I want to make a monthly contribution of a R1000 to an index tracker like SATRIX. If I use OST the costs will exceed 8% of my investment every month. If I go direct to SATRIX you are looking at brokerage, platform costs, debit order costs etc. and one is lucky toy get away at under 2% of investment. Is there any other way to invest in a product like SATRIX that will decrease fees?
instead of R1000 a month,buy 12 months lump sum on OST.....that will be about 250 shares for about R11700. Cost will be R80 which works out to about 0.7%. Small amounts(monthly) thru SATRIX direct, large amounts(lump sums) thru OST.
Thanks everybody. I spoke to someone at SATRIX and he gave me the following breakdown which I can apply on a R1000: Debit order = 0.35%,transaction cost = 0.1% and 0.6%p.a. admin cost calculated quarterly. Let's add 0.05% for STRATE and investor protection and we are looking at about 1.1%. If ASI is R20p.m. and 1% then it will be 3% on a R1000. So I guess 1.1% on SATRIX is the best I can do.