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Online Share Trading

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Costs

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sponono
Super Contributor
Here's something to bowl you over: want an exposure to 80,000 SAPI shares. If you just buy the shares the brokerage would be R10,736, if you buy SSF's the brokerage would be R11,040 and if you prefer CFDs the brokerage would be just R50. Something just does not look right.
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11 REPLIES 11
THRESHOLD
Super Contributor
Actually the CFD "brokerage" is included in the cost paid for the stock at a rate of .35 of a percent - but because it is capitalised to the initial cost there is no VAT. Add this to your R50 (+VAT?) brokerage. And if you sell you CFD's the same rate again. If you sell of the same day the sell rate drops to .2 of a percent. BUT get Standard OST to give you the low down.
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Not applicable
Ja, your calculations are wrong somewhere. You should have roughly 1.6% on the buy for shares, around 0.6% for SSF's (if memory serves) and 0.35% for CFD's. But don't forget your holding costs. A CFD (AND SSF) will cost you annual JBAR + 1 compounded daily on your total exposure. There will almost certainly be a breakeven point where shares become cheaper, the longer you hold
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Spoegs
Contributor
Typical rule of thumb for CFD's is max 3 months, unless the position really shoots the lights out I suppose.
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THRESHOLD
Super Contributor
If you trade CFD's in quality stocks with a good dividend yield (and allow for margin variation,) you have the opprtunity to borrow money to buy top quality assets at not much above prime. (They do not have the same tax problems as instalments etc with expiry and rollover.) AND you can have the interest cost against the profit (hopefully) for income tax. So carry them for years if you like - just make sure you have a PLAN. IMO
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Ninja
Super Contributor
Hehehe....its a hell of a wake call innit....trade spot forex or the indices......much lower risk, almost zero cost.No brainer.
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SimonPB
Valued Contributor
above R10k, equities 0.96% to buy and 0.71% to sell .. CFD's are buy or sell at 0.35% +R57 (includes vat) ..
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WR
Regular Contributor
Simon, are u saying its better to buy CFD's
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Not applicable
Don't forget that a CFD costs you 0.02% per day on your total exposure, so you can add a percentage point for every 60 days, more or less
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SimonPB
Valued Contributor
no .. they way different options .. all I saying ius that CFD's are cheaper ..
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WR
Regular Contributor
trading yes CFD's. Long term buy shares
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Not applicable
And OST CFD's are pretty expensive, unless you are trading big volumes
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