The question of costs revisited

[#1]

So I have continued my study of transaction costs by comparing SSF's, CFDs, spreads, warrants and shares. Costs are made up of bid/ask spread, commissions and shading, transaction fees, and slippage. So far, I conclude that SSF's are the most expensive by far. Shading of .4% either way makes a .8% commission, plus the flat rate fees and taxes. Slippage is high because you have to trade on the underlying ruling price, meaning you have to accept whatever bid/ask spread is available when your ruling price triggers (both for buying & stoploss). I welcome comments

[Electrox]

Thats why i use CFD's now. 0.8% round trip on any ammount traded. that way you can have multiple exits without worrying about paying a brokerage fee each time.

[#3]

I only started trading profitably when I moved over to CFDs. The commisions were killing me.

[SimonPB]

what do the cfd people charge for comm ?

[#5]

Idealcfds FTSE mini = 400 GBP --- 1 GBP in, 1 GBP out

[SimonPB]

nah mon, on jse stocks .. otherwise comparing peaches with bananas ..

[#7]

Must say the equity side is quite high 0,35% of underlying share

[#8]

Ideal charges minimum R75 with .75% comms (don't know if this is total or either way). GT247 charges .35% either way, no minimum for equities. Hennie, this is not expensive, relative to the others. Standard bank charges are not disclosed, but the education section puts their shaded comms at .4% either way, with a flat rate transaction fee over the top.