Loading...
See More

Stockbroker fees

Nov 01 2012 07:35

Related Articles

Investing: a reader's advice

Advice for young investors

Investment: where do I start?

Tried and true investment basics

Why should I diversify my portfolio?

Am I on the right investment track?

 
A Fin24 user writes:

I have a portfolio of shares with a stockbroker. The stockbroker charges a monthly fee (several hundred rands) for non-discretionary advice and support services which I do not believe I am receiving.

The equities are held in a "dematerialised" (electronic) nominee account. Is there some way that I can take over these equities and "warehouse" them in my own name, thereby reducing or eliminating my monthly expense for a service I am not receiving?

I tried asking my bank but was routed to a financial adviser who wanted me to sell the equities and put the money in a unit trust! Lunacy. Other ideas, please.

Jamey Lipschitz, regional manager - investment advisory services at Sanlam Private Investments responds:

As I am not entirely clear on the user's situation, I have made certain assumptions. He is also welcome to call me and discuss his specific requirements.

As a first step, I would suggest asking his stockbroker to explain what services he is paying for. Sanlam Private Investments charges an annual safe custody fee of R600 p a to operate a stockbroking account.

Generally non-discretionary stockbroking accounts do not have advice fees unless they are PCS (advisory service without full discretion).

In this case, the client is able to phone the stockbroker and discuss stocks, and the stockbroker should phone his client with investment ideas.

The dematerialised equities are placed in a nominee account to ensure separation of assets from the stockbroking firm's balance sheet, which protects the client.

Placing money in a unit trust does have certain tax advantages and there is the benefit of an investment manager making investment decisions; however, the investor would incur an annual management fee.

 - Fin24

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

* Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.




 

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

investing  |  money clinic
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
5 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...