CAT Fees

What are Consolidated Audit Trails (CAT) Fees?

• A trading fee assessed on customer trade activity in US stocks and US options charged to cover a regulatory fee.

The CAT Fee is a fee mandated by FINRA and charged to executing brokers. The fee supports the operation and maintenance of the Consolidated Audit Trail (CAT) system.

The CAT system was built to provide regulators with a comprehensive view of market activities, making it easier to detect, investigate, and prevent market manipulation, fraud, and other suspicious activities. It enables the SEC and other regulatory bodies to track the entire lifecycle of trades across multiple trading platforms. The FINRA CAT Fee is based on transaction volume and applies to equity and options trading activities.

Many broker-dealers, including Webull, pass the fee to customers.

How much is the CAT fee?

• Equities: 0.000052 per executed equivalent share

• Options: 0.000072 per executed equivalent share

What is the definition of an executed equivalent share?

• 1 share in a Stock = 1 executed equivalent share 

• 1 Listed Option contract = 100 executed equivalent shares

For further details regarding this fee, please refer to the CAT Fee Webpage

https://www.catnmsplan.com/