Easy Equities good or bad?

[zerocool2009]

You provide zero context so how can anyone express judgement, what ETF is it? Different funds have different dividend payouts based on sector, asset class, etc. Your broker can either charge the issuer fees on distribution of dividends or before it - this will be included in the total investment charge (TIC) of the fund. This fee isn't absorbed by the broker, it's paid to the issuer. Then there's also dividend withholding tax, which the broker has no control over either. So you don't know what you're on about

Ok mr know it all. I have funds which never pays out any dividends.

So, the day when you sell, you gonna be hit with a huge bill?

Sorry for my silly or dumb questions hey

 

[jman]

How can fees be charged before as they have no idea how much it is? TFA's are also tax free. I'd just like any investment platform to be open and transparent, and taking fees off dividends also means you're being cheated on your tax free benefit as you can't deposit that money back without it affecting your contribution.

Fees are quoted in a retrospective way.

And dividends don't impact your contribution amount in any way

 

[Hamster]

I didn’t read all of the above but the only time EE charges you a fee is when you buy/sell.

TFSA’s are free of local tax. If you are receiving dividends from a fund which holds foreign companies, the portion of dividends paid out by those companies are still taxed by that government.

In other words: if Microsoft pays dividends, Trump takes his share regardless of whether you hold it in a South African TFSA or not.

If there are fees I’m not aware off I’d love to know.

 

[Speedster]

I didn’t read all of the above but the only time EE charges you a fee is when you buy/sell.

TFSA’s are free of local tax. If you are receiving dividends from a fund which holds foreign companies, the portion of dividends paid out by those companies are still taxed by that government.

In other words: if Microsoft pays dividends, Trump takes his share regardless of whether you hold it in a South African TFSA or not.

If there are fees I’m not aware off I’d love to know.

I'm expecting a dividend payout this week (Satrix Divi). I'll have a look to see what fees are charged

 

[Swa]

Fees are quoted in a retrospective way.

Yeah I know and that is my point. You only end up paying it when dividends pay out or when the money lands in your account. So it is effectively hidden and you can end up with a huge bill shock.

And dividends don't impact your contribution amount in any way

They do if you end up with less rather than having the fees go off from your main account. You can't replace the missing portion from your dividends without affecting your contribution.

 

[shooter_za]

They added a new section (36) about lending out your shares. I don't fully understand the risks. You can opt out: https://resources.easyequities.co.za/EasyEquities_Terms&Conditions.pdf

"A new clause 36 (Automatic Securities Lending)has been insertedto include the terms and conditions in terms of which EasyEquities may automatically borrow the Whole Securities in your Account against payment to you of a Securities Lending Fee. For further information, please read this clause 36 in the Contract and the summary guide as published on the Platform"

I also got a few international ETF dividend payouts the last few days. No EE fees.

 

[zerocool2009]

They added a new section (36) about lending out your shares. I don't fully understand the risks. You can opt out: https://resources.easyequities.co.za/EasyEquities_Terms&Conditions.pdf

"A new clause 36 (Automatic Securities Lending)has been insertedto include the terms and conditions in terms of which EasyEquities may automatically borrow the Whole Securities in your Account against payment to you of a Securities Lending Fee. For further information, please read this clause 36 in the Contract and the summary guide as published on the Platform"

I also got a few international ETF dividend payouts the last few days. No EE fees.

Fund fees?

 

[Düber]

They do if you end up with less rather than having the fees go off from your main account. You can't replace the missing portion from your dividends without affecting your contribution.

I'm with @Swa on this one, I would far rather pay the "fee" differently somehow and have the whole dividend reinvested.
TBH I do find EE's fee structure a little confusing, perhaps it is purposely so?

 

[shooter_za]

Fund fees?

