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View Full Version : Best Value Broker for Fixed Interest?


Alan3285
20-11-2009, 11:13 AM
Hi All,


Just wondering who you use for buying and selling fixed interest securities (and indeed equities)?

Who is the 'best' (and why)?

Who has the best price?


Thanks,

Alan.
Ptolemy
20-11-2009, 09:02 PM
Hi

I haven't done a huge amount on resarch but I can tell you that ASB Secutities charge 0.7% min $35. I had looked at Equity (IRG group) and from memory they charged over 1%. You do need to talk (call) one of their fixed interest brokers - i.e. you can't do it online.

Hope that's helpful.
Xerof
20-11-2009, 09:10 PM
unfortunately, the brokerage charged by most brokers is horrendous for Fixed Interest...this is partially the reason why there is such bad liquidity in these markets.

I get charged 0.35% on each trade, which I suspect is way below the average charged.
Alan3285
20-11-2009, 10:01 PM
Hi Xerof,




unfortunately, the brokerage charged by most brokers is horrendous for Fixed Interest...this is partially the reason why there is such bad liquidity in these markets.

I get charged 0.35% on each trade, which I suspect is way below the average charged.




Who do you use?

Thanks,

Alan.
Xerof
21-11-2009, 10:00 AM
a close personal friend, but I had to negotiate to get that rate, mate, and it is partly based on the volume I put through them.
GTM 3442
21-11-2009, 07:46 PM
I use Direct, and it varies from 0.45% to 0.75% depending on sive of order, how much I've pushed through recently, that sort of thing.
Alan3285
23-11-2009, 04:32 PM
I asked ASB and they are:

Phone: 0.7% with a minimum of NZ$35.00 per trade

They do internet for shares, but not fixed interest. No idea why! For that they are slightly cheaper.

Anyone found a better deal?

Alan.
Contrarian
23-11-2009, 07:40 PM
Gidday
As GMT suggests go to Direct website, they have a rates page.

They charge the same rate for T + 3

I can recommend them.
Alan3285
23-11-2009, 08:06 PM
Hi Contrarian,




Gidday
As GMT suggests go to Direct website, they have a rates page.

They charge the same rate for T + 3

I can recommend them.




I had a look at their rates page:

http://www.directbroking.co.nz/directtrade/static/ourrates.aspx


It looks like they are more expensive than ASB for trades up to $6,000, but then become cheaper.


Is there any reason why we cannot do the following?

Buy 10,000 bonds through DirectBroking (say, $10,000)

Sell 4,000 of those bonds through ASB (say, $4,100)


In other words, presumably once we have a FIN number etc we can use any broker for any trade?


Thanks,

Alan.
Contrarian
24-11-2009, 08:21 AM
Gidday

With your CSN & FIN you have the power, you can do as you suggest. Although I'm not sure of the logic of two sets of brokerage, I personally just use direct as they do a good job & like you say , it depends on the value of the trade.
Alan3285
24-11-2009, 09:19 PM
Gidday

With your CSN & FIN you have the power, you can do as you suggest. Although I'm not sure of the logic of two sets of brokerage, I personally just use direct as they do a good job & like you say , it depends on the value of the trade.




Yep - although I don't see the point in paying more than I have to for pure transaction broking, so I might just open an account with both and use whichever is cheaper for each trade.

Thanks,

Alan.
Alan3285
01-12-2009, 10:12 AM
Hi Contrarian (or indeed anyone else who knows),





I personally just use direct as they do a good job ...





ASB allows you to see the NZDX board, but you have to phone them to place a buy or sell on the NZDX.

Does DirectBroking do completely automatic online trading for fixed interest securities without having to talk to someone at DB?

If so, that will put them far out in front for me.


Thanks,

Alan.
Contrarian
01-12-2009, 09:08 PM
Gidday
Yes direct will action your order within a few mins of placement , no need for chit chat.
Alan3285
01-12-2009, 09:51 PM
Hi Contrarian,




Gidday

Yes direct will action your order within a few mins of placement , no need for chit chat.




But does that mean I have to call them and speak to someone?

ASB will also action an order immediately on the phone (if I am looking online while talking to them I can usually see the buy or sell on the board before hanging up), but I am looking for someone that will let me do it entirely online without having to involve a human being at their end.


Thanks,

Alan.