Broker fees up

Press, 18 June 1986, Page 35

Broker fees up

The deregulation in the sharebroking industry, introduced at the end of last month, has not brought joy to all small investors. Some broking houses have put up their minimum brokerage charges because of the costs involved in transacting small parcels of shares. However, some firms have not raised their rates, particularly those who specialise in dealing with small investors. Hamilton Hindin Greene is set to raise its minimum charge from $5 to a maximum of $2OO worth of shares, to $lO for a maximum of $4OO. However, Harkness and Company has not yet raised its rates. Mr Ken Stevens, of the firm, said that it was probably easier to leave the rates as they were because the small investor might find the higher rates were disproportionate to the shares bought or sold. Lawrence Millton and Howarth has moved its rates at both ends of the market - raising the price of minimum brokerage and reducing the price at the maximum end. The minimum brokerage price has been set at $lO for $lOO and $2O to the $BOO. The rate between $BOO and $50,000 has been maintained at the standard 2.5 per cent, and between $50,000 and

$200,000 it is now a flat rate of 1 per cent. Above $lOO,OOO the fee has been cut to a flat rate of 0.8 per cent. Chamberlain Sturge and Company has yet to decide on its minimum brokerage charge, but a partner. Mr John Sturge, said that any price increase would not be on the same basis as those charged in the North Island, where he had heard one instance of $35. Egden Wignail and Company put up its minimum brokerage charges when deregulation was introduced, charging $lO for the first $4OO. However, Mr Jon Wignall said that extra charges would be incurred if a deal was "messy,” such as a lost certificate. Anderson Reid and Company has not yet put up its charges, although a price increase is considered likely. None of the Christchurch brokers spoken to said that their firms would be discouraging buying orders of under $lOOO in order to avoid unprofitable business with small investors, although a Press Association report says that this is occurring in the North Island. The report says that some brokers are introducing a system of allowing regular customers to earn a discounted brokerage rate' after doing a certain amount of business each year.