Stock Trading Fees: How to Optimize Your Investment Costs

When entering the world of stock trading, one of the first factors traders need to consider is not the potential profit, but the costs behind each transaction. Stock trading fees not only directly impact profit performance but also influence your trading strategy choices. So, what are these types of fees, and how can you minimize them?

Basic Fee Structure in Stock Trading

If you plan to invest in listed stocks such as Vinamilk or Vin Group, you should remember a series of fees applied by securities companies.

Stock transaction fees are the most basic costs. According to regulations, this fee does not exceed 0.5% of the transaction value, but in practice, it usually ranges from 0.1% to 0.35%. Every time you buy or sell, this fee will be deducted. For example: if you buy 100 shares at 50,000 VND per share at SSI (m with a fee rate of 0.25%), you will pay 12,500 VND in purchase fee, and similarly when selling.

Custody fee is a monthly cost to ensure ownership of shares at the Central Securities Depository. This fee does not exceed 0.5 VND/share/month — a small amount but can accumulate significantly over a large portfolio.

Pre-approval margin fee appears when you need cash immediately after selling shares, instead of waiting T+2.5 (2.5 days). This fee is usually about 0.0367% per day. If you need to borrow money for 100 shares at 50,000 VND for 2 days, the cost will be 3,670 VND.

Taxes also cannot be overlooked:

• Stock transfer tax: 0.1% of the sale value (only the seller pays)
• Dividend tax: 5% on received dividends

Additionally, there are many other fees such as account opening fee, deposit/withdrawal fee, consulting fee, ownership transfer fee. In total, an investor executing a buy-sell round can lose 0.5% to 1% of the transaction value just due to fees.

Derivatives Securities: Simpler Trading Fees

Conversely, derivatives trading (such as international indices) has a much simpler fee structure. You don’t need to worry about custody or ownership transfer fees because you do not hold actual assets.

Commission fees in derivatives trading are often very low or even free. Spread fee (the buy-sell difference) is the actual fee you pay, but it is usually automatically included in the price you see.

Overnight fee applies only if you hold a position overnight — low fee but accumulates if held long-term. Deposit/withdrawal fees are usually charged by banks or payment methods, not by the trading platform.

The biggest advantage is that you can trade with a low margin ratio (usually 0.5%), amplifying potential profits. For example: with an initial capital of 133.94 USD, you can control a position of 26,787.5 USD on the US30 index.

Comparing Stock Trading Fees Among Companies

In Vietnam, securities companies fiercely compete on fee levels:

FPTS stands out with the lowest fees: from 0.08% to 0.15% depending on trading volume (below 200 billion → from 20 billion upwards). Bond transaction fee is only 0.05%.

HSC offers a preferential model: online transaction fees are lower (0.2% for trades under 100 billion) compared to through brokers (0.35%).

SSI maintains 0.25% for online transactions but increases to 0.4% if under 50 billion VND.

Vndirect applies 0.2% for independent trading, 0.35% via broker.

Techcombank is a good choice for personal bond transactions (0.15%) with bond fees as low as (0.01% for organizations).

MBS offers a cheap MBS online package (0.12%), but fees via broker or counter are higher.

VCBS does not use a preferential model but instead offers service packages: active package 0.18% (stocks), and consulting package 0.2%.

Strategies to Minimize Stock Trading Fees

Choose smart trading channels: Online trading is always cheaper than through brokers. The fee difference can reach up to 0.15% — a significant amount per transaction.

Join VIP programs: Securities companies often reduce fees for high-volume traders. If you trade over 5 billion VND, the fee rate can drop to 0.08%-0.1%.

Use derivatives trading instead of underlying stocks: If you only seek profit from price differences without owning actual shares, derivatives can save considerable costs. No custody, re-issuance, or ownership transfer fees.

Short-term but effective trading: Reducing the number of transactions will lower total costs. Instead of daily trading, consider more calculated trades.

Follow seasonal promotions: Many securities firms cut or waive trading fees during certain periods to attract new customers.

2024-2025: Which Choice Is Suitable?

Investing in underlying stocks requires large capital and deep knowledge of the Vietnamese market. This market also has limitations such as no intraday trading (T+2.5) and inability to access foreign stocks.

Instead, derivatives trading offers higher flexibility: you can profit from both rising and falling markets, trade international indices like US30, and use leverage. Costs are also significantly lower, making it an attractive option for beginner traders.

However, regardless of your chosen path, understanding stock trading fees and their impact is key to optimizing profits. Carefully compare fee schedules, select a company that fits your needs, and always remember that every 0.1% fee can skew your final results.