Very small share parcel buys & sells on NZX

[blackcap]

Maybe, instead of directing your obvious frustration and bitterness towards us “wailing new entrant” Sharesies investors, you should direct it at NZX/your broker. Oh, and just so you know, trading aside, we are “serious tax paying investors” even if we don’t have buckets of money like you. If you are one of those who believe investing is only for the wealthy, think again. It’s 2020 buddy. Such an arrogant post.

Well said justakiwi, we all have been starting out at one point. I remember the frustration when I was a teen/early 20's at not being able to access capital markets because you realistically needed $1000 to make a trade. Sharesies would have been a gift. Also sharesies is helping educate so many more people about capital markets. Long may it continue.

[bottomfeeder]

Can't see why brokers can't set a two tier, brokerage formula so that if you only trade an odd lot portion, you either pay none or a small amount of brokerage, with the balance charged when the order is fulfilled. I don't begrudge sharesies, and I think its here to stay, and others will soon join. I don't care if I only get 2 shares fulfilled, but if they are dollar shares, I am annoyed that I have to pay $30 brokerage.

[Baa_Baa]

Can't see why brokers can't set a two tier, brokerage formula so that if you only trade an odd lot portion, you either pay none or a small amount of brokerage, with the balance charged when the order is fulfilled. I don't begrudge sharesies, and I think its here to stay, and others will soon join. I don't care if I only get 2 shares fulfilled, but if they are dollar shares, I am annoyed that I have to pay $30 brokerage.

Yeah agree completely, being charged the full broker fee for less than 1/4 of my bid fill was really annoying, and being then abandoned in the market. Anyway I got my fill in the end but only because I met the market to close out the trade.

I don’t really have a problem with the Sharsies effect or the rights of their customers to place tiny orders, my beef is the online brokers taking their full fees on a small % of the bid or ask being filled. I’ve solved the admin of multiple tiny trades by entering only the bulk trade from the contract note.

[peat]

I got my fill in the end but only because I met the market to close out the trade.

I think the answer is right there. If you want to buy 5000 shares then look at the depth and see what price you have to pay to get them all. It may well be higher than if you only want 500. Even without the Sharesies effect this is usually the case.
I agree its annoying but meh its the modern world where everything is divided a million times and people have a million different views.

[dodgy]

Maybe, instead of directing your obvious frustration and bitterness towards us “wailing new entrant” Sharesies investors, you should direct it at NZX/your broker. Oh, and just so you know, trading aside, we are “serious tax paying investors” even if we don’t have buckets of money like you. If you are one of those who believe investing is only for the wealthy, think again. It’s 2020 buddy. Such an arrogant post.

justakiwi,
instead of emotive terms such as "bitterness" and the assumption of class / wealth try and read the whole post. Of course I expected the reaction I got when choosing my original adjectives and had previously bought this problem to the attention of a broker and the NZX. If you can make money , pay tax, prosper, and enjoy accounting I can only say very best of luck. Despite common belief after many years involvement , I will confirm that luck plays the strongest hand in this endevour. A bit like horse racing. If by chance you do prosper and accumulate you will eventually see the downside when wishing to trade larger more economic parcels. Hence my comment re if desired a minimum parcel should be able to be stipulated by the seller thereby covering his/her trade fee expense.
Yes , we both agree on 1 thing, it is 2020 and corona aside it will be the best year for some time - past and into the immediate future.
Regards,
-dodgy

[bottomfeeder]

I subsequently sold the THL balance at 287 so covered the brokerage, of the odd lot trade. Direct actually reversed the brokerage on the subsequent sale. So I appreciate Direct coming to the party. I am not blaming Direct. They are like the proverbial meat in the sandwich. But still they are going to have to move with the times and move to two tier trading. Unless the NZX moves odd lot trading to a separate board somehow. Sharesies can buy and sell their own shares. I did write to the NZX to complain, but I got back a real patronising reply, blah blah blah.

[dodgy]

I subsequently sold the THL balance at 287 so covered the brokerage, of the odd lot trade. Direct actually reversed the brokerage on the subsequent sale. So I appreciate Direct coming to the party. I am not blaming Direct. They are like the proverbial meat in the sandwich. But still they are going to have to move with the times and move to two tier trading. Unless the NZX moves odd lot trading to a separate board somehow. Sharesies can buy and sell their own shares. I did write to the NZX to complain, but I got back a real patronising reply, blah blah blah.

Hi bottomfeeder,
Similar experience with NZX . My question for you (I agree with your sentiments), is whether you think a minimum trade would do the job.
E.g.
I have 600 shares to sell/buy and wish to put a minimum initial trade parcel value of say 500 shares. This order typically would not fill until a seller/buyer comes along with an order equal to or greater than 500. It could be the sharesies agregator or any market participant.............but I would be happy knowing my brokerage risk/cost was accommodated and not ending up with less than the 500 bought/sold.
Thoughts??
Regards,
-dodgy

[bottomfeeder]

That might work. I am sitting there trying to buy 3000 CVT at 281. Some of the order was filled, but now sellers are at 300 but there are sharesies buyers at 288. Can't see anyone dropping to 281 at this stage. Will just have to wait. I suggested to Direct to lift the min brokerage to 35. But if the order is filled to less than $900, the brokerage should be free unless the order is altered or cancelled by me.

[dodgy]

That might work. I am sitting there trying to buy 3000 CVT at 281. Some of the order was filled, but now sellers are at 300 but there are sharesies buyers at 288. Can't see anyone dropping to 281 at this stage. Will just have to wait. I suggested to Direct to lift the min brokerage to 35. But if the order is filled to less than $900, the brokerage should be free unless the order is altered or cancelled by me.

bf
It used to work just fine in the States..
-d

[peetter]

Maybe the companies should move to percentage based fees. It's not like there is a dude calling the market in background to justify set minimum fee per trade.