SHAREBROKERS' COMMISSION.

Auckland Star, Volume XXVII, Issue 201, 26 August 1896, Page 2

SHAREBROKERS' COMMISSION.

(To the Editor.) 1 Sip.,—* Probably many beside myself hay» noticed the onoraouH influx in the ranks of . mining agents and eharebrokera of late (many of whom have given up steady employment), showing at once thab such business must* be a very profitable one. A sharebreker requires no stock in trade, has.no stock to tjei old fashioned or out of date, or to insure againat fire, simply buys bo order and sells bo order and nets his extremely liberal profit). According bo bh« Brokers' Association it does nob matter - what) shares are sold, for from 2d up to la the commission is £d per share, equal to .■ from nearly 4|d per cent as a minimum profit to 25 per cent, as a maximum profit) on shares sold at 2d. If we take 7£d as bhb average rate of sales under Is bhe profit is nearly 7 per cent. On 12£ d shareß commißsiou Id per share, equal bo over 8 per cent., and shares sold at '3s 4d per sb»re, commission Id per share, equal to 1\ per cant., a fair profit. Ib is nob iurprising to find bo many new brokers under these conditions, and I tor oaa certainly think the time is come when new rules may be adopted, and suggesb the following rates as fair and reasonable, viz :—ld commission on shores sold ud to Is per share ; id commission on shares sold ab Is OJd to 2a per ihare; *<* J commision on shares sold ab 2s Id to 3s 4d; m for all sales amounting to less than £5 and g. over that sum *2Jd jmr cenb. commission, fe I havo endeavoured/bo show whan I con-f;;, sider a high monopoly on the part of the|p^ Brokers' Association thatshould be consider-^||| ably moderated in favour of stockholders, who take all tbo risk of their speculation. Brokers seldom, if ever, advise their clients, being in a neutral position bebweea sdller and buyer. If he favours one he does ib at bhe expense of the other, therefore takes;; no risk. Apologising for taking up so much of your valuable space, and hoping seme more able writer will"cuke up this matter also " For the wrong that needs resistance. And the good, that we can do." I am, etc., Small Investor.