Here we give you all the information you need on what brokerage is and how to account for it. 

What are brokerage fees?

Brokerage is a fee that you pay to the broker when you buy or sell securities, such as shares. This transaction cost covers the broker's expenses and provides a profit margin for providing the trading platform and other services. Mutual funds usually have no brokerage fee when buying and selling, but may have a separate management fee.

What types of brokerage fees are there? 

There are fixed commissions, percentage commissions and a combination of both. 

Fixed brokerage

A fixed brokerage fee is a fixed charge you pay for making a securities transaction. This means that the fee is the same regardless of the amount. 

Variable brokerage fee

A variable commission is when you pay a percentage fee on the full transaction amount. If the variable commission is 0.2 % and you buy shares for 10 000 SEK, the commission will be 20 SEK. 

Variable commissions sometimes also have a minimum commission that must be reached. If the minimum fee is SEK 39 and the variable fee is SEK 18, you will pay the minimum fee of SEK 39. 

Fixed and percentage brokerage fees

In the case of a fixed and percentage brokerage, both a fixed and a variable fee are charged for your transaction. 

An example of such a brokerage fee is a fixed fee of SEK 30 and a variable fee of 0.4 % of the purchase price. For a share purchase of SEK 10,000, the variable fee would be SEK 40, giving a total brokerage fee of SEK 70.

These types of brokerage may also have minimum fees you have to meet, but it is more common for fully variable brokerages to have minimum fees. 

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How do brokers price their commissions?

The major Swedish brokers for securities transactions have different packages where the commission you pay differs. There are normally three different price packages. 

• Mini- or micro-packages: This package is best suited for people who do a lot of transactions at lower amounts, usually under €50,000. The commission is low for small transactions, and the package is often offered to attract new customers to the brokerage platform. The commission in this package is usually a low percentage fee and may sometimes include a minimum commission.
• Intermediate package: This package is best suited for people making medium-sized investments, typically between €50,000 and €150,000 per transaction. The commission is often a combination of a variable percentage fee and a fixed fee, providing a flexible cost structure for clients with medium transaction volumes.
• Fixed price package: This package is mainly intended for larger investors who make transactions of larger amounts, often over 150 000 SEK. The commission consists of a fixed fee regardless of the size of the transaction. For a fixed price package to be worthwhile, average transactions usually need to be significant in size, as fixed fees become more advantageous at high volumes.

Brokerage fees for trading in unlisted shares
Brokers who deal in unlisted shares usually charge a higher brokerage fee compared to listed shares. The brokerage fee for trading in unlisted shares is often between 3 % and 5 % of the transaction volume per trade, as these shares are less liquid and require more administrative handling.

How to record brokerage fees?

Brokerage is not normally recorded as a separate item but is included in the acquisition value when buying and in the sales price when selling. If you buy shares for SEK 10 000 with a brokerage fee of SEK 30, the acquisition value used for tax purposes will be SEK 10 030. When you sell, the brokerage fee is deducted from the sale price to calculate the capital gain or loss.

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Frequently asked questions

How are brokerage fees charged?

The brokerage fee is deducted at the time of the transaction. When you buy shares, the brokerage fee is almost always added to the total purchase amount, and when the transaction goes through, the broker deducts both the brokerage fee and the proceeds of the shares from your account. 

When you sell your shares, the commission is deducted from your sale amount at the time of the transaction. When the transaction is completed, the proceeds of the sale minus the commission are transferred to your account. 

What is the minimum fee?

The minimum commission is the lowest amount that the commission always costs. If the minimum fee is SEK 49 and the transaction has a variable cost of SEK 29, the fee you pay will still be the same as the minimum fee, i.e. SEK 49. 

Who decides how high the commission is? 

The level of the brokerage fee is determined by the online platform such as Nordnet or Avanza. The brokerage fee charged must always be clearly displayed, and if the online platforms change the brokerage conditions, they must inform customers about it. 

Do you pay brokerage fees when trading in unlisted shares?

Yes, it is common to have to pay brokerage fees when buying unlisted shares in the same way that a brokerage fee is charged when buying shares in listed companies.