Originally Posted by
Roger
Agree 100% with the sentiment in this thread. Lets take the minimum brokerage on a $15,000 share transaction at ANZ securities as an example seeing as many on here use them. It's $29.90 including stock exchange trade fee.
So if one is buying $15,000 of a fixed interest security on the DX market and its done online just like a share purchase why on earth should it cost 15,000 x 0.5% + 5.50 trade fee = $80.50 for what is ostensibly exactly the same service processed in exactly the same way. This is blatant oligopolistic pricing by the brokers and adds insult to injury when interest rates on bonds are at record lows. Disc: Don't own any bonds as I strongly dislike being ripped off with grossly excessive brokerage and dividend yield on quality stocks are vastly higher than bonds.
Buy REIT's instead. GMT and ARG still 5% net and are PIE's so investors on a 33% tax rate are getting an effective gross return of 7.5%...can't see any quality company issuing bonds at 7.5% lately...
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