For the SP500 one:

2020-07-20 Sygnia Itrix S&P 500 ETF-Foreign Dividends @45.59227 R413.06
2020-07-20 Foreign Dividend Withholding Tax SYG500-Foreign Dividend Withholding Tax @15.87374% -R65.57
2020-07-20 Sygnia Itrix S&P 500 ETF-Issuer Portfolio Cost @-1.6702 -R15.13

 

[zerocool2009]

For the SP500 one:

2020-07-20 Sygnia Itrix S&P 500 ETF-Foreign Dividends @45.59227 R413.06
2020-07-20 Foreign Dividend Withholding Tax SYG500-Foreign Dividend Withholding Tax @15.87374% -R65.57
2020-07-20 Sygnia Itrix S&P 500 ETF-Issuer Portfolio Cost @-1.6702 -R15.13

Last line : its the cost for having the fund (or rather, the charge from Sygnia towards EE)

 

[jman]

I didn’t read all of the above but the only time EE charges you a fee is when you buy/sell.

TFSA’s are free of local tax. If you are receiving dividends from a fund which holds foreign companies, the portion of dividends paid out by those companies are still taxed by that government.

In other words: if Microsoft pays dividends, Trump takes his share regardless of whether you hold it in a South African TFSA or not.

If there are fees I’m not aware off I’d love to know.

Exactly this. The fee that is being questioned is the issuer portfolio fee which is being shown as a line item on EE when divided distribution is done. EE doesn't take this, it's paid to the issuer of the fund. And that's the TER of the fund, it's just how it works

 

[jman]

For the SP500 one:

2020-07-20 Sygnia Itrix S&P 500 ETF-Foreign Dividends @45.59227 R413.06
2020-07-20 Foreign Dividend Withholding Tax SYG500-Foreign Dividend Withholding Tax @15.87374% -R65.57
2020-07-20 Sygnia Itrix S&P 500 ETF-Issuer Portfolio Cost @-1.6702 -R15.13

This is correct. TFSA's are exempt from local divided withholding tax, not international. And the portfolio cost is the cost of the fund, it would be the same via any broker

 

[zerocool2009]

This is correct. TFSA's are exempt from local divided withholding tax, not international. And the portfolio cost is the cost of the fund, it would be the same via any broker

Clearly you missed my point I wanted to make hey sparkie!

Time to review my tfsa again!!!!

My motto: Invest at zero Costs (including A N Y fund costs, where applicable).

In my case now with EE... what a waste

 

[Speedster]

Clearly you missed my point I wanted to make hey sparkie!

Time to review my tfsa again!!!!

My motto: Invest at zero Costs (including A N Y fund costs, where applicable).

In my case now with EE... what a waste

Clearly you missed their point zero. It's not EE that takes the fee.

 

[zerocool2009]

Clearly you missed their point zero. It's not EE that takes the fee.

Not really. Lets take Allan Grey, investing directly with them, zero costs (AG funds)

My problem is, I have high performing funds with EE with zero dividends. So when I sell in time, a huge bill awaits

Everyone raved so about EE, couldnt believe this question related to fund fees never been asked

Sorry again if this was a dumb question

 

[Speedster]

Not really. Lets take Allan Grey, investing directly with them, zero costs (AG funds)

My problem is, I have high performing funds with EE with zero dividends. So when I sell in time, a huge bill awaits

Everyone raved so about EE, couldnt believe this question related to fund fees never been asked

Sorry again if this was a dumb question

You still dont get it. This dividend fee will be charged on any platform you use.

 

[zerocool2009]

You still dont get it. This dividend fee will be charged on any platform you use.

So is the answer to rather move my tfsa to my tfsa fixed interest account ? Zero fees for sure on that side

 

[Hamster]

My motto: Invest at zero Costs (including A N Y fund costs, where applicable).

You go any cheaper and your looking at a cash investment at Tyme Bank or a scam

The issuers can potentially give you a cheaper price by waving the fund fees. Satrix does it I believe but screws you over with platform fees. I think your only other option is Sygnia.

You'll never get 100% free. Somebody has to pay the salaries of the guys working in the platform, the call centre guys etc.

 

[Hamster]

Not really. Lets take Allan Grey, investing directly with them, zero costs (AG funds)

I have an AG Balanced fund and those ****ers charge performance fees when/if eventually their glorious fund actually starts masking money

 

[shooter_za]

I’ve sold ETF’s before that pay no dividends like SA bond and money market. No surprise fees.