Trading Fees and Commissions

Posted on July 27, 2020


In 2013 the shareholders approved $0.05 trading fees for both buyers and sellers of shares, providing me with $0.10 per trade.

Initially offers made to buy and sell could not be broken up. So if someone offered to sell five shares at $5.00 a shareholder would have to buy all five shares. When we switched to top of book trading, meaning shareholders must accept the best available offer, we also allowed offers to be split up.
With offers being split it meant that those making offers would potentially pay multiple trading fees for the blocks of orders they made. As this was a change from what was initially approved we decided to halt trading fees.

We are now ready to reinstate trading fees.

With feedback and recommendations from shareholders we will institute trading fees only on those accepting offers. In order to encourage more trading we will now provide a commission to any accepted offers.

This will encourage more shareholders to make offers, creating a closer spread, and hopefully stimulating more trading with more competitive offers.

How It Works

When a shareholder accepts an outstanding offer they will pay a $0.10 trading fee (no matter how many shares they buy).

The system (me) will take $0.03, and the remaining $0.07 will added to the account of the user who made the offer.

If a transactions crosses multiple offers the fee would be split among the offers accepted (ordered by best offer, and then ordered by date of offer made).

A Yes Vote: means we will implement this new program.

A No Vote: means we will return to charging $0.05 to both sides of all trades*.

*a return to the $0.05 fee would mean all parties involved in a trade pay the trading fee. for example, if someone bought a large number of shares across four peopleโ€™s offers then each of the five people involved in that trade would be charged $0.05 for a total of $0.25.

No - 51.0

void 43.0
egli 8.0

Past Discussion

beau ๐Ÿ’ฏโ˜•๏ธโ˜Ž๏ธ๐Ÿƒ (223.0 shares, voted yes)
how difficult is it implement the proposed system correctly? (what are the edge cases? are there unit tests?)
Mike Merrill ๐ŸŽ–๐ŸŒฎ๐ŸŒด
the dev team (aka @aaronpk) has reviewed and approved the proposal
aaronpk โ˜•๏ธ (177.0 shares, voted yes)
The edge cases are captured in the sentence "If a transactions crosses multiple offers..." This will definitely require writing new unit tests to ensure the logic is correct!
beau ๐Ÿ’ฏโ˜•๏ธโ˜Ž๏ธ๐Ÿƒ (223.0 shares, voted yes)
incentivizing trading + aaron writing unit tests = yes vote from me :)
Robby Russell โ˜•๐Ÿ’ฏ (115.0 shares, voted yes)
Would it be possible to have @aaronpk prepare a pull-request for such change if this gets approved? I'm happy to contribute a PR review.
JeffersonNunn (26.0 shares, voted yes)
No brainer here. Would be awesome to see this implemented.
kirillgoryunov โ˜•๏ธ (10.0 shares, voted yes)
It's high time! Yes vote from me!
void (43.0 shares, voted no)
NO until 'If a transactions crosses multiple offers the fee would be split among the offers accepted (ordered by best offer, and then ordered by date of offer made).' is exactly specified.
Mike Merrill ๐ŸŽ–๐ŸŒฎ๐ŸŒด
If an order is accepted (by buyer A) and it is being accepted from multiple offers (sellers B and C) then the commission would be split between sellers B and C. If the order was large enough to include seller D then seller D would also be added to the commission pool. If an order is so large that it encompasses eight sellers, then only the first 7 would split the $0.07 commission. The 8th seller would be determined first by best offer (so the worst offer accepted would be the one to get no commission) or if they match on price then the most recent offer would get no commission.
egli (8.0 shares, voted no)
This seems exactly backwards to me; shouldn't the fees be paid for the opportunity to list an offer?
Zach ๐ŸŒดโ˜• (35.0 shares, voted yes)
I don't see a downside to this.
Mr. Subterfuge (31.0 shares, voted yes)
@egil, that would inevitably deter new offers from being posted, since everyone would wait until someone else posted an offer in order to avoid the trading fee. Rebates for market makers incentivize liquidity.
Norberto Rodriguez ๐ŸŒดโ˜•๐Ÿ’ผ (21.0 shares, voted yes)
I think you're the smartest friend I have. I love this.
MrKleinBottle (1.0 shares, voted yes)
Sorry, I'm slightly confused. Does this mean there will only be sell offers from shareholders?
davehayden โ˜•๏ธ๐Ÿ’ฏ (302.0 shares, voted yes)
or will people who don't have shares be allowed to sell their shares too? no, wait..
The difference will be it you will lose $0.10 more when you accept a buy or sell offer, but it will be 0.07 (or less if it crosses many offers) gain if you make offers. So everyone will be incentivized to make more offers!
Mr. Subterfuge (31.0 shares, voted yes)
How long do you speculate it will take to implement the new trading program, assuming the vote passes?