Investors do not look at their bank's securities settlement statement to see how much it has to pay to the stock exchange to place an order, settle the trade and end up with the securities in the custody account. Because most banks and brokers do not show the trading costs. Nevertheless, investors often want to know what the actual fees are. It is often cheaper than you think.

Overview for those in a hurry: fee regulation in floor trading
Two fee components in trading on the Frankfurt floor: the trading fee as the successor to the brokerage fee to remunerate specialists and the transaction fee for using the marketplace.
The fees consist of a fixed minimum fee and a variable fee for larger orders.
No calculation of partial executions on a trading day.
No trading fee is charged to banks when bonds are subscribed.
The trading fee in bond trading depends on the nominal value of the order.
The fees are net, i.e. VAT is added.

Shares and other unit-listed securitiesMinimum fee

 

Variable fee
Per order

€ 2.52

5.04 BP, d.h. 0.0504 %

Bonds and other percentage-listed securities  

Nominal order < 30.000€

€ 0.63

5 BP

30.000€ - 250.000€

€ 15

2 BP

250.000€ - 3.675.000€

€ 50

0.4 BP

> 3.675.000€

€ 147

omitted

For someone who wants to know exactly: the costs of your bank in detail

Deutsche Börse provides marketplaces where buyers and sellers meet for trading in securities such as shares, bonds, funds or other derivatives. Investors do not have direct access to the Frankfurt Stock Exchange - as they do on all other stock exchanges. They place their orders through a bank or broker.

You have the choice between two trading models: The classic fully electronic Xetra trading and the specialist supported trading on the Frankfurt floor, which is usually listed as Frankfurt in the order masks of the online banks.

Floor trading: System with people

In specialist trading on the Frankfurt floor, prices are determined in the system, but trading is also supervised by specialists. This provides investors with liquidity and protection, which can be particularly advantageous for stocks with low turnover. This service is indispensable for securities with a reference market such as funds, foreign stocks or a large proportion of bonds.

This support means that the costs consist of two components: One is the transaction fee for using the marketplace, the other is the trading fee as the successor to the brokerage fee, which includes the remuneration of the specialists. The banks and brokers pass these costs on to their customers in very different ways. While they fully integrate some into the bank charges per order, others show the trading fee as a stock exchange fee or charge a fee independent of the actual trading fee, which they refer to as a stock exchange fee.

Transaction fees in Frankfurt floor trading

The transaction fee depends on the fee model chosen by your bank. Three models are available depending on the total trading volume of the bank. Around 90 percent of all banks settle with the stock exchange according to the high-volume model, which is why this is the basis for the following.

For unit-listed securities - in particular shares, ETPs, subscription rights and a few bonds and profit participation certificates - at least 60 cents are payable. For larger orders, i.e. starting at 6,250 euros, an order costs 0.96 basis points (see table below). One basis point represents one hundredth of a percent.

Percentage-quoted securities, i.e. almost all bonds and many participation certificates, cost at least 90 cents and from 9,375 euros also 0.96 basis points.

Orders in mutual funds are invoiced with a fixed amount of 80 cents, plus 6.5 basis points of the volume, but at least 50 cents.

The fees for trading in investment and leverage products are differentiated according to the role of the participant. There is a minimum cost amount per executed order, a value-based settlement up to a certain order volume and a maximum fee with an upper limit (certificate price list as PDF).

Transaction feesMinimum feeVariable fee
Listed securities (excluding funds)

60 cent

0,96 BP (0,0096%)

Percentage-listed securities

90 cent

0,96 BP

mutual funds

Fix 80 cents
+ min. 50 cents

6,5 BP

Trading fee for the service of the specialists

The trading fee also varies depending on the type of quotation and order size.

For unit-listed securities, a minimum fee of EUR 2.52 is charged. For larger orders, i.e. from 5,000 euros, the fee for the specialist is 5.04 basis points (see table below).

For percentage-quoted securities, the nominal value of the order determines the trading fee.

The subscription of bonds is exempt from the trading fee. Nevertheless, some banks charge their customers a stock exchange fee. In this case, please contact your bank.

