Online Broker sales proceeds clearance

[johna]

I am an ex Access customer. When I sold shares with them, the money was available immediately for reinvestment (although this all ended in tears).

Now I am using ASB, and I sold shares yesterday, but my available balance is still not reflecting the proceeds. How long am I expected to wait before I can spend the money?

I also have an account with Direct, but not one of their cash management accounts because of my experiences with Acccess. Do they clear proceeds into the cash account straight away?

I believe that National do, but that is because of their funny system where they hold the shares in trust rather than letting you have them in your own name, which would prevent me from using them...

What do other poeple do? Although I am not a trader, I usually sell one stock intending to buy another and do not want to wait in between.

[duncan macgregor]

I phoned them up and asked them if i could sell and buy with the proceeds as i did with access. It was no problem they put it in a ledger acc and i payed the difference. macdunk

[johna]

and them would be??

[port hills]

I'm at National Bank and they do generally clear the funds the same day, but they are not consistant and seem (in my case anyway)to often run into delays. It can take 20 minutes or a full day?
This is a pet hate of mine, also the time it takes to process an order is unacceptable.
The New Zealand broking industry seems to live in the dark ages it is impossible to be a spritely trader if your broker may take 15 minutes to place a sell order then 4 hours to clear the funds (if they weren't too late to catch the buyer) then 15 more to place the buy order. (whats the chance that the situation you spotted is still there?)
In the states you can make a trade of any size for $10 US and it's free if the order is not on within 5 seconds!
Day trading the NZX forget it, they don't want the business!

Right, now I feel better have a good day everyone. :)

[duncan macgregor]

JOHNA, sold pgg and bought more of nog on the 4th of feb macdunk

[port hills]

quote:Originally posted by duncan macgregor

JOHNA, sold pgg and bought more of nog on the 4th of feb macdunk


I think Johna ment which broker? :)

[duncan macgregor]

Silly me i took that for granted the same as him ASB. macdunk

[PennyPicker]

quote:Originally posted by johna

I also have an account with Direct, but not one of their cash management accounts because of my experiences with Acccess. Do they clear proceeds into the cash account straight away?

John, I have a Dorchester account with Direct. If I sell some shares the funds appear immediately in the account, but don't appear in the 'cleared' section. This doesn't seem to have affected further share purchases which I have done with uncleared funds.

I suspect the cleared funds is what's available to you if you wish to draw down the cash to another account. Maybe a DB rep could confirm this?[?]

[PennyPicker]

quote:Originally posted by johnaWhat do other poeple do? Although I am not a trader, I usually sell one stock intending to buy another and do not want to wait in between.


John, you might like to take advantage of the credit purchase facility with DB. I use to use this alot before getting the Dorchester call account as it meant I could make purchases when I didn't necessarily have the $$$ on hand. Allowing me to purchase at the price I wanted and paying DB a day or so later. (Think you've got maybe a week or so to pay any outstanding credit with DB).

[combi]

quote:Originally posted by port hills

I'm at National Bank and they do generally clear the funds the same day, but they are not consistant and seem (in my case anyway)to often run into delays. It can take 20 minutes or a full day?
This is a pet hate of mine, also the time it takes to process an order is unacceptable.
The New Zealand broking industry seems to live in the dark ages it is impossible to be a spritely trader if your broker may take 15 minutes to place a sell order then 4 hours to clear the funds (if they weren't too late to catch the buyer) then 15 more to place the buy order. (whats the chance that the situation you spotted is still there?)

In the states you can make a trade of any size for $10 US and it's free if the order is not on within 5 seconds!
Day trading the NZX forget it, they don't want the business!

Right, now I feel better have a good day everyone. :)


Agree PH, they are very slow at times. Even slow sending email to confirm that trade has been completed. With AU trades they are pathetic!!! Dark ages is right on!!!

Is their a broker in AU that can be used to trade both NZ and AU market? I'm prepared to pay more to get better service.

Combi

[Sky Tower]

My experience using the National Bank site is that they settle purchase/sale trades within 4 minutes to 2 hours for NZX trades. Its great to have this money quickly so you can put it back into the market
Like everything there are delays on occasion but 99 % of the time it is within this time frame. I get my e-mail confirmations promptly.
i dont trade on the ASX so cant comment on that

Least I dont have to wait for T + 3.
I enjoy getting all my notifications/contract notes online

[Paper Tiger]

Remember that with ASB and other brokers settlement for trades is T+2 for buys (they take the money from your account 2 days after the trade day) and T+3 for sells.
So if you have $10,000 in your account, do a buy of $9,000 and a sell of $9,000 ON THE SAME DAY then the actual account will have $9,000 disappear two days later (Balance $1,000:() and $9,000 appear the day after that(Balance $10,000[^])

However if you dive in the account summary bit of the ASB website then it shows a different story. On the day with only $1000 balance it will show an available funds of $10,000 made up of the actual account balance of $1,000 plus $9,000 awaiting settlement ( from the sell) giving $10,000.

