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Online Share Trading

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Hey Simon, here is a business idea that rocks!

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We are all being told to save, save, save and put away money for our old day and all that stuff. We know in other countries the normal man on the street buys shares left, right and centre, because it is easy to do a purchase! The process is easy. Can't SBK open a chain of OWN-A-SHARE "shops"? Ja it sounds cheap, BUT, the idea is that you have a walkin-walkout share purchase store. It must be easy to buy and as easy to sell. To take it one step further, I can go into my local shopping centre and buy a gold coin at coin exchange, but I can't go into the "OWN-A-SHARE-SHOP" and buy 10 Kumba Iron Ore shares, because it does'nt exist! This is how it goes: It was payday and I have a spare 500 bucks. I go to my local shopping centre. I walk into the OWN-A-SHARE shop. I tell the "sales" lady, I would like to buy R500 shares. Yes sir, please sit down, let's see what you can get for 500 bucks. The computer kicks out that, at the current pricing, I can buy the following shares and how much I would get of each share. I say, give me 5 Shoprites. She enters it in the computer with my details, and caching, the computer states that my purchase was approved, I pay my 500 bucks via debit card, she prints my share certicate and off I go! As easy as pie. No thousands of papers to complete, websites to register on or any of the million and one things you have to do to be able to buy shares. A 10 minute process! Like buying jam off a shelve in Shoprite! I am now the proud owner of 5 Shoprites! Next month I buy another 500 bucks worth of shares and to think, I'm only 20 years old. How many shares will I own when I'm 40? IT IS EASY TO BUY AND THAT IS WHY I BUY!
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Regular Contributor
Without regulation the man on the street wouldn't get a good deal. Broker would purchase shares for himself and resell as a quote driven market, creating crazy spreads, putting the interest of the client last. The uneducated would still think it's a good deal. It would need to be a execution only discount broker, the average guy wouldn't have a clue what to get, and with R500 for advice and brokerage you would be lucky to walk away with 1 share in ABO. But ya, nice fantasy. Maybe in the distant future..
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Regular Contributor
How much of the R500 goes to buy / sell costs? The cost on small purchases like these will just kill any potential profit and Joe Soap wouldn't understand what happened to his money.
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Valued Contributor
costs are nanagable if the orders are bulked up .. our ASI costs are R20 +1% with a min transaction size of R500 .. so the idea not impossible, but not gonna happen any time asap .. issues are fica, knowledge, etc .. and even with managable costs we're talking investing not trading ..
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Super Contributor
...I believe the unit trust industry would be a better deal for the smaller investor.
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Super Contributor
ummmhh ever been on SBK internet banking? autoshare invest ring a bell?
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Fica Fica Fica - That is why this stupid country can't grow because it is full of bloody red tape. Negativity Negativity - another pest. 1. The buyer does his/her own homework. No advice from the broker required. 2. This is a shop. Nothing more and nothing less. All they do is handle purchases and sales. 3. Buyer knows cost up front. 4. Reputable company/bank like SBK runs the business. What is the difference if I am registered on SBK to buy shares or if I go to a walk-in "store" to buy shares? 5. See this positive comment, there is a way: "costs are manageable if the orders are bulked up .. our ASI costs are R20 +1% with a min transaction size of R500 .. so the idea not impossible" 6. Yep, it is for investing purposes. My very first line stated that we are being told to save, save,save. What better way to save than in good solid top40 company shares. 7. Unit trust - People can do far better putting their money into a solid company. How many of these unit trusts have given even a fair % of growth over the years? On top of that the fees that they charge will chew you up and spit you out. Buying into a specific company, we talk about growth, we talk about tax free dividends, we talk about holding it for more than 3 years cutting down on capital gains tax. We talk about companies getting massive cash injection and using that wisely to expand business leading to JOB creation! 8. Autoshare invest is a watered down product. We have 50 million people in SA. Of that I guess, maybe 2 million own shares. If it was easy to buy shares, you could pull another 10 million into this game.
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Super Contributor
It may happen in the future but for the time being it seems like a very farfetched idea. The idea to create a European Union was probably on the table 200-300 years ago and would have been beneficiary for traders not to pays taxes on the borders between the countries but it only exist now because the really STRONG NEED came 50 years ago. The day that the masses start blocking this websites to register and use this site your alternative will come into play.
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Super Contributor
there is a great deal of truth to what you say and in the current enviroment..the effiecient sale of the market theory may need new participants to keep up the trajectry of growth.
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Super Contributor
The stock market will only go up if there is an injection of capital into the economy and not by getting into the savings of the average consumer which is already used by the banks for investment purposes.
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What is preventing SBK from selling shares from their branches. I see no difference between sitting here behind a pc, buying shares or going to a branch and buying shares. The lady at the branch will capture my details to comply with the FICA rules and I will pay her via debit card for the purchase. Maybe this is the question. If I do not have a pc or the internet, how or where can I buy shares currently?
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Super Contributor
Unit Trusts. But for the time being....lets not mix tomatoes and securities.
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Regular Contributor
You could trade over the phone. R35 extra, 0860 121 161.
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Regular Contributor
R20+1% = R25 on R500. So getting in and out of the investment requires 10% growth to break even. I agree, doable over several years.
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Tooooooooo complicated for the man in the street. I should take this to Gill Marcus of the reserve bank. Look at these benefits: If blacks own shares in a company, then that company complies with BEE regulations and if that company/share is not performing, then the share holders can have a say. In that way they would not mind who runs the company, as long as the company performs and the share grows in value. If the company members strike, then the share takes a dip and that would make the share holders angry. It's a win-win situation and as I have mentioned we are talking about saving, capital injection for expansion and job creation. I can't see any downside to this idea. Okay, so who is with me to start such a business in my local shopping centre?
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Remember, the whole idea is to save and save means long term. Paying a few bucks every month is nothing if the man in the street is going to end up with dividends that are tax free and capital growth over the long term. Where else can the man in the street do a better investment while truly helping the economy to grow?
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Maybe Sastrix should open these stores and sell exchnge traded funds.
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Okay, at least it will be a step in the right direction but still not ideal. How is it possible to buy a government retail bond or whatever they are called at any P&P store without Fica, but when it comes to shares, it becomes a nightmare? I know this can work and I know that the oaky that own the shebin in Guguleto sitting with 5 Million bucks under his bed, will also buy shares.
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Regular Contributor
yes and somebody that sits with that amount of cash ,maybe doesnt want anybody (ie SARS) to know about it
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