I pay a Securities Transaction Excise Tax, why can't Wall St?

[matmar]

Every time I buy a stock with my TD Ameritrade account I get charged a fee. This fee is steep enough to prevent me from speculating in the market.

I'm pretty sure that small investors like me didn't create the speculative bubble that burst in 2008. Shouldn't this same type of regulation be re-implemented on Wall St to prevent speculative bubbles?

[Cool Logic]

1. As you pointed out, "small investors like me didn't create the speculative bubble..."

Likewise, many other traders had nothing to do with the malfeasance associated with the securitization of questionable mortgages.

Why should they be punished for the bailout of the offending organizations?

[former9thward]

2. Don't know what fee you are talking about.

I use both TD Ameritrade and Scottrade frequently and I have never been charged a fee.

[dkf]

3. I think to are confusing the SEC fee with commission.

"SEC Fee" — Section 31 Transaction Fees

When you sell a stock, you may have noticed that a small transaction fee, often just a few pennies, appears on your confirmation slip. Although some broker-dealers have described this charge as an "SEC Fee," the SEC does not actually impose this fee on individual investors.

The SEC does not impose or set any of the brokerage fees that investors must pay. Instead, under Section 31 of the Securities Exchange Act of 1934, self-regulatory organizations (SROs) -- such as the Financial Industry Regulatory Authority (FINRA) and all of the national securities exchanges (including the New York Stock Exchange) -- must pay transaction fees to the SEC based on the volume of securities that are sold on their markets. These fees recover the costs incurred by the government, including the SEC, for supervising and regulating the securities markets and securities professionals.

The SROs have adopted rules that require their broker-dealer members to pay a share of these fees. Broker-dealers, in turn, pass the responsibility of paying the fees to their customers. Thus, a broker-dealer that has questions about how its fees are calculated should contact its SRO, and a customer who has questions about how his or her fees are calculated should contact the broker-dealer.

Section 31 requires the SEC to make annual and, in some cases, mid-year adjustments to the fee rate. These adjustments are necessary to make the SEC's total collection of transaction fees in a given year as close as possible to the amount stipulated for that year by Section 31. If transaction volume in a given year increases, the SEC will lower the fee rate because each transaction has to contribute less to the target collection amount. But if transaction volume falls, each transaction will have to be charged a higher fee in order for the SEC to collect the target amount required by Section 31.  To find the current rate for Section 31 transaction fees, please visit the Division of Market Regulation’s Frequently Requested Documents webpage, and click on the most recent Fee Rate Advisory under “Section 31 Fees.” You’ll also find Fee Rate Advisories in the Press Releases section of our website. For official Commission Orders concerning fee rate adjustments, please visit the Other Commission Orders, Notices, and Information section of our website.

The charges on most securities transactions are known as Section 31 "fees." But the charges imposed by Section 31 on transactions in security futures are termed "assessments." As of fiscal year 2007, the assessment charged is $0.0042 for each round turn transaction (i.e., one purchase and one sale of a contract of sale for future delivery).

http://www.sec.gov/answers/sec31.htm

[former9thward]

4. I think the OP is confused by more than that.

How could the minor commission that Ameritrade and Scottrade charge prevent anyone from "speculating"? From the OP: "This fee is steep enough to prevent me from speculating in the market.