Investors should include the costs of buying and selling stocks when calculating the returns on stock investments.

Common types of fees and charges of stock trading:

• Brokerage commission: Usually expressed as a percentage of the transaction amount, normally with a minimum charge for brokerage commission. Some intermediaries may set different commission rates based on the client’s tier. Since brokerage commissions vary among intermediaries (banks and brokerage firms), you should compare their services carefully.
• Other fees

_{* The Investor Compensation Levy has been suspended by the SFC since 19 December 2005.}

Commissions and trading fees are payable for every transaction. If you trade stocks frequently and do not intend to hold them for the long-term, the seemingly insignificant costs will add up over time and undermine your investment return.