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FINRA Trading Activity Fee (TAF)
What is FINRA trading activity fee on Tradestation and JP Morgan Chase. FINRA TAF fee of $0.000166 per
share for each sale of a stock and $0.00279 per options contract.
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FINRA TAF Trading Activity Fee Explained
If you’ve read our articles on hidden broker fees, you’ve likely seen regulatory fees mentioned. These fees are charged by all brokers, including full-service and discount brokers, and even “commission-free” brokers pass them on to clients. While these fees are small, they’re unavoidable, so you might want to know more about them.
Types of Regulatory Fees
There are three main regulatory fees you’ll see on your trade confirmations, each applied only to the sale of a security and charged by a different agency. The Trading Activity Fee (TAF) is charged by the Financial Industry Regulatory Authority (FINRA), the SEC or “Section 31” Fee is charged by the Securities and Exchange Commission (SEC), and the options fee is collected by the Options Clearing House (OCC). Below, we’ll explain more about these agencies and why they charge these fees.
FINRA’s Trading Activity (TAF) Fee
FINRA is a private, self-regulatory organization that creates many of the rules governing the securities markets and the firms in the industry. Most brokers are FINRA members because they want a say in new industry guidelines and best practices. FINRA also conducts regulatory exams of its members and licenses individuals working in the securities markets.
FINRA funds most of its activities through the Trading Activity Fee, which applies to sales of most securities. The TAF Fee is $0.000166 per share for stocks, with a maximum charge of $8.30 per sale. For example, selling 1,000 shares would cost $0.17. For options, the TAF fee is $0.00279 per contract, and for bonds, it’s $0.00105 per bond. Your broker collects this fee (you’ll see it on your trade confirmation) and sends it to FINRA.
The SEC Fee or “Section 31 Fee”
The SEC also regulates the securities markets, but unlike FINRA, it’s a government agency with
legislative authority. While FINRA members create best practices, they must follow SEC rules,
which are enforced by law. To fund its work, the SEC charges a fee on sales of listed equities,
roughly $27.80 for every $1,000,000 in sales. For example, a $10,000 sale would cost $0.28.
Options Regulatory Fee
Finally, the Options Clearing Corporation (OCC), which issues and guarantees options contracts under SEC supervision, charges a small fee on options sales to support its regulation of the options markets. This fee varies slightly by exchange but averages $0.02675 per contract.
Updated on 2/9/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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