The JSE and finance forum for South Africa
General Category => Off topic => Topic started by: MrMafia on September 22, 2014, 11:38:49 am
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Hey all,
So I took the plunge and bought real shares. Finally I'm in the market, and probably stand to lose a lot as a beginner :) but live and learn I guess... At least I have put in what I can afford.
Anyway just a quick query, maybe something I've missed or did not read in the fine print somewhere...
On FNB Share Investor a couple days ago I went in at 54.89 on SHF. The buy-in was confirmed at this price and I have the SMS/Email etc... to show it.
But today it says on my portfolio that purchase price is 55.44?
Is this maybe including all the fees? Hope this isn't a real newbie question... :( It does say that it takes 5 days "for the trade to settle". And that I will be SMS'd every step of the way... but this didn't seem to occur so I doubt it is that.
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I contacted the bank and apparently the broker fees gets added to the "what I spent" limit. Which is nice to have as an accurate calculation I guess.
So that adds up then...
The guy on the phone also added that the "best price" rather than the "limit" option could have factored, but I think mine was confirmed at 54.89 based on the SMS and email. Because I don't think SHF went above R55 on the 19th anyway.
So at 340 shares (18.8k) the fees bolted it up by nearly 54 cents a share. Which means the trade would have cost me R184-00. Which is roughly 1%.
So lets compare:
Share Investor customers are charged an account fee of R49 per month with the following charges per trade:
Brokerage of 0.6% (excl. VAT) or a minimum of R80 (excl. VAT)
Investor protection levy (IPL) of 0.0002% (excl. VAT) of capital investment
STRATE fee of 0.005459% with a minimum of R10.95 and a maximum of R54.59 (all excl. VAT)
Securities Transfer Tax (STT) of 0.25% on the capital investment. This charge applies only to BUY transactions.
0.6% * 18662.6 = R111.98 (Exceeds minimum Brokerage Fee)
0.0002% * 18662.6 = R0.04 cents
0.005459 * 18662.6 = R1.02
0.25% * 18662.6 = R46.65
=R159.69 + 14% VAT = R22.35
=182.04 (Close to R184 but I rounded off a lot...)
All in the learning experience :) Good for other new entries in the market to know...
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I would be interested to know if other trading platforms you guys use offer better rates? Not that I know whether this is bad or not, but still interesting to compare.
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What's also just occurred to me is that I will be charged that fee again when I sell, except the 0.25% which only applies to buy orders.
Which means when you buy in, depending on how much you spend, you are already down a significant % before you start to make a profit. I'm not sure if that discourages anyone else...
Over and above that is of course the tax if I trade rather than invest long term. With the first 30k being tax free I believe.
http://www.sars.gov.za/AllDocs/OpsDocs/Guides/LAPD-IT-G11%20-%20Tax%20Guide%20for%20Share%20Owners%20-%20External%20Guide.pdf
It's a lot to take in at a beginner level :)
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I'm using ABSA, R800 a year and 0.4% but if you trade 5 times it's waived. Minimum charge of R120, so trades should be R30k each. I'm very closely watching this: https://www.easyequities.co.za/
No monthly fee, no minimum fee and only 0.25%. If they're any good I'll switch when they open.