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How to Read a Brokerage Account Statement

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Key takeaways

A brokerage account statement is a document that captures the current state of your portfolio, the history of transactions, and a cost overview — and understanding its structure will save you trouble at tax time.

What the statement contains

A standard statement includes:

Cost basis and taxes

Keep a record of the cost basis — when you sell securities, you'll need the difference between the acquisition and sale price to calculate taxable gain. The acquisition date determines whether the three-year holding period test has been met: securities held for more than three years are exempt from tax under applicable legal conditions. For the full tax context, see the article ETF taxes in the Czech Republic.

Tip: Export your statement in CSV or Excel format once a year and save it locally. Brokers may delete history or charge for archived records.

How to read unrealized gain

Unrealized gain (or loss) shows how much your portfolio has grown since purchase. However, it is only a paper value. It becomes reality at the moment of sale. Don't let a tempting green number push you into selling prematurely, or a red number into panic.

Fees in the statement

Go through the fee section every year. If you see significant amounts paid in non-trading fees or forex conversion charges, it's a signal to reconsider your broker. More on the true costs of fee-free investing in the article on brokers' hidden costs.

FAQ

What is cost basis?

The total amount you paid for a security, including fees. It is the basis for calculating taxable gain or loss at sale. Without it, you cannot correctly file a tax return.

What is unrealized gain?

The difference between the current market value and the cost basis of securities you still hold. It is a "paper" gain — it becomes real only upon sale. Until then, it is simply information about the current state of your portfolio.

How long should I keep my statements?

In the Czech Republic, a minimum of three years after the sale of the security is recommended, ideally longer. The tax authority can review tax returns retrospectively, and the cost basis is a key supporting document.

What should I do if cost basis is missing from my statement?

Look for it in the transaction history or trade confirmations. If the broker doesn't have the history, try exports from the time of purchase. As a last resort, consult a tax advisor on how to proceed with missing documentation.

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