I have never got myself into the situation but it is possible that you have available funds but a negative actual account balance and presumably an interest charge.

regards

Paper Tiger

[bear]

My understanding with Direct using the cash management A/c is that funds are available on the same day with NZ transactions but T+3days for Aust

online confirmations are a little tardy although i get an email almost immediately confirming the transaction has occured.

Bear

[Sky Tower]

With The National Bank my experience is you can chose to hold your shares 'in custody' (my trading stocks) or you can transfer them to the share regisdtry by inputting your CSN and FIN number (my investment stocks). With National Bank you have the choice - But I like seeing my portfolio (profit/loss) online every day.

With my normal full service broker I see nothing online.

[whiteheron]

johna

I trade with ASB Securities all the time

If you make a sale the proceeds are available for re investment immediately ( or within maybe half an hour , just as long as the computer system takes to update )

Settlement takes place in two days , but the settlement of a subsequent purchase also takes place in two days , hence you will have the funds available for the purchase and will not go overdrawn

Your balances can be checked at any time by going into " Account Balances " on the ASB Securities website (second from the left )
They sometimes are a bit slow updating though

( Edit has changed three days to two days )My apologies for the error

[zyreon]

hrmm, last i knew it was buy = T+2, sell = T+3

which would mean a one day delay... (if you wanted to settle your buy with proceeds from the sell)

[Sky Tower]

With a full service sharebroker settlement for a buy is T+ 2 and for a sell it is t + 3 and they charge you up to 1.5 %.

With National Bank Online Share Trading (the only service I use) my experience is that all sale trades are settled within 4 minutes to 2 hours. Sure there are occasionally delays (as with everything) but given the brokerage rates are $29.50 or 0.3 % (compared to 1.5 % for a full service broker). The quick settlement allows you to put money back into the quickly (like the same day)

Which service would rather use ??

[whiteheron]

I trade online with ASB Securities

To verify the position I have just telephoned them and they have advised that for online trading for NZ and Australian shares settlement is two business days after the transaction date = T + 2

I previously advised T+3 --- sorry for the error

I am going back to correct my earlier posting

[Placebo]

I use Forsyth Barr, and have set up a nominal cash management account with them. When I place buy and sell (or rather sell and buy) orders, the funds from the sale is held in the CMA until the purchase is made. It is not instant, but as far as I know it is as smooth a system as they can offer at present.

My understanding is it takes a sale 3 working days to clear.

[Bobby_Fischer]

Placebo, do Forsyth Barr now offer an online broking service? Spoke to a broker there a few months back and was told "No.".

[Placebo]

Not that I know of.

[Sky Tower]

quote:Originally posted by Placebo

I use Forsyth Barr, and have set up a nominal cash management account with them.


After Access Brokerage Im having nothing to do with any special 'Cash Management Account'. Once bitten twice shy.
What does Cash Management Account mean - that they can 'manage my cash' like last time - I dont think so!

Im dealing with a broking service thats related to a Bank. I work too hard to lose my money!!

If my own bank account aint good enough then nada nothing zip zilch. I aint setting up any 'special' account like last time

[barney]

One of the good things about changing to ASB after the Access demise is that transferring money from my ASB cash management account into my regular ANZ account is done without the need for five days bank clearance.

I don't know how many of you guys had this problem but it was a pain in the rear.Anz would always say it was an Access problem as they would transfer the funds without correct clearance and Access would always blame the ANZ.No such problems with ASB Securities.

Of course I now realize it was Access's fault and that they were probably doing this on purpose so they could keep the money moving around in their accounts for an extra five days to cover their hides.

[PaulaEd]

I think from memory, I had a look at DB CMA and I think they say they reserve the right to pay out. I decided not to open an account with them, just pay the extra brokerage, so they couldn't hold money up for a reason. If I'm wrong my apologies.

[Ripping]

I am also an ASB customer , and Iit will take two to three days for the results of your trading to show in your account. However you can use the money that you 'know' is available immediately... (I phoned a year or more ago to ask the q).

[Placebo]

SkyTower, just to clarify, I don't actually hold any funds in the Cash Management Account, but it provides a vehicle to store funds for a day or three while trades are going through (I place sell and buy orders simultaneously). The account only pays interest on deposits over (I think) $3000, and if I had that much in there I'd rather it was in equities. Besides, I get better interest at the bank.

The Forsooth Barr account has a direct debit facility from my bank account, where my real money is (or isn't ;)), if I require additional funds for investing.

Anyway, the system works well for me, and I have no exposure should the brokerage collapse (which appears unlikely as it's the largest in the country).

[Sky Tower]

quote:Originally posted by Placebo


The Forsooth Barr account has a direct debit facility from my bank account, where my real money is (or isn't ;)), if I require additional funds for investing.

Anyway, the system works well for me, and I have no exposure should the brokerage collapse (which appears unlikely as it's the largest in the country).


Not (generally) correct. It is one of the four largest brokers in New Zealand, the others being First NZ Capital, Goldman Sachs JB were and ABN Amro Craigs.

By most IFIINZ measures eg: $ value of trades, no of trades etc First NZ Capital is the largest broker in New Zealand (generally accounting for more than 25% of the NZ mkt) The broking firm you mention does however have a large private client database.