2023-11-23 11:00:12
If you are looking to invest in the financial market you will need to know all the fees charged, as they can impact your results. Therefore, it is necessary to identify costs to calculate profits or losses. One of the main fees of B3 — the Brazilian stock exchange — are fees.
They have existed for a long time and affect all operations carried out on the stock exchange. However, many still don’t know them. So, how regarding understanding more regarding this subject and increasing your knowledge regarding the capital markets?
In this article you will learn what fees are, how they are charged, and the importance of knowing them. And you will also see other fees charged. Stay with us!
What are emoluments?
In a general context, emoluments are known as public service remuneration fees — in notary offices, for example. They include both notary and registration fees, dating back to a period when public records were made manually.
Although B3 is a private institution, in the past the exchanges were controlled by the State Finance Department. Thus, they were linked to the civil service. Therefore, with each registration of a negotiation, fees were charged.
Even following the stock exchange separated itself from the public sector and technology eliminated manual recording, the charge persists as a way of remunerating the recording of operations. Thus, all those who trade variable income assets will have to pay fees.
The rate applies to operations with shares, options, futures contracts and others. The fees then refer to the remuneration paid to B3 for cataloging activities and storing information regarding each transaction carried out.
How does billing work?
Fees are charged automatically by B3, through the investment bank used. Whenever an investor carries out a market operation, the institution deducts the amounts owed from their balance and records them in the brokerage note.
Despite participating in the collection, the investment bank is not responsible for defining the amount charged as fees. This means that this fee is not negotiable or subject to exemption. On the contrary, the institution has the duty to discount it and pass it on to B3.
The value of the fees is made up of the negotiation fee and the settlement fee. Their percentages vary depending on the financial volume traded, the types of operations carried out (day trade or normal) and the type of investor (individual or investment fund).
Another charge that can influence fees is the ISS (Service Tax). As it is a municipal tax, its incidence varies between municipalities. Therefore, the collection may differ between investment banks, depending on the city in which it is located.
How important is it to know the fees?
Although it is automatic and mandatory, many people can invest in the stock market without realizing the fees. This is because they correspond to a very small percentage of your operations (less than 1%).
However, its knowledge is essential for anyone who wants to operate in the financial market without surprises. After all, any charge can impact your results. Furthermore, you need to know that not all of your balance can be involved in one operation, as the rate will be discounted.
Check out more reasons to learn regarding the fees!
Calculate net profit
Knowing what your net gain was in an operation is not only important for your financial control. It is also essential when paying Income Tax, for example. This is because the tax allows you to deduct fees and losses, if applicable.
Therefore, you only need to pay the tax on the net profit of an operation. Therefore, it is worth recognizing the fees to deduct. They can be seen in the brokerage notes for your purchases and sales.
Failure to make this calculation might lead the investor or speculator to pay too much tax. Consequently, you may lose money.
Evaluate cost-benefit
Having knowledge regarding fees is also vital for market speculators — especially day traders. The operator’s objective is to extract profit from the price variation of an asset or derivative in the short term. Therefore, you can perform several operations per day.
It turns out that, unlike income tax, fees are charged for each new operation, regardless of whether it produces profits or not. This means that, even in losing operations, the trader must pay fees.
In this scenario, if the speculator does not know how to evaluate the amounts charged, he may have negative results when accumulating the fees. Therefore, knowing how to identify costs is essential to analyze the benefits of your operations.
What other rates demand the attention of the investor or speculator?
In addition to the fees charged by B3, there may be some additional fees involved in investments or speculation. One of them is Income Tax, as we have already seen.
There are also charges made by investment banks for providing their services. This is the case with the brokerage fee or custody fee. In investments in investment funds, there may also be an administration fee and performance fee.
As each institution or manager has the freedom to determine the amount and method of charging these fees, the investor can analyze the cost-benefit. Therefore, it is feasible to look for options that you trust and that have a good structure in terms of rates.
Conclusion
Now you know the fees and understand more regarding the fees that can influence your earnings on the stock market. As seen, charges will be present in the daily life of the investor or market speculator.
And it is up to each investor or operator to take them into consideration when choosing negotiations aligned with their profile. Therefore, never fail to monitor the percentage of fees and other fees paid in your operations. After all, they can impact your results over time.
Still have questions? Enjoy and ask a question in the comments field!
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