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Open position explained?

Discussion in 'Beginner's Lounge' started by Bruiserh89, Jul 28, 2019.

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  1. Bruiserh89

    Bruiserh89

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    Hi folks. Newbie here so I think I'm in the right place. I just signed up for an account with IG and have not bought shares before. I intend on dipping the toe through ETF's for the diversification.

    I was looking at the fees for IG and it stated this:
    Subscription fee
    A quarterly $50 subscription fee may be charged from your share trading account depending on your trading activity that quarter. To be exempt from the charge, you will need to:
    • Deal at least three times across either of your share trading or CFD accounts during the quarter,
    OR
    • Hold no open positions in your share trading account at the end of the quarter.
    Please note, as long as you have no open positions at the end of the quarter, you will not be charged a subscription fee regardless of whether you hold a cash balance on the account. The subscription fee will apply per client rather than per account. Please see our customer agreement for more information.

    I don't want the subscription fee. I only intend on buying the stocks for long term growth. What is an open position? I've read definitions on line but don't get it. Is the act of buying the shares an open position?

    Sorry, told you I was new!
     
  2. tech/a

    tech/a No Ordinary Duck

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    When you buy shares you open a position
    When you sell shares you own you close a position.

    If you don’t own any shares then you don’t have
    Any open positions.
     
  3. Bruiserh89

    Bruiserh89

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    Thanks. So I either need to trade 3 times in a quarter if I want to hold shares. As a buy and forget investor this may not suit me.
     
  4. tech/a

    tech/a No Ordinary Duck

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    No you can trade once if you like
    But will be charged a subscription fee
    Unless
    You trade 3 times in a month
    Or
    You have no open positions
     
  5. So_Cynical

    So_Cynical The Contrarian Averager

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    IG probably wasn't a good broker to choose if you just want to buy and hold, Selfwealth, Bell direct, Commsec are better (cheaper) options.
     
    willoneau likes this.
  6. Bruiserh89

    Bruiserh89

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    Thanks Cynical. I am going to go with Selfwealth.
     
  7. willoneau

    willoneau

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    Why Selfwealth?
    You had much to do with them So_Cynical? how do they compare to Commsec?
    I do like the $9.50 commission fee up to $100,000
    no interest paid for cash held and not used under $100,000
    over that you get 0.25%
     
    Last edited: Jul 28, 2019
  8. So_Cynical

    So_Cynical The Contrarian Averager

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    SW - Cheap and Chess, crappy cash options. Commsec are trying to be competitive again, have introduced 2 dollar trades on a very small selection of ETF's via their app.
     
  9. willoneau

    willoneau

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    That is good news as i use commsec.
     
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