explanation
Third-party fees are not charged by Sahm but are imposed by the relevant institutions. Below is a detailed breakdown:
Type | Security Type | Fee | Charged By |
---|---|---|---|
Settlement Fee | U.S. Stock | $0.003/share Min. $0.01/trade | U.S. Clearing House |
Settlement Fee | U.S. Option | $0.18/ Contract | U.S. Clearing House |
SEC Fee (Charged for sell orders only) | U.S. Stock | $0 | SEC |
U.S. Option | $0 | SEC | |
CAT Regulatory Fees (Buys & Sells) | U.S. Stock | $0.000048/share Min. $0.01/trade | SEC |
U.S. Option | $0.0048/Contract Min. $0.01/Trade | SEC | |
Trading Activity Fee (Charged for sell orders only) | U.S. Stock | $0.000166/share Min. $0.01/trade Max. $8.30/trade | FINRA |
U.S. Option | $0.00279/ Contract, Min. 0.01/ Trade | FINRA | |
Options Regulatory Fee (ORF) | U.S. Option | $0.02645/ Contract | U.S. Exchanges |
Options Clearing Fee | U.S. Option | $0.02/ Contract, Max. 55/ Trade | Options Clearing Corporation (OCC) |
CMA Fee | SA Stock | 0.030%* Transaction Amount | CMA |
Exchange Fee | SA Stock | 0.009%* Transaction Amount | Tadawul |
Settlement Fee | SA Stock | 0.005%* Transaction Amount | Edaa |
Safekeeping Fee | SA Stock | 0.001%* Transaction Amount | Edaa |
Clearing Fee | SA Stock | 0.005%*Transaction Amount | Muqassa |
Institution Descriptions
Institution | Instruction |
---|---|
U.S. Clearing House | The Clearing House (TCH), the oldest banking payments and clearing system operator in the U.S. It manages large-scale payments (e.g., CHIPS), securities clearing, and risk management services. |
SEC | Securities and Exchange Commission, the federal regulatory agency overseeing securities markets, enforcing laws (e.g., Securities Act, Exchange Act), and protecting investors. |
FINRA | Financial Industry Regulatory Authority,a non-governmental self-regulatory organization (SRO) that supervises broker-dealers to ensure market fairness and investor protection. |
U.S. Exchanges | Major stock exchanges like NYSE and NASDAQ facilitate listing and trading of financial instruments. |
Options Clearing Corporation (OCC) | The world’s largest equity derivatives clearinghouse, acting as a central counterparty (CCP) for options trading. |
CMA | The Capital Market Authority of Saudi Arabia regulates capital markets and safeguards investors. |
Tadawul | The Saudi Exchange, the Middle East’s largest stock market, listing equities, bonds, and derivatives. |
Edaa | The Securities Depository Center manages securities registration, custody, and settlement. |
Muqassa | The Saudi Clearing Center, serving as the CCP for Tadawul trades, ensuring clearing and risk mitigation. |