High Brokerage Fees
I had my first stock investment account with TA Securities. In my hometown, there are not many brokerage firms, just TA, Kenanga and OSK only. Recently, I just know that actually banks are doing stock trading too.
TA Securities had the highest brokerage fees among all the brokerage firms and banks in my hometown. Minimum of Rm28 or 0.6% per transaction. Other brokerage firms or banks are offering minimum of RM12 or 0.42% per transaction. The problem here is I am a new and small buyer. Therefore, it might be seldom that I will exceed the minimum.
Due to the higher brokerage fees, I am switching to Maybank trading online which have minimum RM12 or 0.42 per transaction. So far I am used to the platform after a few call to the reminser for help. I find that trading online is much easier and comfortable instead of calling the reminser all the time. We need keep on learning and adapt ourselves to new things.
Higher brokerage fees effect your return of investment. Just right after you buy the stock, you are in losing situation. The higher brokerage fees imply bigger loss. Let say you buy a 50 sen stock and buying 1 unit from different brokerage firms.
Calculation :
Ta Securities : RM500 times 0.6% equals to RM3. Because of the brokerage fee do not
exceed the minimum amount, you pay RM28 for minimum.
RM500 + RM28 (brokerage fee) + RM 1 (stamp duty) + RM 0.42(clearing
fee) = RM 529.42
Maybank2u : RM500 times 0.42% equals to RM2.1. Because of the brokerage fee do not
exceed the minimum amount, you pay RM12 for minimum.
RM500 + RM12 (brokerage fee) + RM 1 (stamp duty) + RM 0.34 (clearing
fee) = RM 513.34
As you can see, the different is RM16.08. How about when you sold? Same thing happen again, another RM16 charged. Total of RM32.16 different from one complete buy and sold. I found it the different is quite large if you make several trades. Higher brokerage fees definitely will affect your return in long run.
Jupiter Online offers the lowest brokerage rate. Check out https://www.jupiteronline.com.my/jssbecos/Offer.asp
[Reply]
i just know tht. thanks for sharing
[Reply]
Mrcoolku Reply:
May 1st, 2010 at 7:45 am
It is great the you learn from my sharing.
[Reply]