ClubFinance Frequent Trader

Geoffo_M

Has anyone bought shares through this organisation, (www.clubfinance.co.uk) seems incredibly cheap at 50p a trade & 0.35% of your portfolio (minimum £100) pa? Any catches? They seem to deal in all types of shares but haven't heard of them before, I wondered if I was missing something?

Lokolo

They are very expensive for international trading. £25 for US and European stocks. Plus £100 a year in admin costs for US shares.

They also charge a minimum £25 quaterly admin fee for platform use.

donniej

In addition to the charges Lokolo mentions - 0.35% per annum is a not a great deal. On a 10k portfolio, you'd be paying £350 - at £6/trade (e.g. via SVS securities or X-O), you'd have to be clocking 58 trades/year to make it worthwhile!

Geoffo_M

donniej wrote: »

In addition to the charges Lokolo mentions - 0.35% per annum is a not a great deal. On a 10k portfolio, you'd be paying £350 - at £6/trade (e.g. via SVS securities or X-O), you'd have to be clocking 58 trades/year to make it worthwhile!

I think it's better than that donnie because 0.35% on a £10,000 portfolio is only £35 not £350. In that case their minimum £100 a year would be charged. But as you say, that's a massive saving isn't it. I'm with Share.com at the moment paying £7.50 a trade & I buy & sell about 50 companies a year so 100 at 50p =£50 plus the £100 makes a total of £150, when I'd be paying £750 at Share.com (I'm ignoring stamp duty cos I'd be paying that anyway). That's a lot to save, think it would only work for those who were frequent traders thought wouldn't it?

grey_gym_sock

if this deal looks cheap, perhaps you're trading too much.

if 0.35% is less than you're paying in dealing commissions, what are your total trading costs? i.e. on top of dealing commissions and quarterly charges, add in stamp duty and bid-offer spread.

how do your total trading costs compare to the alternative viz. buying into collective investments? (there are trackers costing 0.35% or less.)