Being your own broker

[storchyman]

How would you go about dealing directly through the market via ITS? ie not through a broker.

how much would it cost approximatly per year to do so?
eg if you spent 10k/yr on brokerage, would it then work out cheaper to do so?

I am assuming the Berkshires and LICs are doing this.

If it is a platform that is needed, I am thinking someone could make a plain out of the box software program that the investor could buy. The money saved in brokerage fees would surely cover this.

 

[storchyman]

no one?

 

[Trembling Hand]

Mate you are kidding aren't you.

10k in brokerage what a joke! Thats 2 weeks brokerage for some punched drunk boxers on ICE around here.

Too funny!!!

 

[Ardyne]

Why cant people just answer questions in a traight forword manner on this forum. If you dont like the question dont reply.

 

[Trembling Hand]

Why cant people just answer questions in a traight forword manner on this forum. If you dont like the question dont reply.

Well everyone gave this thread the attention it deserved.... none.

Then he bumps it. So I gave it the attention the bump deserved... a laugh!!

By the way I'm not the best speller here but I am arrogant enough to suggest you use the spell check before you criticize someone. Your message may get lost in the poor delivery :

 

[storchyman]

Mate you are kidding aren't you.

10k in brokerage what a joke! Thats 2 weeks brokerage for some punched drunk boxers on ICE around here.

Too funny!!!

th, do you pay 10k on brokerage a fortnight?

i bet that impresses your cool mates

 

[Trembling Hand]

th, do you pay 10k on brokerage a fortnight?

i bet that impresses your cool mates

Mate thats 2000 round trips. trading 10 lots thats 200 trades!

 

[nunthewiser]

th, do you pay 10k on brokerage a fortnight?

i bet that impresses your cool mates

LOL

impressed me thats for sure ....... gunna go tell the bishop to get his act together

 

[Happy]

I don't know the answer, but I suppose there is annual license payment involved and because several trading houses amalgamated it could also mean that economies of scale are important to survive.

Did you try to ask an existing broker what is involved to get the license?

Probably best place to ask.

 

[Sir Osisofliver]

How would you go about dealing directly through the market via ITS? ie not through a broker.

how much would it cost approximatly per year to do so?
eg if you spent 10k/yr on brokerage, would it then work out cheaper to do so?

I am assuming the Berkshires and LICs are doing this.

If it is a platform that is needed, I am thinking someone could make a plain out of the box software program that the investor could buy. The money saved in brokerage fees would surely cover this.

Storchyman,

1) ITS systems are divided into Automated systems that feed directly into the ITS (like those provided by Etrade and Commsec) and those that are manually entered on the SEATS system (provided by ASX) via a DTR (Designated Trading Representative of a broking house).
2) Automated systems have millions of dollars of R&D and constant updates required to the system to only allow valid orders directly into the SEATS system. No one is going to sell this hugely expensive software for a pittance to the average joe blow so he can place trades in the market. It's designed to handle thousands of trades per day.
3) The expense of a DTR terminal runs about 60k per month last time I looked at it.
4) You need to have done an exam and passed before you can become a DTR.
5) If you actually had one of those systems for your personal use, what stops you from manipulating the market for personal gain? (And here is the crux - the hugely expensive software - and the firm responsible if their DTR is a crook - is designed to give some level of control over those people who would attempt to manipulate the market - the DTR's if they are naughty get to go to prison for insider trading and market manipulation. As a simple end user of some software - wth could ASIC do to you?)

Sorry it's a pipe dream and will never happen.

Sir O

 

[wonderrman]

https://www.asxonline.com/participants/index.html ... that tells you what it costs/how to become a 'participant' with ASX. $100k straight out and I think you need to have $10m on your balance sheet. That's to be a broker though. Why bother? Just trade through IB.