Sharewatch change to ODL Securities

OnDeBanks

Frequent Poster
Messages
29
Recieved from Saxo today.

IMPORTANT NOTIFICATION REGARDING YOUR SHAREWATCH ACCOUNT
Dear *,
We have recently received your application to open a Saxo Capital Markets UK Limited (SCML) trading account which is currently being processed.
We are aware that one of the main reasons that you wish to open an SCML trading account is to transfer your current cash and equity holdings from your existing broker Forex Capital Markets Limited (FXCM) following their intention to implement an inactivity fee.
Currently SCML does not charge an inactivity fee, however our parent company Saxo Bank A/S will be implementing an activity fee which will to come in to effect from February 2013. As a wholly owned subsidiary of Saxo Bank A/S, it is likely that SCML will implement a similar fee in 2013 and further details will be communicated once a formal decision has been made in accordance with our General Business Terms.
To ensure the fair treatment of our clients we would like to take this opportunity to notify you that SCML is likely to implement an inactivity fee during the first quarter of 2013 and therefore provide you with sufficient time before transferring any cash and / or securities from your current broker or if you believe that an SCML trading account is no longer appropriate for you to provide you with sufficient time to consider other alternative brokerage arrangements.
In view of the above, I would be grateful if you could reply to this email and confirm if you would like to SCML to continue to process your application for a trading account. If we do not receive any reply from you we will place your application on hold until we receive confirmation from you.
If you have any questions please do not hesitate to contact us on +44 (0) 207 151 2222.
Kind regards
UK Client and Partner Support
 

sammya

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Messages
70
Would anyone recommend anyother broker with no inactivity fee? Saxo is out of the list??
 

Draigean

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Messages
65
I got a similar email.
AAM user sharewatch suggested earlier (page 6?) that Saxo would be free/low cost, but it seems that this is not that case. I'll PM sharewatch, and email too.

Surprised that so many other users that were enthusiastic about Saxo a few weeks ago haven't come back to this topic. Christmas shopping/drinking/partying I guess :)
 

Conshine

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Messages
488
Sounds like my time spent transferring to Saxo (account opened but transfer ongoing) was a huge waste of time.
Same here!!

Where else can you go if you are a now and again trader?
I have three batches of shares that i want to keep for the medium term.

I intend to buy another batch in the next month or so, was waiting for my fxcm to saxo transfer to go through. No plans to buy or sell any more this year.
 

extramild

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Messages
24
Hi folks,

Got a reply from Peter Byrne - thanks Peter.

What he said is that it is costing FXCM and Saxo to host account and he feels that Saxo fees are not unreasonable.

While I am happy to get a reply I would still wish to have an account where I do not pay inactivity fees -anyone got any ideas?

Regards

Extramild
 

extramild

Frequent Poster
Messages
24
Sharewatch

Hi extra...did Peter give you an idea of what the fees could be? cheers.
Hi Smiley,

No would be the short answer. I did say he thought they would be reasonable but nothing in terms of a concrete answer.
 

Luternau

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Messages
894
I emailed SAXO about their email and seeking more information. This is what I got;

".......Our parent bank Saxo Bank A/S is putting the attached charges in place

This is NOT confirmation of our charges, we may choose to do something different, the same or not pass on a charge at all. At the moment it is uncertain. We will be sending out communication as soon as we do know but this will be in a few weeks’ time. "

I would agree that the UK Regulator should be told about the behaviour of FXCM. Their behaviour and underhandedness in how they imposed the new fees in Jun is shocking.

As for brokers in general, it would seem to me that small traders or inactive traders are not something brokers want to cater for free anymore.
 

extramild

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Messages
24
Hi Laturneu,

Accorrding to Amanda Harrison at Saxo it is 99.9% certain they will impose an inactivity fee.
 

Luternau

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Messages
894
Hi Laturneu,

Accorrding to Amanda Harrison at Saxo it is 99.9% certain they will impose an inactivity fee.
That email was from Amanda. She is being deliberately vague on whether or not they will be introduced. If you ask me, she knows exactly when they will and what they will be, time will tell.
Meanwhile, I need to get the hell away from the FXCM, the company that prides itself on it's customer service levels. So, goon with Saxo seems the best place for now.
 

smiley

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Messages
464
I would agree that the UK Regulator should be told about the behaviour of FXCM. Their behaviour and underhandedness in how they imposed the new fees in Jun is shocking.
Do we do this individually?

