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Brokarage fees.
Rank: Elder Joined: 11/7/2007 Posts: 2,182
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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.
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Rank: Elder Joined: 9/12/2006 Posts: 1,554
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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.
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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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
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Rank: Veteran Joined: 5/24/2010 Posts: 846 Location: KENYA
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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.
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Rank: Member Joined: 12/18/2009 Posts: 316 Location: nairobi
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@ the merchant - not forgetting the Cdsc charges. God loves a Trier!
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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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
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Rank: Veteran Joined: 5/24/2010 Posts: 846 Location: KENYA
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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).
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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@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
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Rank: Veteran Joined: 5/24/2010 Posts: 846 Location: KENYA
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@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.
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Rank: New-farer Joined: 4/28/2019 Posts: 88 Location: Talai
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Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
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Tabia mbovu
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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Jubilee manifesto Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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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
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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#WembeNiUleUle Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 7/1/2009 Posts: 256
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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?
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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VituVingiSana wrote:#WembeNiUreUre Always makes my day, plus the tano tena song!!!  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Member Joined: 3/9/2010 Posts: 320 Location: kenya
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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.
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Rank: Elder Joined: 9/23/2010 Posts: 2,220 Location: Sundowner,Amboseli
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Angelica _ann wrote:VituVingiSana wrote:#WembeNiUreUre Always makes my day, plus the tano tena song!!! Wanjohi Ushuru must be quite happy that his reign saw the NSE20 slide below 2,000pts. More like a narcissist. @SufficientlyP
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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Sufficiently Philanga....thropic wrote:Angelica _ann wrote:VituVingiSana wrote:#WembeNiUreUre Always makes my day, plus the tano tena song!!! 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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