Forum Archive Index - March 2001

[Roy <baldman@internet-auditor.com>]

Hi Michael,

Yes it happens and due to the size of the NZ market reasonably often in my 
experience.
I don't think the broker can be cast as some sort of demon however.  The 
value of the brokerage would hardly cover the cost of his time! especially 
if he(or she) had to muck about for 3 weeks trying to get another 500 shares.

On occasion when this has happened to me I have agreed with the broker to 
complete the order at a different value.
Being pragmatic, I suggest that you ensure you go with a flat rate broker 
and give it your best shot.
Unfortunately for small parcel purchases (like 1000 shares) the brokerage 
will always be a significant cost.

But, if you are a long term investor then the 5% growth should be 
achievable! (else why did you buy it in the first place?)

I have some empathy with you, having myself started in the days of 2-3% 
brokerage fees and small enforced parcel sizes! The good news is that you 
have learnt about buying strategies....:-)  Sometimes its just better to 
buy at market!


Cheers and good luck!



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
"I Trade therefore I am"
Zen Trader philosophy

Roy


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