It was shockingly bad allright.
 

Draigean

Frequent Poster
Messages
65
This is the reply I got from Peter at Sharewatch:

Many thanks for your note below. Yes Saxo HQ decided to introduce an Inactivity Fee but starting in Feb 2013. I must admit while I was disappointed to learn of their decision I was also not a bit surprised and leave me explain why.



Anybody I spoke to recently will verify I have expected all Brokers to introduce this type of fee because of new increased charges from the Compensation Scheme. Quoting Fundweb 'Advisers say funding the Financial Services Compensation Scheme has become “unsustainable” after it announced higher than expected compensation costs are set to push up adviser levies by £28m. In its Outlook newsletter, published last week, the FSCS forecast a £25m minimum levy on the investment intermediation class for 2012/13 due to claims relating to the collapse of Pritchard Stockbrokers and spread-betting firm Worldspreads. Investment advisers have already been levied £66m this year'.



If you click the links below it will give some more details and explains how some brokers Compensation Scheme fees have doubled.



http://www.moneymarketing.co.uk/aifa-warns-fscs-threshold-hike-will-wipe-out-40-of-adviser-profits/1059736.article



http://www.fundweb.co.uk/home/fscs-levy-hikes-are-unsustainable-say-advisers/1062624.article



In addition there are new ongoing costs to monitor all accounts for risk and compliance on an annual basis. As a result the more accounts a stockbroker has the more staff they need to monitor them. So in other words Inactive Accounts are now costing the Stockbrokers.



So to answer your question are the days of low cost trading behind us I would have to say I expect the days of holding clients investments for long periods of time without any fees are over. One will have to look at the overall costs. For example brokers who are charging 1.65% plus Annual Fees may not charge an Inactivity Fee because they are covered by the Annual Fee.



While we do not have the proposed Saxo inactivity rate yet I still think they will offer incredible value at 0.1% with a min of £8 per trade. Only a few years ago we were charging €60 Annual Fee and 0.3% with a min of €30 per trade and were seen as great value.



Sorry if this was a bit long winded but these are the reasons for inactivity fees.



Have a good weekend.



Best Wishes,

peter




In fairness, I cannot complain really. I haven't bought a share since 2005, and I've had my portfolio with/moved from Goodbodys, Sharewatch, ODL and FXCM in that time. Free of charge.

Well, mostly free of charge. Despite closing my Goodbody account years ago they still bill me an annual charge!
 

Dermot

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Messages
1,037
Arising out of the Sharewatch/ODL/Fxcm/Saxo debacle I have sold my portfolio of shares at a loss as I am not prepared to go through this type of mess again. I have posted off the completed withdrawal form since last Friday and asked them to acknowledge receipt of same by email. Nothing yet. I personally have found FXCM particularly difficult to make meaningful contact with. My brother had a small amount of shares with Sharewatch and despite numerous emails to FXCM to identify the account code that they have them under he is not getting any replies. Maybe someone has a good news story about them
 

Draigean

Frequent Poster
Messages
65
Arising out of the Sharewatch/ODL/Fxcm/Saxo debacle I have sold my portfolio of shares at a loss as I am not prepared to go through this type of mess again.
Sometimes these things are more hassle than they are worth.
 

Draigean

Frequent Poster
Messages
65
Campbell O'Connor would be a good option i think.
I agree and I've decided to open an account with them. They're based in Ireland with a "physical address", hold CREST accounts and the annual charge is only €50 per annum. That's less than two month of inactivity with FXCM.

If they turn out to be another annoying debacle, then I'll just sell up and buy prize bonds!
 

Calico

Frequent Poster
Messages
331
I've just seen the updates to this thread about fees from Saxo. I have to say, having had so little time to consider this, I am now feeling misled. Saxo should have been up front about their intention to charge inactivity fees. Especially this was something I specifically asked for clarification on (see below).

I guess we'll just have to wait and see what the fees actually are. If I recall correctly Sharewatch charged an annual fee of €50 or something, which I was happy to pay. If the inactivity fees amount to around this then I suppose that's fair enough. Really don't want to change brokers again.....only just gotten used to Saxo's platform!

Email from Hayley at Saxo about fees:

Hi xxxxx,

There are no such fees with Saxo – no fees for inactivity, annual admin fees, no penalties or charges besides the commissions for the trades you do.

If there is anything further I can assist you with, please feel free to ask.

Kind regards,

Hayley.
 
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