Standard Bank says it is making significant strides in trying to ensure that investing on the stock market is accessible to average South Africans.
Standard Bank Online Share Trading has again reduced its fees for 2008, the fourth fee reduction since January 2005.
“The price cuts are part of our effort to grow the market. We want to make investing in shares affordable and accessible to the average South African private investor. We believe the reduced fees will give new clients an opportunity to enter the stock market,” says Tshwantsho Matsena, head of online share trading at Standard Bank.
Standard Bank Online Share Trading has reduced its brokerage rates from 0,7% to 0,6% per transaction, with a minimum fee of R70. Single stock futures brokerage fees have been reduced to R60 from R70 and the monthly administration fee goes from R54,15 to R50. This fee is waived after three trades in a calendar month. On a R10 000 trade, the savings in brokerage from 2004 to 2008 is just below 50%.
In addition, it has scrapped the fees for its technical analysis courses for clients. The basic course used to cost R350 and the advanced one R650.
“Over the past few years we have been involved in a programme to educate ordinary people on how to invest in shares. We offer a variety of courses to help a novice investor starting with the basics of investing, then move them into more advanced products such as share instalments, warrants and single stock futures.
“Last year alone, we held some 150 courses with just over 16 000 attendees across the country. We are planning about 180 courses this year,” says Matsena.
Standard Bank Online Share Trading clients have free access to educational content, accredited research, technical analysis, company data going back to 1991 and analysis consensus data.
EXAMPLES OF COSTS WHEN BUYING SHARES
Buy R8 000-worth of shares
Shares: R8 000
UST at 0,25% on purchases only: R20
Brokerage at 0,6% with R70 minimum: R70
STRATE fees: R10,92
Investor protection levy: R0,02
VAT: R11,33
Total fees: R112,26
Buy R15 000-worth of shares
Shares: R15 000
UST at 0,25% on purchases only: R37,50
Brokerage at 0,6% with R70 minimum: R90
STRATE fees: R10,92
Investor protection levy: R0,03
VAT: R14,13
Total fees: R152,85