This is in the stock exchange thread.

I disagree with this point. Brokerage houses should set whatever rates they want to set. If they want to provide service for almost free, they should be allowed to for healthy competition. I don't understand why there must be a minimum, because minimum only protects big brokerage houses, not the smaller ones who can offer cheaper alternatives like just online trading only and minimum broker calling services.

To be honest, when it was announced during the budget the new rates will apply from Jan onwards, there was no further clarification and even the brokerage houses couldn't confirm the actual rate until the last possible moment.

Wow, now that is what I've never heard before. Long term buyers causing bubbles? Maybe commoddities but never share markets.

Only effect long term buyers will do is bring up to a price of a counter to where it becomes the actual price they deemed perfect for their share before they sell it. Long term buyers have no reason to keep a share once it reaches their target, and more long term buyers will not pay more than what they think the share is worth.

Bubbles are caused by speculation that something would be worth more tomorrow than what it is today, without any valuation of what the underlying principle of what the item is valuated at other than it's past price.

Ever heard of the village and the monkeys story? That is how a bubble is formed.

Long term buyers do not create bubbles.

This post has been edited by skiddtrader: Jun 20 2008, 04:14 PM

Actually I quoted the wrong story for an example of bubbles. It should've been the Dutch Tulip story found here.

While the Monkey Story actually relate more to syndicate play and people's greed. The story is here.

Sorry for the mistake of the story. ^^

No, they are not overcharging. Minimum charges for any transaction can be from RM12 for online (no assistance) to RM40 for broker assist.

Which is why it is important to know that your profits is enough to cover your minimum brokerages.

Your total transaction of RM80 will incur the minimum charges for sure whether if its RM12 or RM40.

Different brokers got different charges. I'm not sure how much TA us charging, but if you can check to see if they charge differently for their online transaction from their website or something.