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General Category => Shares => Topic started by: Patrick on April 09, 2018, 11:03:49 am

Title: ABSA stockbrokers becoming more expensive
Post by: Patrick on April 09, 2018, 11:03:49 am
They've created an inactivity fee of R35 for every 60 days you don't transact. As someone who funds their TFSA in a lump sum this won't do for me.

They've done the same with their ETF only account, and for their regular account they now require you to trade 3 times per month before they waive the monthly fee. That one used to be trade 5 times a year and pay no fees, then it was no fees AFTER your 5th trade per year, now it's 3 times per month.

I don't like companies that behave this way, I find it very dishonest. The least they could have done would be to grandfather the rule for current users and only apply it to newcomers. As such I have already sent in the form to move my TFSA to Easy Equities, goodbye ABSA.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Patrick on April 09, 2018, 11:18:29 am
So just tweeted that my moving forms to EE are in and that I'm happy that they've never shifted goalposts. Their CEO replied that they never will. It's in writing now :)
Title: Re: ABSA stockbrokers becoming more expensive
Post by: PlatinumWealth.co.za on April 09, 2018, 11:23:47 am
EasyE is awesome!
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Mr_Dividend on April 09, 2018, 11:32:00 am
Excellent - For me, I do trade with my TFSA - so will leave it as is for the moment.  My main account has 23 counters - will just find out how much it will cost to move to EE. Thinking it might take 3 - 4 years or so to recoup the cash(depending on how much they increase the rates). Might do a bit of Tax/loss/resetting - offsetting some fees.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Patrick on April 09, 2018, 11:38:41 am
I was under the impression that moves are free. You'll actually transfer positions to EE not cash.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Mr_Dividend on April 09, 2018, 11:46:30 am
Talking about the standard account.  As you say the TFSA is  free to move.

For those that are interested is R171 per counter - going up to R200 in May.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Patrick on April 10, 2018, 07:45:43 am
Seems I was wrong, ABSA now wants to charge me R172.50 per ETF to move. Quite a cheek considering my motivation for moving is them changing their terms compared to what I signed up for.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: gcr on April 10, 2018, 10:21:18 am
Seems I was wrong, ABSA now wants to charge me R172.50 per ETF to move. Quite a cheek considering my motivation for moving is them changing their terms compared to what I signed up for.
I think you may have a case against them if the document you signed was silent on the matter of transfer charges and now they have instituted such rules without getting your consent. Banks are notorious for invoking terms and conditions and charges without engaging their clients - my bank sends me sms' each month advising me of my current outstanding balance per card - I have written to them instructing them not to follow this practice with me but they neither care or heed my instructions and still persist. Now I will engage the CEO with the hope that he has more influence in stopping this practice where clients have issued an instruction
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Patrick on April 10, 2018, 10:28:59 am
Yeah GCR I'm going to try fight it. The terms they changed wasn't the application of the moving fee, as when I signed up moving wasn't possible, but it's the application of the inactivity fee which was only added on the 1st of April 2018. I'm going to request they either drop that or allow free moves to other providers. Failing that I'll take the fight to twitter.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Hamster on April 10, 2018, 06:00:51 pm
Well, was cashing out my ETF only portfolio anyway. Thought I'd leave a tiny bit to keep it going but they can go ahead and just close it after I'm done. Luckily (and this was close) I never moved my TFSA to them from EE. It'll have to stay there for now.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Patrick on April 11, 2018, 09:38:00 am
So after my twitter ranting I got a call from one of their consultants. Basically he was saying that these things aren't profitable so they need to find ways to make people trade more.

I told him I could totally see how it wasn't profitable, the numbers are too small, but the TFSA could lead people into regular investment accounts which may have more profit. What they've effectively done now (and previously with their regular account) by repeatedly moving the goalposts is broken the trust I have in them.

What's to stop them in future from making it a R500 inactivity fee, or R10 000 inactivity fee and then a R50 000 moving fee. They've shown that they will do whatever they like to ensure higher profit, and as such I will now advise people against using their services.

I could also bypass the inactivity fee by selling and buying back a single ETF and it would cost me just R0.16 every 60 days, but without trust I will rather pay the R172.50 for my one ETF and move to EE who seem to be run by humans and not financial calculators.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: stealthywealth.co.za on April 11, 2018, 12:37:02 pm
Look what you've done now Patrick :P

Title: Re: ABSA stockbrokers becoming more expensive
Post by: Patrick on April 11, 2018, 03:54:25 pm
Not my fault, TFSAs were earning ABSA just R66/year in fees if fully funded. Now they'll get at least R172.50 per person, so I've effectively tripled their income. The share should have gone through the roof  :D
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Hamster on April 12, 2018, 10:16:45 am
They could implement more user-friendly functionality like, oh I dunno, debit orders with automatic At Market trades. That would've given EE a run for their money.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Duan on April 21, 2018, 08:54:28 am
Talking about the standard account.  As you say the TFSA is  free to move.

For those that are interested is R171 per counter - going up to R200 in May.

Hi, can you please clarify if moving a TFSA is free? My TFSA is currently with absa as well and I'll definitely be moving to EasyE, but can only do so next month (May)

I'm really upset with absa still over their new fee's and for me to pay R200 per ETF (i'm still a student) is ridiculous .
The only thing they said on twitter to me was ''were sorry to see you go'' , yeah whatever. I opened my TFSA with EE this week, waiting for my docs to be ficad.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: willemm on April 21, 2018, 10:19:34 am
Talking about the standard account.  As you say the TFSA is  free to move.

For those that are interested is R171 per counter - going up to R200 in May.

Hi, can you please clarify if moving a TFSA is free? My TFSA is currently with absa as well and I'll definitely be moving to EasyE, but can only do so next month (May)

I'm really upset with absa still over their new fee's and for me to pay R200 per ETF (i'm still a student) is ridiculous .
The only thing they said on twitter to me was ''were sorry to see you go'' , yeah whatever. I opened my TFSA with EE this week, waiting for my docs to be ficad.

I feel your pain. Same boat with my wife's and daughter's TFSA. The buggers. Busy moving to EE also.

I think Patrick mentioned a R172,50 cost to transfer per ETF holding. So hopefully you just own one type of ETF :)

Probably best to phone them and get the details for confirmation.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Duan on April 21, 2018, 10:51:01 am
Talking about the standard account.  As you say the TFSA is  free to move.

For those that are interested is R171 per counter - going up to R200 in May.

Hi, can you please clarify if moving a TFSA is free? My TFSA is currently with absa as well and I'll definitely be moving to EasyE, but can only do so next month (May)

I'm really upset with absa still over their new fee's and for me to pay R200 per ETF (i'm still a student) is ridiculous .
The only thing they said on twitter to me was ''were sorry to see you go'' , yeah whatever. I opened my TFSA with EE this week, waiting for my docs to be ficad.

I feel your pain. Same boat with my wife's and daughter's TFSA. The buggers. Busy moving to EE also.

I think Patrick mentioned a R172,50 cost to transfer per ETF holding. So hopefully you just own one type of ETF :)

Probably best to phone them and get the details for confirmation.

See that's the problem, I currently have 4 ETF's (part of my diversification strategy)  , can't wait to get process over and done with.

I will definitely phone them but is there any costs involved from EE side as well?
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Hamster on April 22, 2018, 08:43:45 am
Talking about the standard account.  As you say the TFSA is  free to move.

For those that are interested is R171 per counter - going up to R200 in May.

Hi, can you please clarify if moving a TFSA is free? My TFSA is currently with absa as well and I'll definitely be moving to EasyE, but can only do so next month (May)

I'm really upset with absa still over their new fee's and for me to pay R200 per ETF (i'm still a student) is ridiculous .
The only thing they said on twitter to me was ''were sorry to see you go'' , yeah whatever. I opened my TFSA with EE this week, waiting for my docs to be ficad.

A couple of guys moved from FNB to EE and it was free. The only cost that might be involved is if they do not transfer the shares between the platforms and require you to sell it and move the money (transaction fees).
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Duan on April 22, 2018, 04:12:34 pm
Talking about the standard account.  As you say the TFSA is  free to move.

For those that are interested is R171 per counter - going up to R200 in May.

Hi, can you please clarify if moving a TFSA is free? My TFSA is currently with absa as well and I'll definitely be moving to EasyE, but can only do so next month (May)

I'm really upset with absa still over their new fee's and for me to pay R200 per ETF (i'm still a student) is ridiculous .
The only thing they said on twitter to me was ''were sorry to see you go'' , yeah whatever. I opened my TFSA with EE this week, waiting for my docs to be ficad.

A couple of guys moved from FNB to EE and it was free. The only cost that might be involved is if they do not transfer the shares between the platforms and require you to sell it and move the money (transaction fees).

That would be a huge problem, that means that I would lose all my contribution limits? Meaning I would have to sell, transfer the money out of the TFSA in to my bank account and then into EE.

I personally think its just absa that wants to be typical and charge a person R173 per ETF, if FNB can do free transfers why can't absa?

But i'll just make sure of everything before I start this process, also if they charge R173 per ETF , I want to pay them directly with a EFT, they can't sell units or use my cash component in my TFSA in order to cover costs because that means I will lose contribution limits as well.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: gcr on April 22, 2018, 11:21:51 pm
On March 3, 2018 Martin Hesse wrote an article for IOL's Personal Finance section on the ability to move TFSA's from one provider to another and it is apparent that there are no transfer fees to be levied and the issue around selling ETF and then moving the cash is covered.
Suggest you read the article and any others before making any decision to move from one provider to another
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Hamster on April 23, 2018, 06:21:58 am
That would be a huge problem, that means that I would lose all my contribution limits? Meaning I would have to sell, transfer the money out of the TFSA in to my bank account and then into EE.

No man, they/you sell the ETFs within and transfer the cash from one TFSA/BDA to another. You don't cash out to a bank account.

Cash is the common currency/denominator between all the TFSAs. Example, if I had a unit trust TFSA from FNB and wanted to move it to EE which only uses ETFs there will be no other way other than to sell the unit trust and use the cash to buy ETFs - you cannot transfer the unit trusts. I don't know what would happen if you transfer ETFs from one provider to another though, maybe you can do a normal securities transfer or treasury took the one-solution-fits-all approach and you transfer cash.

Either way, you are transferring your TFSA between providers, regardless of what is in it, so no contribution limits will be affected.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Duan on April 23, 2018, 10:40:18 am
That would be a huge problem, that means that I would lose all my contribution limits? Meaning I would have to sell, transfer the money out of the TFSA in to my bank account and then into EE.

No man, they/you sell the ETFs within and transfer the cash from one TFSA/BDA to another. You don't cash out to a bank account.

Cash is the common currency/denominator between all the TFSAs. Example, if I had a unit trust TFSA from FNB and wanted to move it to EE which only uses ETFs there will be no other way other than to sell the unit trust and use the cash to buy ETFs - you cannot transfer the unit trusts. I don't know what would happen if you transfer ETFs from one provider to another though, maybe you can do a normal securities transfer or treasury took the one-solution-fits-all approach and you transfer cash.

Either way, you are transferring your TFSA between providers, regardless of what is in it, so no contribution limits will be affected.

Ahh I see, Sorry i didn't quite understand the whole process on how they do it. Thank you for the clarification.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Zilch on May 09, 2018, 04:25:43 pm
I was/am also very disipointed when ABSA announced their fee adjustment.

For those doing an once of lump sum into your TFSA. ABSA waives the inactivity fee of your TFSA once your full yearly allocation has been reach.

See attached or go to your ABSA stockbroker account and click on “fee adjustment notification” (top-left hand corner).


Ps. Long time lurker. Thanks to everyone’s contribution to the site.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Patrick on May 10, 2018, 08:24:20 am
Thanks for the info, it's good to see they relented on the inactivity fee once you reach your R33k cap. That works for R33k lump sum investors, but it's still no good for monthly investors as the R15 minimum fee means they will be paying 0.55% in fees.

I also see the SMART account now has an annual fee of R1035. That's utter madness!

Oh and welcome :)
Title: Re: ABSA stockbrokers becoming more expensive
Post by: RayRay on May 10, 2018, 09:09:18 am

For those doing an once of lump sum into your TFSA. ABSA waives the inactivity fee of your TFSA once your full yearly allocation has been reach.


This makes me very happy  :)

Thanks Zilch, welcome
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Imran on May 19, 2019, 08:10:19 pm
Hi all, I currently have two stock brokarage accounts, one with Standard Online Share Trading (personal protfolio) and one with ABSA Stock Brokers (TFSA, signed up before they started all there shenanigans  :frustrated:). I'm looking to consolidate these two accounts with one provider, Probably Easy Equities.
For all those that have moved over how has the customer service been with EE? Have you experienced any website downtime etc.?
Also I know a few people have complained about execution prices not matching market prices, has any one experieced this?
Title: Re: ABSA stockbrokers becoming more expensive
Post by: WealthSmith_1 on May 20, 2019, 07:03:26 am
EasyEquities is a market maker so they'll NEVER execute your trades at the market price, I'm talking from experience. They do have down times from time to time, since they don't really have a platform, these can be insignificant, unless you day trade.

Can you place stop losses on SBK OST?
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Tovad on May 20, 2019, 10:26:57 am
Can you place stop losses on SBK OST?

Yes you can and what I like is that you can put in a buy/sell order with a validity of up to one month
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Mr_Dividend on May 20, 2019, 10:58:36 am
I actually have live pricing on two accounts (absa and GT247) and when initiating a trade on EE always check on the price - and they have always been spot on.

They have had a bit of downtime lately, on less liquid stock you often need to enter a trade multiple times to get your required amount - changes per counter. For instance, right now I can only buy around R510 worth of SSK, but can spend just over a R1mill on ABH.

So it has some quirks, but fine for an investor - with no minimums, you can really do multiple buys/sells.
Title: Re: ABSA stockbrokers becoming more expensive
Post by: DieLyn on November 02, 2023, 12:42:07 pm
So just tweeted that my moving forms to EE are in and that I'm happy that they've never shifted goalposts. Their CEO replied that they never will. It's in writing now :)

Apologies for the necro, but this is appropriate. The ghosts of internet past coming to bite them.

EE have announced they charge a platform fee if you don't deposit every month. Talk about "not moving the goalposts"
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Bread on November 04, 2023, 06:35:27 pm
Wow. Can't say I'm at all impressed with Easy Equities. They charge 0.35 which is only 0.05 cheaper than ABSA but they charge 3.50% less than prime on cash balances, a cash management fee of 1.27% and I have to pay for live prices. No thanks. Better to stay with ABSA, methinks. And they're not even a broker. Can someone please explain what all the hype is about?
Title: Re: ABSA stockbrokers becoming more expensive
Post by: Patrick on November 06, 2023, 12:50:27 am
Yeah what can I say, I'm not thrilled. I've heard there's another announcement coming next week with an update, so let's see what that brings.

And as an FYI, if you're not worried about owning South African stocks, many foreign brokers have no admin fees and very low transaction fees.