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  1. #1
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    Default Margin Lending Fees

    ASB charge $125 every six months for operating a margin lending facility. This is waived if the interest charged to the client exceeds $400 for that period. I was recently charged $125 because the interest was only $388, a shortfall of $12. I wrote to ASB saying that the charge was iniquitous, particularly as the previous 6 months interest was about $1,600. They reversed the fee but warned me that this was a 'one-off' and that they might not be so generous for the next six months. So much for the many thousands of dollars ASB have earned over the past decade from me for interest and share transaction fees ($30 up to $10,000 then increasing after that depending on share value).

    I'm now feeling unloved at ASB so would appreciate hearing what other brokers charge for trading and margin lending fees. Can I do better?

  2. #2
    Guru peat's Avatar
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    Aug 2004
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    Whanganui, New Zealand.
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    Default

    CFD's might be cheaper.
    For clarity, nothing I say is advice....

  3. #3
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    The ASB's rules are clear. I can appreciate your frustration but it is hardly the banks fault. A large bureaucracy can't automate if it has to factor in every clients individual position. If you keep the rules simple it is easy to understand. Normally I wouldn't argue for the large corporation but I guess I sometimes think people could just suck it up now and again.

    https://www.nzx.com/services/market-...-a-participant

    Looks like for online your stuck with ASB or FNZC (which I assume used to be ANZ Securities) in NZ.

    Peat's suggestion could be the way to go. I have never fully understood CFD's. Here is a definition from google.

    A CFD is a leveraged 'derivative' financial product. CFDs are derivatives because their value is derived from the value of another asset (for example, a share, commodity or market index). When you trade CFDs, you take a position on the change in value of the underlying asset over time.

    I have always worried that whoever is running the book may not be able to pay up in the event of a crisis.
    Last edited by Aaron; 15-04-2019 at 08:30 AM.

  4. #4
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    Sorry about the negativity this morning Robomo.

    Talking about ASB Securities has anyone got the hang of them deducting 33% NZRWT from your Australian(& overseas) dividends. I assume this is only where you use a margin lending account and ASB holds the securities on your behalf. Didn't really appreciate it until they deducted the NZRWT from my bank account to cover the tax on a Newcrest dividend that was part of a DRP. It must be a lot of buggerising about for my piddly little dividends.

  5. #5
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    Quote Originally Posted by Aaron View Post
    Sorry about the negativity this morning Robomo.

    Talking about ASB Securities has anyone got the hang of them deducting 33% NZRWT from your Australian(& overseas) dividends. I assume this is only where you use a margin lending account and ASB holds the securities on your behalf. Didn't really appreciate it until they deducted the NZRWT from my bank account to cover the tax on a Newcrest dividend that was part of a DRP. It must be a lot of buggerising about for my piddly little dividends.
    Yes, they recently started doing that. I presume tax is deducted by ASBsec only when the dividend is not taxed by Australia (this happens when majority of income/profit from the operations of the company is outside Australia).

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