Managing order fees and commissions

LUSID allows you to apply fees, commissions and market charges as your allocations are booked as transactions, which are subsequently factored into valuation calculations.

You must create a special type of transaction property and attach it to a fee and commission rule. As transactions are booked, LUSID listens and applies fees, commissions or market charges as properties if the transaction meets the conditions specified in a rule.

For example, a Trader might want to place an order with Broker A who charges a fee of 0.02%. You can use the LUSID web app to ensure this fee is applied to all transactions executed by Broker A from a specified effective date:

1. The first step is to create a new transaction property as usual via the Data Management > Properties dashboard. You can then choose whether you want to create a Fee, Commission or Market Charge property type. For this example, you might create the property Transaction/fee/BrokerA for the fee charged when an order is executed by Broker A.
   
2. You can then create a fee and commission rule to add the property to via Data management > Fee & Commission rules dashboard. In your rule, you can specify:
   • The conditions which a transaction must meet for the rule to be applied.
   • What should happen when the rule is applied.
   For this example, you might create a rule to apply a 0.02% fee to any USD buy transactions executed by Broker A: