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Brokarage fees.
kyt
#1 Posted : Monday, March 07, 2011 12:41:53 PM
Rank: Elder


Joined: 11/7/2007
Posts: 2,182
Is it me or is there anyone who feels the brokarage fees of 2% is way high? If you have 1.5m you will pay 30k, forget the 0.2% less, thats very small. Is there a way one can pay lower? Is there a way one can pay a flat fee a yr? How is it done in JSE, NYSE, etc?
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
Jamani
#2 Posted : Monday, March 07, 2011 12:45:21 PM
Rank: Elder


Joined: 9/12/2006
Posts: 1,554
kyt wrote:
Is it me or is there anyone who feels the brokarage fees of 2% is way high? If you have 1.5m you will pay 30k, forget the 0.2% less, thats very small. Is there a way one can pay lower? Is there a way one can pay a flat fee a yr? How is it done in JSE, NYSE, etc?


With 1.5M the brokerage fee is slightly less and buying online i think you pay less.
VituVingiSana
#3 Posted : Monday, March 07, 2011 12:56:04 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,097
Location: Nairobi
See the other thread I have... CMA & NSE charge way too much as well... Adds to the cost!

CMA is just as greedy as any broker. The NSE should encourage flat fee pricing but unlike the USA [NASDAQ + NYSE] they have a monopoly...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
The Merchant
#4 Posted : Monday, March 07, 2011 1:07:32 PM
Rank: Veteran


Joined: 5/24/2010
Posts: 846
Location: KENYA
Flat fee pricing would make it expensive for those investing little amounts. A percentage always works best I think. In forex one pays the spread between the bid and ask price so maybe a model based on this would work?
However like @VVs put it, the brokers also get crushed by NSE & CMA fees and that is where the problem begins. We are in the 1800s here guys.
annsal
#5 Posted : Monday, March 07, 2011 1:14:57 PM
Rank: Member


Joined: 12/18/2009
Posts: 316
Location: nairobi
@ the merchant - not forgetting the Cdsc charges.
God loves a Trier!
VituVingiSana
#6 Posted : Monday, March 07, 2011 1:24:01 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,097
Location: Nairobi
The Merchant wrote:
Flat fee pricing would make it expensive for those investing little amounts. A percentage always works best I think. In forex one pays the spread between the bid and ask price so maybe a model based on this would work?
However like @VVs put it, the brokers also get crushed by NSE & CMA fees and that is where the problem begins. We are in the 1800s here guys.
Not at all... There is an implied cost to the rest!

Why should someone buying 100,000 shares pay 1,000x what someone buying 100 shares?

The cost [time spent, etc] of the 100,000 share trade is not 1,000x the 100 share trade!

BTW, the minimum cost of a trade is already 100/-...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
The Merchant
#7 Posted : Monday, March 07, 2011 1:57:37 PM
Rank: Veteran


Joined: 5/24/2010
Posts: 846
Location: KENYA
Here is an example of the fee breakdown from a typical stock brokerage in the US:

Stock Price Over $2: $28 flat rate up to 999 shares, 3 cents per share over 999 shares.

Stock Price $2 and Under: 1.4% of principal trade with a minimum of $28 charged.

We fall in the later model with 2.1% fee and a min. of Kes 100. Do you think we should go this way? The more you invest the less the transaction fee percentagewise. However our market is still young. Lets not kill the brokers, they have little else income (no ledger fees, financial advisory fees etc and if so very minimal).
VituVingiSana
#8 Posted : Monday, March 07, 2011 2:06:24 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,097
Location: Nairobi
@themerchant - WTH? The brokers are BLOATED... We need online trading to REDUCE the dependence on 'people'... Some might say let's pay more to save jobs! I say BULLSHIT...

Let the efficient survive!

When I look for suppliers I look for price & service! This is a CARTEL...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
The Merchant
#9 Posted : Monday, March 07, 2011 2:12:58 PM
Rank: Veteran


Joined: 5/24/2010
Posts: 846
Location: KENYA
@VVS...I agree that online trading is the way to go. It won't erase the brokerage fees though. Plus it actually increses employment in terms of backup IT,Call Center etc.
Now lets revisit that commissions issue again...whats your take on the model Ive posted above. Even if we do online trading the brokers have to get paid. Ask online forex brokers, they make money per tarde from people like us they have never met and rack in millions. Efficiency, definitely a must, the commissions model...now thats the issue.
ARAPCHARLEE
#10 Posted : Sunday, May 24, 2020 4:28:37 AM
Rank: New-farer


Joined: 4/28/2019
Posts: 67
Location: Talai
Shares cost up as brokers charge 14pc VAT on fees

https://www.businessdail...WGHQ2MSgJpUn0Vg98lGwOcC8
obiero
#11 Posted : Sunday, May 24, 2020 4:49:53 AM
Rank: Elder


Joined: 6/23/2009
Posts: 12,767
Location: nairobi
ARAPCHARLEE wrote:
Shares cost up as brokers charge 14pc VAT on fees

https://www.businessdail...GHQ2MSgJpUn0Vg98lGwOcC8

Tabia mbovu
COOP 5,500 ABP12.6; HF 30,000 ABP 5.90; KCB 7,500 ABP 36; KQ 414,100 ABP 7.92
Ericsson
#12 Posted : Sunday, May 24, 2020 7:16:22 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,565
Location: NAIROBI
obiero wrote:
ARAPCHARLEE wrote:
Shares cost up as brokers charge 14pc VAT on fees

https://www.businessdail...GHQ2MSgJpUn0Vg98lGwOcC8

Tabia mbovu


Jubilee manifesto
Angelica _ann
#13 Posted : Sunday, May 24, 2020 10:16:12 AM
Rank: Elder


Joined: 12/7/2012
Posts: 11,600
Ericsson wrote:
obiero wrote:
ARAPCHARLEE wrote:
Shares cost up as brokers charge 14pc VAT on fees

https://www.businessdail...GHQ2MSgJpUn0Vg98lGwOcC8

Tabia mbovu


Jubilee manifesto


Taxing everything, then wasting the funds.
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
VituVingiSana
#14 Posted : Monday, May 25, 2020 2:01:12 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,097
Location: Nairobi
#WembeNiUleUle
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Monk
#15 Posted : Monday, May 25, 2020 12:05:16 PM
Rank: Member


Joined: 7/1/2009
Posts: 171
VituVingiSana wrote:
#WembeNiUleUle


Brokers getting desperate....

Genghis recommending a Sell for Safaricom at Ksh 30 yet the price has been ranging 27-30. Assuming ABP of 27, after deducting 4% commissions, why would an investor sell for that margin, unless they need the cash for an emergency?
Angelica _ann
#16 Posted : Monday, May 25, 2020 12:10:53 PM
Rank: Elder


Joined: 12/7/2012
Posts: 11,600
VituVingiSana wrote:
#WembeNiUreUre


Always makes my day, plus the tano tena song!!!smile smile smile
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
cyruskulei
#17 Posted : Tuesday, May 26, 2020 11:12:29 AM
Rank: Member


Joined: 3/9/2010
Posts: 257
Location: kenya
The Merchant wrote:
Flat fee pricing would make it expensive for those investing little amounts. A percentage always works best I think. In forex one pays the spread between the bid and ask price so maybe a model based on this would work?
However like @VVs put it, the brokers also get crushed by NSE & CMA fees and that is where the problem begins. We are in the 1800s here guys.



This is a good number of retail investors to form an association of minority investor in nse. Then we demand we be given representaion in all boards of listed firms as minority investors. If anyone supports this line of thinking you may .....
Work hard at your job and you can make a living. Work hard on yourself and you can make a fortune.

Sufficiently Philanga....thropic
#18 Posted : Tuesday, May 26, 2020 11:33:52 AM
Rank: Elder


Joined: 9/23/2010
Posts: 2,091
Location: Sundowner,Amboseli
Angelica _ann wrote:
VituVingiSana wrote:
#WembeNiUreUre


Always makes my day, plus the tano tena song!!!smile smile smile

Wanjohi Ushuru must be quite happy that his reign saw the NSE20 slide below 2,000pts. More like a narcissist.
Markets
Impunity
#19 Posted : Tuesday, May 26, 2020 6:22:07 PM
Rank: Elder


Joined: 3/2/2009
Posts: 26,252
Location: Masada
Sufficiently Philanga....thropic wrote:
Angelica _ann wrote:
VituVingiSana wrote:
#WembeNiUreUre


Always makes my day, plus the tano tena song!!!smile smile smile

Wanjohi Ushuru must be quite happy that his reign saw the NSE20 slide below 2,000pts. More like a narcissist.


It's corona please
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

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