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Negotiating commission with brokers - SMSF

Discussion in 'Medium/Long Term Investing' started by Garpal Gumnut, Apr 25, 2007.

  1. Garpal Gumnut

    Garpal Gumnut

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    Does anyone have any experience with negotiating commission with brokers.

    I run a SMSF, 90% exposed to asx shares which I am planning to turn into cash quite soon.

    As a SMSF the brokerage on trades is quite punitive, even through "discount brokers".

    Garpal
     
  2. ta2693

    ta2693

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    I do not. But I am very interested to know the result of your negotiation. Please let us know what discount did you get. Thanks.
     
  3. Julia

    Julia In Memoriam

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    On what basis are you intending to try to negotiate? i.e. for a negotiation to occur you have to have something to offer!
     
  4. Garpal Gumnut

    Garpal Gumnut

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    Dear Julia,

    I know what I mean when I negotiate the cost of a service with another person.

    What is your definition so that I may assist you.

    I suppose a larger parcel of shares worth more in commission for the broker than my normal transaction brokerage is what I mean. Does this help?

    Garpal
     
  5. tech/a

    tech/a No Ordinary Duck

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    Garpel.

    Unfortunately they are interested in turn over.
    If your trading often say 50 trades a month over 30K a trade then they may be interested.

    In the overall picture though Id have thought that longerterm SMSF holding would have commissions pale in significance to returns.
     
  6. Garpal Gumnut

    Garpal Gumnut

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    Thanks Tech

    That puts it nicely in context. They are after turnover and not in amount of single portfolio sale.

    Agree re commissions, but ancestors from Cavan, a county in Ireland poor and godforsaken with people more mean than the dourest skinflint Scot.

    I'll see what I can negotiate and let the forum know.

    Garpal
     
  7. Julia

    Julia In Memoriam

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    I imagined that was what you meant and, as Tech has pointed out, that's probably fairly unlikely to mean too much to them. Good on yer for trying though. Your ancestors would be proud.

    Good luck.
     
  8. yonnie

    yonnie

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    join Interactive Brokers for a good deal.

    0.8% over order value with a minimum of $6 per trade.:)
     
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