Stock buying costs

[poseid0n]

Hi, what is a reasonable % cost you should look at when buying stocks. Currently bell direct have $15 or 0.1% of trade. In this case then, should the minimum trade be $15,000 so as to be the most cost effective. If iam trading only $1500 then that is 1% in !% out, is that an excessive amount if I want to cost average over a long period of time.

Cheers

 

[Steve C]

Hi, what is a reasonable % cost you should look at when buying stocks. Currently bell direct have $15 or 0.1% of trade. In this case then, should the minimum trade be $15,000 so as to be the most cost effective. If iam trading only $1500 then that is 1% in !% out, is that an excessive amount if I want to cost average over a long period of time.

Cheers

If you have limited capital, CMC Markets Stockbroking offers $9.90 brokerage per trade - cheapest broker in Australia. They are currently selling their stockbroking arm to concentrate solely on CFD's so who knows how long that rate will be around for.

 

[burglar]

Hi, what is a reasonable % cost you should look at when buying stocks. Currently bell direct have $15 or 0.1% of trade. In this case then, should the minimum trade be $15,000 so as to be the most cost effective. If iam trading only $1500 then that is 1% in !% out, is that an excessive amount if I want to cost average over a long period of time.

Cheers

Let me state the obvious.
The smaller the trade, the more need for a whopping profit to cover brokerage.
It all depends on your appetite for risk and your financial position.

Seeking a cheaper broker is one solution.
Saving more seed capital is another.

Picking a better company is helpful,
but timing, I believe, is more critical.

https://www.aussiestockforums.com/forums/showthread.php?t=19955

 

[waimate01]

Also worth seeking internal clarity as to whether you intend to be a trader or an investor

If you're intending to be an investor, then transaction costs are pretty much a gnat.