Forum Archive Index - March 2001

[Peter Hansen <peter.hansen@access-brokerage.co.nz>]

For the record - Access Brokerage attaches the flat brokerage charge to the 
first trade in completion of any order (I can't speak for other brokers). 
 Any subsequent trades required to complete an order do not incur further 
brokerage.  The cost to the broker in executing a trade is basically the 
same whether 5 shares or 50,000 shares are traded - hence the brokerage is 
payable regardless of whether the full order is completed.

I know this ground has been well and truly covered in this forum 
previously, but the real issue here is the availability of market depth. 
 If depth was available to web clients then they would be able to make more 
informed decisions regarding the likelihood of their order being fully 
executed at any particular price (particularly given the illiquid nature of 
many NZ stocks).

In the meantime, especially if the trade is in a less liquid stock, I 
suggest you phone your broker and ask what volume is on bid or offer at 
your desired price prior to submitting the order.

Regards

Pete Hansen - Access Brokerage

-----Original Message-----
From:   Roy [SMTP:baldman@internet-auditor.com]
Sent:   Tuesday, March 20, 2001 3:06 PM
To:     sharechat@sharechat.co.nz
Subject:        Re: [sharechat] Orders at limit, partial trades - advice 
required

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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