Is my stockbroker ripping me off?

[janeymc]

My broker has told me that the average purchase price includes their % and that this is why it is near or at the top.

It does explain things to me. I find it strange if not weird that thye would include this in a price and not as an extra line item. E.G. commision for purchase of shares or something like that.

They also provided me with a graph of share prices during the day and these prices also included their commission. I find it unusuail as I know that different people pay different commissions.

there you go.

I posted this response before Brendan but it appears to have not made it onto the board.

thanks all for your time and feedback. IT is much apreciated.

Brendan this is a fantastic site. Would you not go world wide with it and make some money. Float it and I'll invest.

Janeymc

 

[mercman]

MOB has replied as a true professional, and I do not wish to cast aspersions against him. His profession is been embroiled in a 'wake up call'. How many more will there be? In fact how many will meet the Public Domain ?

However, in the past 5-7 years Joe Public has become taken over by the boys in Suits. The legal profession in this country are very simply - money grabbers. Sorry MOB, but this is the way it is. I use the legal eagles very frequently and most times I have to barter my fees - sounds very professional doesn't it - and times I have not / forgotten to barter I have been ripped off by the same firm or to be told that they are unable to place an estimate on fees.

I could write a book on inadequacies by the legal profession, including madness which the Law Society will not act upon.

And another book on Banks and another on Stockbrokers, where this story commenced first. I trade shares daily and I refuse to use an Irish Broker. The best is one of the on-line brokers, selftrade.co.uk or the likes. For US markets there are a heap of them

 

[PMU]

My broker has told me that the average purchase price includes their % and that this is why it is near or at the top.

I find it strange if not weird that thye would include this in a price and not as an extra line item. E.G. commision for purchase of shares or something like that.

Janeymc

Why didn’t your stockbroker tell you the fee structure and how it was applied before you opened the account? They are legally obliged to do this.

Also, the FSRA recently issued a publication ‘Cost survey - stockbrokers fees and charges’. This seems to have disappeared off the ifsra.ie web site but nowhere do I see on my copy a note that any stockbroker charges their fee as part of the spread.

[FONT=&quot]Also if the fee is not distinguished from the price how can you correctly make a CGT return on disposal of shares? You need to remove the acquisition and disposal costs to calculate correctly your CGT liability. [/FONT]

 

[ClubMan]

Also, the FSRA recently issued a publication ‘Cost survey - stockbrokers fees and charges’. This seems to have disappeared off the ifsra.ie web site but nowhere do I see on my copy a note that any stockbroker charges their fee as part of the spread.

You mean this?

cost survey stockbrokers fees and charges

Found it via Google.

Update: oh - it's telling me that it's a corrupted PDF but if you use Google you can still fine other traces of this survey.

 

[markowitzman]

why would you use a stockbroker rather than a direct low cost broker online?
As previously mentioned limit order would solve this. Some of the online brokers use trade triggers where one can set the scenarios for a buy/ sell to be triggered.

 

[room305]

[FONT=&quot]Also if the fee is not distinguished from the price how can you correctly make a CGT return on disposal of shares? You need to remove the acquisition and disposal costs to calculate correctly your CGT liability. [/FONT]

This is a fairly important point and I wonder if the broker is trying to cover themselves? It would seem to me that the stockbroker should quote the two separately (I know mine does) and would be inclined to write to the financial regulator about the matter.