Stock clearing fees cut to zero through the end of 2020
Clearing fees charged by the exchange and the depository have been eliminated through the end of the year, taking the cost of trades to zero for some investors.
The Korea Exchange (KRX) and the Korea Securities Depository (KSD) are waiving the charges in an effort to lower costs as the pandemic creates economic uncertainties. Around 165 billion won ($139 million) of commissions will be lost. The waiver is limited to trades in Kospi and Kosdaq stocks and some derivative products.
Products traded outside of local trading hours, such as the Euro Stoxx 50 futures, Kospi 200 futures and dollar futures, will not benefit from the fee cut.
The waiver includes the 0.0027 percent of the trading value taken by the KRX and the 0.0009 percent taken by the KSD in clearing fees.
Brokerages charge commissions for handling the transactions, but many mobile brokerages already charge nothing, while other brokerages are eliminating their commissions in line with the cuts by the exchange and the depository.
Eugene Investment said Monday the firm will be waiving its commissions.
A 0.25 percent transaction tax will remain for all sales on the exchange.
The plan by the exchange and the depository may not lead to more trading as commissions are already close to zero. Even without the discount, investors pay only around 3,650 won of commissions on 100 million won of trades.
BY KANG JAE-EUN [email@example.com]
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