Shouldn't the banks with their huge profit margins not be charging less in commission fee's compared to other brokerage firms? IG is charging 0.2% commission on cfd trades. ABSA charges 0.4%, SBK is charging 0.35% for cfd trading. I found another brokerage firm on the web that is also charging 0.2% for cfd trading. The 0.35% difference when buying and selling cfd's does not sound like much, but do a comparison in commission charged with cfd trading; you will be shocked. Is it an opinion of take it or leave it? I would understand the commission if a broker buy or sells on my behalf; but that is not the case. Any other views?
im a big fan of pointing out ost faults because im paying for good service and get poor service however my personal opinion is cfd is not an exchange product so i would prefer it be with a bank i feel they will be there tomorrow, smaller brokers may not even if they cheaper. secondly ig charge u a fixed R100 minimum fee to get in and out of a trade if im not mistaken, ost charges R57 one shot. personally i prefer lesser upfront fees, i see profits much faster. u have to do homework and go with what you feel is best. also to note that not all brokers allow weekend viewing of your trades or its history and ost does so its the little things you need to take into consideration. and lastly ost is ost, they can charge that so they do just like how they do with monthly fees but service/maintenance doesnt improve. with whom does your money feel safer? and alsi if you trade frequently call ost speak to someone senior and negotiate or try to.
Thanks for the replies. I agree with all being said but still, one of my last trades the commission @0.35% was R3200 whereas @0.2% would be R1700. Now multiply that with 3 or 4 trades per month and then again by 12 months. That is one huge lump sum. It would be interesting to know the final figure when all is included in the calculation.