Newbie question - min purchase?

[rayonline]

I know you can just buy one unit. But in your view what is the min purchase? You have to manage the fees and ideally still provide a decent return vs others like a bank deposit account or a bond. Would your have a size so the brokerage fee (buy) is around 1% or 1.5%? Not so much for mature stocks but ones that is more a growth one and that doesn't provide dividends. Ie more risky. Also for those who have less than $50k for the total portfolio.

[Okebw]

I know you can just buy one unit. But in your view what is the min purchase? You have to manage the fees and ideally still provide a decent return vs others like a bank deposit account or a bond. Would your have a size so the brokerage fee (buy) is around 1% or 1.5%? Not so much for mature stocks but ones that is more a growth one and that doesn't provide dividends. Ie more risky. Also for those who have less than $50k for the total portfolio.

The minimum holding is roughly $250 worth (for ASB securities at least).
https://www.asbsecurities.co.nz/section240.asp

Personally I won't purchase in batches lower than $3000 or so unless it's purely speculative (Aussie mining explorations and the like) in which case I'll go as low as $1000. Provided you aren't buying and selling too often I find it easier to just ignore the brokerage when monitoring/deciding on investments

[Harvey Specter]

The NZX has minimum requirements which must be met at time of purchase. If price goes down you don't have to top up but company can compulsory acquire. Its a sliding scale but I view it as $500. I have seen this happen. Even took advantage of it once.

When I started, my minimum purchase was $5k. I have now increased to ~$10k. I think with ASB, after $15k there is no economies of scale so if I wanted to enter a new stock and hold more than than, i would probably stage my entry. I haven't needed to this this so far as any holdings above $10k have been multiple purchases over a long period or time (or share price appreciation).

[Jantar]

I was active in share trading before the 1987 crash, but haven't done any since then until quite recently. Back in those pre-internet days, there was a minimum holding, but also a tradeable parcel size (usually 100 shares), Parts of parcels were not tradeable except as a special trade at a horrendous brokerage fee.

The brokerage fee structure today seems to allow unusual size trades quite easily without the penalty that used to occur. The downside is the higher minimum brokerage fee which means that the buying of share parcels of less than 1000 shares is usually not worth considering. On the other side selling unusal sizes seems to be almost the norm. Maybe someone more experienced will correct me if this is wrong.

[Jay]

Here you go ray - from the ASB securities site, as it says it is NZX requirements not specific to ASB Sec.

Minimum Holding Requirements
The New Zealand Exchange determines minimum holding requirements for NZX equity securities. Use the following table to understand the minimum holding required when trading in NZX equities.


Where the price does not exceed $0.25

2,000 shares



Where the price exceeds $0.50 but does not exceed $1.00

500 shares



Where the price exceeds $1.00 but does not exceed $2.00

200 shares



Where the price exceeds $2.00 but does not exceed $5.00

100 shares



Where the price exceeds $5.00 but does not exceed $10.00

50 shares



Where the price exceeds $10.00

25 shares








Exceptions



ASBPA/B

5,000 shares (1000 shares thereafter)





TNZ

1,000 shares



FNZ

500 shares



MDZ

500 shares



NZO

500 shares



OZY

300 shares



MZY

300 shares







ASX Minimum Holding Requirements

There is no minimum holding requirements for the Australian Exchange, however the minimum investment amount is approximately AUD $500.00