Share Forum - Discuss JSE shares and join the Investor Challenge

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... 

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