Forum Archive Index - March 2001

["Michael Sprott" <sprotty@zfree.co.nz>]

Hi

Some advice requested.

I recently placed a limit order for some shares with my (on-line) broker for 
1000
shares. I received notification that 500 shares had been purchased on my behalf 
I
was charged the flat fee brokerage for the trade.The rest of my order was not 
completed
and subsequently the price of the share has moved upwards. 

Now my question. If the broker is unable to fulfil the other 500 shares, has the
order been fulfilled and should I have to pay the full brokerage?

I have called my broker and he said that they will try and marry sellers with 
buyers
and for limit orders they will often fulfil partial orders to make up a trade. 
It
seems I must pay the full brokerage even if only part of the trade has been 
completed.


Now my issue is this - I purchased what to me was an economical bundle of shares
trying to minimise the brokerage on the trade to a small % of the overall 
purchase.
By only fulfilling half the order my brokerage percentage has effectively 
doubled
to 2.8% of the purchase price which means I need to eefectively see a 5.6% 
increase
in the price of the share just to break even. What if they had only been able to
fulfil 25 shares of my order - would I been up for full brokergae in this 
instance
also?

I would have preferred not to get any shares than only half but I am told that 
they
won't cancel the order. Their terms and conditions do not cover this event 
alsthough
there is a suitably vague statement that allows them to fulfil or cancel orders 
as
they see fit.

Has anyone else suffered a similar situation and sought resolution?

ms


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