Beating the fees

[arekaywhy]

Guys,

What are your strategies, if any, with regards to reducing the effect of the brokerage fees?

For example, I am using ASB, and the minimum brokerage fee is $30 on trades over $1000, so my strategy thus far has been to make a minimum trade of ~$3000 at a time, thus limiting the brokerage fee to 1% of the trade.

The way I figure is that I accept a 1% loss straight away on the holding. This means that should I wish to sell, I have to make 2% gain just to break even, given the fee on the sell trade.

Anyone got a better idea?

[blackcap]

Guys,

What are your strategies, if any, with regards to reducing the effect of the brokerage fees?

For example, I am using ASB, and the minimum brokerage fee is $30 on trades over $1000, so my strategy thus far has been to make a minimum trade of ~$3000 at a time, thus limiting the brokerage fee to 1% of the trade.

The way I figure is that I accept a 1% loss straight away on the holding. This means that should I wish to sell, I have to make 2% gain just to break even, given the fee on the sell trade.

Anyone got a better idea?

Sharesies, no minimum fee, brokerage of 0.5%. So on a $100 order you pay fees of 50cents. On a $1,000 order you pay fees of $5. On a $3,000 order you pay fees of $15.

[arekaywhy]

Sharesies, no minimum fee, brokerage of 0.5%. So on a $100 order you pay fees of 50cents. On a $1,000 order you pay fees of $5. On a $3,000 order you pay fees of $15.

Thanks blackcap, I understand that there are limitations to sharesies though that might limit my options. That said, I do plan to open an account with them and try to take advantage of them, particularly if I want to put money into ETFs on an adhoc basis.

[justakiwi]

Plus the annual membership fee of $1.50 a month, up to $3000 portfolio value, then $30 a year flat rate. Still the cheapest option, unless perhaps you are only ever buying/selling much larger amounts at a time.


Sharesies, no minimum fee, brokerage of 0.5%. So on a $100 order you pay fees of 50cents. On a $1,000 order you pay fees of $5. On a $3,000 order you pay fees of $15.

[percy]

Take care with fees.
A good broker who charges for full service, can be the most profitable way to invest in the sharemarket.
I was very fortunate to deal with Lawrence,Milton and Howarth in ChCh, before they became a part of Craigs' Luckily all staff stayed on.
Sound advice saved me making a lot mistakes.Capital lost takes a lot of making up.Saving $75 on brokerage while losing $1,000 or $2000 is stupid.
Last year our profit, on hard to get Napier Port shares, was enough to pay 5 or 6 years of brokerage.

[SBQ]

Take care with fees.
A good broker who charges for full service, can be the most profitable way to invest in the sharemarket.
I was very fortunate to deal with Lawrence,Milton and Howarth in ChCh, before they became a part of Craigs' Luckily all staff stayed on.
Sound advice saved me making a lot mistakes.Capital lost takes a lot of making up.Saving $75 on brokerage while losing $1,000 or $2000 is stupid.
Last year our profit, on hard to get Napier Port shares, was enough to pay 5 or 6 years of brokerage.

I can assure you a lot of clients would not be particularly happy with their advisor and or NZ brokers if they knew they could get a better fee elsewhere? (particularly due to underperformance or poor returns?) It's like they prey on the 'unknowing'

How are those Napier Port shares going to do in these times of COVID19 + lack of tourism? My last visit in Napier back in Nov, locals told me the new ports were to provide docking for the larger cruise ships for the local tourism... will that ever come back? Interesting times.

[percy]

Napier Port shares sold.Profit of over 30%..
Excellent broker.excellent returns.
Same with my lawyer,accountant,doctor,and dentist.
Get the best and you get the best results.
Pay for cheap and do not be surprised when you get cheap.

[kiora]

Napier Port shares sold.Profit of over 30%..
Excellent broker.excellent returns.
Same with my lawyer,accountant,doctor,and dentist.
Get the best and you get the best results.
Pay for cheap and do not be surprised when you get cheap.

I'm with Percy there.
They tend to pay for themselves on new issues allocation
Napier port seems to be busy enough?
https://www.napierport.co.nz/quick-links/shipping-schedule/

[SBQ]

I'm with Percy there.
They tend to pay for themselves on new issues allocation
Napier port seems to be busy enough?
https://www.napierport.co.nz/quick-links/shipping-schedule/

Tell me who are the ones that get these IPOs? I can assure you maybe 99% of the account holders do not benefit and or have their brokers allocating these shares to them. IPOs are only reserved for top 1% or so of their clients.

Yet, the 99% still are stuck with the same trading fees as everyone else.

Easy enough to cherry pick you winners... how about how many losers the NZX has seen in the past 20 or 30 years? My guess, far too many.

[Paradox]

Thanks blackcap, I understand that there are limitations to sharesies though that might limit my options. That said, I do plan to open an account with them and try to take advantage of them, particularly if I want to put money into ETFs on an adhoc basis.

I could be wrong, but you can't place a stop-loss order with Sharesies; it also takes a bit longer to transfer in/out funds compared to ASB.

[kiora]

Tell me who are the ones that get these IPOs? I can assure you maybe 99% of the account holders do not benefit and or have their brokers allocating these shares to them. IPOs are only reserved for top 1% or so of their clients.

Yet, the 99% still are stuck with the same trading fees as everyone else.

Easy enough to cherry pick you winners... how about how many losers the NZX has seen in the past 20 or 30 years? My guess, far too many.

"Tell me who are the ones that get these IPOs? "
The ones that support the brokers:)
Yes you're right about cherry picking :)
Like Mr P I also sold NPH to pay down revolving credit in early Feb
High trading fees are due to high trading.
They are a lot less for investors
PS I rarely follow brokers recommendations

[arekaywhy]

I could be wrong, but you can't place a stop-loss order with Sharesies; it also takes a bit longer to transfer in/out funds compared to ASB.

Ok so that could be a pain in the anus