The Financial Regulator today published its first cost survey on stockbrokers fees and charges. The survey shows the commissions and account maintenance fees stockbrokers charge customers for buying and selling shares for them. It also shows what it would cost to invest 10,000 and 35,000 in shares quoted on the Irish, UK and US stock exchanges.
The survey shows that*
- Charges for investing 10,000 in a company listed on the Irish or London stock exchange range from 75 to 175, showing a potential saving of 100;
- The minimum charge for investing 10,000 in the US stock exchange is almost 100, compared to 75 for the Irish and London exchanges; and
- When investing larger amounts of money, the difference in fees between different stockbrokers becomes more significant. Charges for investing 35,000 in a company listed on the US stock exchange range from 187 to 545, showing a potential saving of over 350.
Head of Consumer Information, Sharon Donnery said, This cost survey has been produced to help people who want to invest directly in the stock market. Whether you have experience buying and selling shares or you are thinking about investing in the stock market for the first time, you will want to get the best value from your stockbroker. It is also important to not only look at the commission you will pay, but also ask about annual account maintenance charges.
It is important to find the service you need and to get the best value for that service. Not all stockbrokers offer the same services. For example, some will act on your instructions only, where others will advise you on what shares to buy or sell and some will make investment decisions on your behalf, within agreed guidelines, she added.
The Financial Regulator last week published a new guide, Savings and Investments Made Easy, which has information for people who want to invest in the stock market. It explains why shares are more risky than some other types of investments and why they are generally a long-term investment. It also explains why you should be careful about investing all your money in one company, as the return you get will depend entirely on the performance of that company.
*All charges are exclusive of stamp duty