How much investing in shares will cost you…

Julie Brownlee, Fsp Invest, 15 Jul. 2015

Tags: investing in shares, cost of investing in shares, stock broker, stock broker commission, stock broker charges,



It’s not just the money you need to invest to buy shares you have to cough up, there are also fees and costs you need to pay your stock broker.

So what fees and other costs do you need to pay?

Read on to find out…



Your stock broker may charge you fixed fees


Many stock brokers will charge you a fixed administration or management fee on your brokerage account. You should check how much this is before opening an account.

You may find if you’re making a lot of transactions within a set period of time you won’t have to pay it. This is because of the commissions the stock broker will make from you investing in shares.

These administration fees tend to be payable monthly, quarterly or annually. The amount will vary depending on the broker you use, but this could be in the region of around R75 a month.


Investing in shares means paying your broker a commission


You will also have to pay for each transaction you make through your stock broker. This is for both buying shares and selling shares.

The basis of this commission (or brokerage) is the value of each transaction you make.

Different brokers may charge slightly differently. You may pay a fixed charge every time you trade plus a sliding scale cost or just a fixed commission.

Again this is something worth checking out before opening an account with a stock broker.


The charges you can’t avoid paying when investing in shares


There are other charges payable too. This includes Market Securities Tax (MST), STRATE, Insider Protection Levy (IPL) and Value Added Tax (VAT).

All these charges are payable on both buying and selling shares with the exception of MST. This is only payable when you buy shares.

So there you have it. How much investing in shares will cost you.

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