Forum Archive Index - July 2000

[NED 007 <ned@techemail.com>]

  One important factor that has not been mentioned in this debate - brokerage 
and other costs. I trade online in Australia using Sanfords. They have just 
"reduced" their rates for a one-off trade from a flat $28.95 to $27.45 or 
0.11%. This is a huge increase on a large trade, and makes them more expensive 
than many local brokers (especially Access - $29.50 flat rate) Then there is 
stamp duty of 0.15%, so a round trade will cost 0.52%. Doesn't sound much, but 
watch it add up! In addition there are bank charges - fees for each deposit and 
withdrawal, every time you buy or sell. At least we don't have to pay their 
GST. Trading locally, I can do 5 trades for the cost of a single trade of the 
same size in Australia.
  I have not found Market Depth info to be any great advantage - sure you can 
see the buyers and sellers stacked up, and see any imbalance, but this still 
does not tell you (with any certainty) which way the market is headed. When you 
watch this process dynamically, you can see the market orders taking out the 
buyers (or sellers). In other words, the pressure that moves the price usually 
seems to come from the outside, and the limit buyers and sellers are only part 
of the equation.
 The intraday graph of prices and volumes that I get here is (in my opinion) 
more useful.
The New Zealand market offers plenty of good opportunities, high yields, and 
low trading costs.
Stop whining about the government, attitudes, taxes, politics etc etc and trade 
it.

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