It's going to depend upon how much you invest I read it was capped at $ 25 .00 so if you buying 20 K of stock its cheap.
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Initially, yes you are probably right. But as I accumulate those holdings to a decent level, DRP at a discount to market price (this year has been an exception to that general rule as we all know), is usually a better deal than reinvesting cash dividends at market price. The transfer out fee is a one-off. Once those shares are "out" all subsequent DRP allocations are costing me nothing - just the first one post transfer. If you get what I mean.
Exactly. Which is why small investors like me are pissed. Sharesies set themselves up on the premise that they were helping people on low incomes, with minimal disposable income, get into investing. They targeted us! We are the ones who got them established. Yet now, we are the ones they have chucked aside. The only people who will benefit from any of this, are those who are NOT "small" investors.
While it does look bad, if you take a look at the monthly fees if you plan to invest $500 a month then it works out at 0.6%, just need to do a little more forward planning. It is making it more difficult but they need to make some money or they won’t be in business at all.
I suppose for those using their service the cheaper fees for lower investment amounts were great while it lasted. An increase in fees is naturally not welcome. But there still does not appear to be a cheaper service available.
On the bright side, once those small investors have amassed a decent sized investment, selling may be much cheaper than under their previous fee structure and others because of the cap.
So it seems there is literally nothing one can use as an alternative to Sharesies, which means those of us who are dissatisfied but wish to continue investing, have no option but to suck it up and stay with them. Or maybe we just have to flag the idea of DCA and save larger amounts of money before placing an order (via a traditional broker).
You should see the comments on the Sharesies Facebook page (yeah, there are plenty from me too, as you would no doubt expect). Some of the more naive investors are already selling everything up and closing their accounts (yes, I have pointed out that this is probably not a good idea right now), others who are investing in US, are looking to move to Hatch. I think Sharesies have seriously misjudged their customer base with this. They have screwed their hopes of engaging current customers with their upcoming KiwiSaver launch too.
Dumb move and **** bag timing.
P.S. Anyone use Tiger Brokers? They are planning on introducing NZX soon, according to the person I just chatted with. There is also a sign up bonus $50 stock voucher via MoneyHub until the end of December.
At the end of the day they are not a charity and the old fee structure meant their net loss was about twice the income they brought in.
preferable for them to change their fees than go bankrupt and close up shop