Patrick does that allow you to trade on that particular exchange, say the London Stock Exchange? Or are you buying some sort of eft of that exchange?
It allows you to trade directly on the offshore exchange.
Jis that 20$ minimum is going to be a killer (for me). I was hoping to invest ~R10k (~700$) pm direct offshore, but that would mean my minimum cost is something like 2.5-3%!! Hectic
It looks like their cost structure is almost identical to the STD Bank WebTrader account.
Ai.
Yeah, you need to trade big to make it work. $5000 is a 0.4% fee. For the US it's not a precentage, so even if you trade a $100 000 it's still only $20, which is 0.02%. Really cheap. I think the way to use it, is to move a chunk of funds at once, following a local sale or something like that. You have R1m a year to play with before needing SARS approval.
It's not a great solution for monthly offshore investing, unless you play in the big leagues. I won't be happy with the solution unless they drop the custodian fees to zero.
The other thing I'm waiting for is a competitor to the DBX trackers at a much lower TER. All the other ABSA funds are around 0.10% to 0.15%. If they could bring international trackers in at anywhere near that I would throw money at it, as would many other people I think.
Edit, the $20 minimum is based on the $0.03 per share, so if you buy 1000 $0.01 penny shares, you'll pay $10 for the shares, and $30 for the transaction! Rather buy expensive shares then!