 

Shares and other unit-listed securitiesMinimum fee

Variable fee

Per order

€ 2.52

5.04 BP (0.0504%)

Bonds and other percentage-listed securities  

Nominal order < 30.000€

€ 0,63

5 BP

30.000€ - 250.000€

€ 15

2 BP

250.000€ - 3.675.000€

€ 50

0.4 BP

> 3.675.000€

€ 147

omitted

Variable costs in traditional Xetra trading

Even in classic trading on Xetra without specialists, your bank incurs value-based variable transaction costs, the amount of which depends on the selected fee model mentioned above and the order size. In the best case, this is 0.36 basis points of the order value. However, the value-based price applies up to a maximum order volume of 1.5 million euros, i.e. 72 euros. For ETFs, this limit lies at an order volume of 375,000 euros, or 13.50 euros.

 

 

Minimum fee

Variable fee

Shares, subscription rights, own-issued warrants

€ 0.60

0.48 BP, for orders up to € 1.500.000

ETFs, ETCs, ETNs

€ 0.60

0.36 BP, for orders up to € 375.000

 

About 700 bonds are traded on Xetra without specialists. The remuneration for these securities is the same for all selected remuneration models and depends instead on the nominal order volume. Bond orders up to 100,000 Euro cost 1.80 Euro fixed plus 0.48 basis points, then 6 Euro fixed and 0.06 basis points, or from one million Euro 9 Euro fixed plus 0.03 basis points.

 

Bonds

Minimum fee

Variable fee

Nominal order < € 100.000

€ 1.80

0.48 BP

€ 100.000 - 1 Million

€ 6.00

0.06 BP

> € 1 Million

€ 9.00

0.03 BP

 

Attention, value added tax!

In contrast to the brokerage fee valid until 23 May 2011, all trading costs are now subject to VAT. This, too, is handled differently by banks and brokers. Some of them now show VAT, others do not.

Further costs of your bank: Connection and participation

Of course, transaction fees are not all costs incurred by direct participants in trading, banks, brokers or traders.

In classic Xetra trading, the fixed monthly costs are between EUR 2,000 and EUR 20,000 depending on the selected fee model with a high, medium or low trading volume, while the monthly fixed fees for the provision of the Xetra trading system are between EUR 500 and EUR 4,500 per participant depending on the selected connection. The price depends on the required data transmission rate or the type of line to be set up. In addition, there is the annual participation fee of 1,500 euros.

In floor trading, banks that offer investors Frankfurt as a trading venue pay 4,000 euros annually and 250 euros for each admitted exchange trader. Companies that operate as specialists pay 25,000 euros annually and 2,500 euros for each trader.

Now it's time to settle: Settlement and Clearing

The purchase of the security is completed, Xetra forwards the details of the transaction such as price, number of units, time and participants (counterparties). The clearing process, i.e. the settlement of receivables and payables from securities or forward transactions and the exchange of the trading object and cash equivalent, the so-called settlement, is now still open.

In addition to a license, banks and brokers require a securities custody account and a cash clearing account with the clearing house. For a securities order on Xetra, Eurex Clearing, which provides these services for exchanges, charges 0.06 euros per executed order. A value-based fee of 0.08 basis points, i.e. 0.0008 percent, is charged for this, but a maximum of 4 euros value-based fee. In floor trading, 25 cents are charged for the so-called contract note after the conclusion of a transaction.

Further Links

Stand: August 2016/Edda Vogt

300 shares at € 10 Euro for € 3.000: 
Transaction fee = 60 cents. 
Trading fee = € 2.52

1,000 shares at € 10 Euro each for € 10,000: 
Transaction fee = 96 cents
Trading fee = € 5.04

 

A Bond for € 3,000 nominal, which is quoted at 102%. Price = € 3,060. 
Transaction fee = 90 cents. 
Trading fee = € 2.13 (€ 0.63 + 1.50).

Bond for € 10,000 nominal, quoted at 102%. Price = € 10.200. 
Transaction fee = 96 cents.
Trading fee = € 2.13 (€ 0.63 + 1.50).

300 shares at € 10 Euro for € 3.000:
Transaction fee = € 2,75 (€ 0,80 + 1,95). 

1.000 shares at € 10 Euro for € 10.000: 
Transaction fee = € 7,30 (€ 0,80 + 6,50).