In times like these where the economies are down, prices of stocks are also down. This makes it an ideal time to invest if you have extra money. You can buy shares of our favorite companies. But first, you need to create online account with a broker. I suggest you open account with COL FINANCIAL. Click the link so you can see opening account guide I posted. You can do online application during this current lockdown.
Buying and selling stocks involves fees and taxes. That is where the broker and the government will earn their share of the transaction. For the purpose of this post, I will use the fees used by COL Financial.
Take a look at this BUYING transaction report from their site. I tried to buy 100 stocks of JFC at PHP 135 price for a total of PHP 13,500. But on top of that, there are fees, charges and taxes we need to pay as enumerated below for a total of PHP 39.83. That is roughly around 0.003% of the whole transaction. It will be added on your gross buying amount.
Now, take a look at this SELLING transaction report. Same with buying, it involves fees, charges and taxes as well. I tried to sell 100 stocks of JFC at PHP 136.7 for a total of PHP 13,760. Total charges is around PHP 122.35 or 0.008% of the total transaction. It will be deducted on your gross selling amount.
There is no issue on buying stocks. The caution is on selling stocks. You don’t want to sell stocks at a lost. Given this scenario in COL, your breakeven point is at 1.1% in order to book a profit. So if you want to know if you profit from the sell transaction, make sure your gain is more than the break even point.
Just comment below if you have questions.