Our Transaction Cost Analysis (TCA) platform provides insights that empower firms to benchmark execution quality and manage trading costs across jurisdictions. The analytics evaluate both explicit (commissions) and implicit (slippage and market impact) costs globally, supporting compliance with key regulatory standards such as MiFID II (EU), SEC Rule 606 (U.S.), and the Packaged Retail and Insurance-Based Investment Products (PRIIPs) regulation.
From industry news and ACA’s TCA reporting tool, we can infer the following:
- United States: Average commission rates are relatively low due to high competition among brokers and widespread use of algorithmic trading. Commission rates for low-touch and execution-only trading continue to hover at 1.7 cents per share. High-touch & commission-sharing-agreement commission rates are slightly higher at 3.4 cents per share on average.
- European Union: Under MiFID II, transparency requirements have led to more standardized commission structures, averaging 2 to 7 basis points depending on asset class and venue.
- United Kingdom: Post-Brexit, UK firms still align with MiFID II benchmarks, with commission rates like those in the EU.
- Asia-Pacific (Japan, Hong Kong, Singapore): Commission rates vary widely, from 3 basis points to 10 basis points, influenced by local regulations and market structure.
- Emerging Markets (Brazil, South Africa, India): Higher commission rates are common, often exceeding 10 basis points, due to lower liquidity and fewer execution venues.
Impact of the Current Administration’s Tariffs on Global Commission Rates
President Trump’s renewed tariff strategy in 2025 has significantly altered the global trade landscape. The average U.S. tariff rate surged from 2.3% in late 2024 to 15.8% by mid-2025, with projections suggesting it could reach between 18% and 20%.
The following are key impacts on commission rates and trading costs:
- Volatility and execution risk: Tariffs have increased market volatility, raising both implicit trading costs and commission expenses. Brokers and asset managers should adjust commission structures to account for higher execution risks. Total transaction costs in Europe have increased 20% to 25% since April 1, 2025, and the Asia-Pacific region, which has been hit especially hard by tariff news, has seen an increase in total transaction costs of up to 30%.
- Liquidity migration: With tariffs targeting specific countries (for example, 35% on Canadian goods and 50% on Brazilian exports), firms are redirecting trades to alternative markets. This shift often involves higher commissions due to reduced liquidity and unfamiliar regulatory environments.
- Compliance burden: The legal uncertainty surrounding the use of the International Emergency Economic Powers Act (IEEPA) to justify tariffs has added to compliance burdens. Firms are investing more in TCA tools to ensure best execution, which indirectly raises operational costs that may be passed on through higher commissions.
- Risk-based pricing models: According to Boston Consulting Group (BCG) economists, the tariffs have introduced radical uncertainty into global markets. In response, firms are developing flexible pricing models, including risk-adjusted commission rates that vary based on geopolitical exposure and asset class sensitivity.
Optimize Global Execution Costs
The current administration’s tariff policies have introduced new complexities and the ripple effects, from increased volatility to regulatory uncertainty, are reshaping how firms price execution services and manage transaction costs. ACA’s TCA data provides a robust framework for understanding commission structures globally.
Global execution costs are rising fast. Don’t let tariff-driven volatility catch your firm off guard. Request a demo of ACA’s TCA platform today and take control of your trading costs.
Reach out now to see how ACA can help you stay compliant and competitive across markets.