Current old system of Rm12. I always make sure the transaction will be 2.8K or above, (sometimes, play small small for fun leh, like buying Airasia 2k shares like that)
2.8K x 0.42 = 11.8, <-- so minimum Rm12

But next year or 2 weeks from now,
You need 9K as Low yat82 said
9K x 0.42 = 37.8 <-- min Rm40

So next year, one needs to trade above 9K to get an effective rate of 0.42%, other below that, your effective commission is higher than 0.42%.


RM40 is the minimum brokerage fee, FYI.

This post has been edited by cherroy: Dec 20 2007, 10:16 AM

I fully understand your above statement, just normally I want to purchase a shares of 25K, I can or normally split it to several transaction or buying piece by piece. Just like your above YTLPower case, I can always buy a few lot first before committing fully and finally.

Eg. I have 25K allocated for this shares, I can buy 1-2 lots first, to see whether the stock will drop further or not, if it drops to 2.48 then I can buy 1-2 more lot to and if it still going down to 2.30, I can buy more and make up my initial intended purchase of 10 lot (x1000).
Now with new system, I need to buy at least 4 lots and above as even I buy it at 2.48 with 1 lot afterwards, it is same as buying 2.50 with more lots one. So basically I got only 2 times to do it.
In this way, my exposure and risk is increase espeically in downwards market trend. I cannot opt to buy over a longer period of time, I need to make the purchase at 1 shot and more decisive.

It would have detrimental effect on the small retailers. If one only has 1K of capital, he/she wants to purchase stock then effectively with RM40 min, the total transaction cost is 8%, that's mean the shares he/she bought need to appreciate more than 9% before starting to gain any money. It is not easy for a stock to go up more than 9%. Over long run, may be, short term, a daunting task.

I am not against totally or purely the Rm40 min, but I am upset with the Rm40 together with the 100/lot as well as allow stock split which make a lot of shares trading at few ten cents only.
Just like Tsarena case, he/she sold the Sinopec (through queue, at last minute somebody only buy 100 shares from the queue). The sold price is RM0.22 but only 100 share (1 lot) done, so the effective selling price become Rm0.095 due to the minumum set. Is it that fair?
Sometimes, it is not we don't want to make the transaction amount more, it is the counterparty (buyer/seller side) that don't want to do it, just like Tsarena case)

Just like my above mentioned case, it does affect quite much especially the CWs are issued at a few cent to ten cents only and trade in 100 shares/lot. If the KLSE just like when 1990's where you seldom see shares are trading below Rm1 and with 1000 share/lot then the Rm40 is not an issue there. But there are plenty of penny stocks and trade in 100 shares/lot.
If they said the Rm40 is meant to discourage small retailers participate in penny stocks or trading, then fine, no problem. But KLSE now is keen to promote small retailers to participate (the reason why BursaPursuit contest as well), then said want to implement Rm40. It somehow feel like somebody persuade you to come in their house to play, then give slap on your face.

But I totally agree don't risk more for the sake of lowering commission. Just pointed out the RM40 does have signifcant effect on small transaction. One doesn't necessary to trade more 9K & above, but for my future investment, it does affect my decision as I am not big fish leh.

This post has been edited by cherroy: Dec 20 2007, 12:58 PM

There are plenty of jokers around, really, if you watch carefully even on blue chips counters, to make index slight higher for the closing.

Yup. Can be varied but mostly are on this range.

Day trade means you buy and sell within the same day, no balance carries forwards.