What is FINRA and how is calculated?


What is FINRA and how is calculated?

Last week I wanted to sell a stock and I saw a FINRA tax, it’s the first time when I saw this tax. I want to add that not to all stock portofolio it’s applied, just to some stocks.

I have seen examples of transaction fees and they do not know what they mean or how they are calculated.

Can you explain to me how these fees and commissions are calculated to understand these situations and why they are not applied to all actions?


just use the search function here

I found the topic before I posted, but unfortunately it didn’t make me understand how it works in my case.
I give you two examples: I have 70 shares in company x estimated at 181.3 and at company y I have 327 shares estimated at 360. If I sell the shares of the first company, FINRA is 0.01, and for the second FINRA is 0 according to Trading212 preview.
Why is that?
327 x 0.000119 = 0.0389 and 0.0389 <> 0 , right or am I wrong in my calculation?

FINRA and Sec tax/fee is only paid when selling US listed stocks, thus it will always and only show when selling NYSE/NAS listed companies.

Not for London /xetra and other EU listings.

Both are US listed stock, they are Aey and Ogen, Nasdaq respectively NYSE.
For Aey I pay that FINRA fee, but for Ogen no. Why is that?

did you create a market order? they only show the estimated fees when you make a limit order

What din you mean market order?
I did not use a limit order or anything, just normal buy/sell stocks.
I just press sell and they show the estimated fees, but I did not finalised the order, just to view that fees, if there are any.

that’s the difference as demonstrated below

market sell, price ~0.61:
limit sell, price 0.65:

Look, please, both are market sell:

@Bogdan_Denis_Sava For orders that are routed OTC (over-the-counter), no finra/transaction fee is due.


I read point 11 Fractional Investing, but I did not understand exactly what OTC means.
Do I understand that the FINRA tax does not apply if you place an order that contains fractional shares and it applies that you place an order with an exact number of shares?

If you check your orders, you can see on some OTC and on some TOTV.

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ok, cool, now I see. :slight_smile:
Can I see before I buy some shares if they are TOTV or OTC?
If I can, on what platform? Mobile, Web or both?

@Bogdan_Denis_Sava No way to know that in advance, except with fractional & value orders - they’re always OTC, so no taxes there.

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What is fractional & value orders? Can you give me an exemple?
Sorry for so many Q’s, but i only want to identify correct those situations so I can trade with more knowledge. :slight_smile:

Fractional as in not whole numbers of shares, and value as in I want to buy £x worth.

When you go to buy tap the arrow on Number of Shares to change it to Value.