Easy Equities good or bad?

[zerocool2009]

I just think I am sad because I waited for my first dividends to be paid out after my TFSA move (and it was a low blow => as in Dividends - non visible fees = Your reward) ... which is peanuts.

Sorry for all the "kerm" guys

 

[wcm]

I agree with @zerocool2009, why not be upfront about the costs/fees for the TFSA ? Surely EE can add in a breakdown or more information on the dividends pay out

 

[Speedster]

I agree with @zerocool2009, why not be upfront about the costs/fees for the TFSA ? Surely EE can add in a breakdown or more information on the dividends pay out

This fee isn't charged by EE...

 

[zerocool2009]

This fee isn't charged by EE...

I do agree it aint from EE side. I have ALOT of investments, and all fees are visible. Just sad in the sense (as I said), all dividends payments will go towards fees hey. Sorry for going on and on about this. Let me zip up or man up !

 

[jman]

If you don't want to see a fee, buy a total return ETF like Satrix World

 

[zerocool2009]

Ok .... some more dividends come in today. The fund isnt within the TFSA product but normal EE. Its double the value of the fund where I got so little dividends out, and the COST .... R1.75 (I can live with that).

Looking now more in detail :
Satrix INDI fund costs R1.75
Satrix Top 40 : Fund costs (not even listed).

And I am sure the Satrix Top 40 should have FUND fees without a doubt

 

[Excalibur]

 

[Dylan_G]

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Its an absolute shitstorm on Twitter.

EE trying (and failing) to make it look better.



Turns out, if you unsubscribed from their (marketing?) mails... you wouldn't have got the Tc&Cs update... where they tell you they will be using your securities to lend to others.

 

[The_Ogre]

They borrow it from you at a fee:

A new clause 36 (Automatic Securities Lending) has been inserted to 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.

 

[zerocool2009]

LOL ... this is how VBS started.

Take money => "I owe you letter back on a piece of paper" ...

 

[mr_norris]

I don't understand people being upset about it. Yes, if you didn't get the mail and read it, that's a concern, but otherwise if you don't like what they are doing, you can still opt out. And EE aren't the only brokers who do this sort of thing.

 

[Arthur AnymoreDonuts]

Wow, I don't know how I feel about this. Just started with EE three months ago, and now this. I'm not even sure if I accepted the T & C's of this.

 

[zerocool2009]

I got the news letter, but wasnt prompted at ALL

 

[TeMoeg]

Easy Equities: "If you do not agree with our T's & C's as a whole, then you unfortunately cannot use our platform."

There may be guys wanting to sell and get out while they can. They will find out that they have no control over the selling price of their equities, as EE retains the right to use their own discretion on all transactions (Investors may only nominate the total amount to be invested, and have no control over the number of equities, or price per equity).

Such investors will surely lose out on such transactions. In my view, such investors have been scammed. I define a scam as an activity where a person finds out too late to reverse, that it is inevitable to not lose money, no matter how you react.

 

[Speedster]

They borrow it from you at a fee:

Any idea what the fee is?

 

[The_Ogre]

Any idea what the fee is?

No idea

 

[Speedster]

No idea

You'd think this is a crucial little bit of info. I'm very happy to let them loan out my portfolio for an appropriate fee. If the fee is basically zero I'm opting out though.

 

[3WA]

Any idea what the fee is?

60% of what the borrower pays.

Securities Lending on EasyEquities

EasyEquities allows you to earn additional income on your holdings on our platform through Securities Lending. What is Securities Lending? Securities lending is the term used to describe the process where investors make short-term loans of the ...

support.easyequities.co.za

 

[The_Ogre]

You'd think this is a crucial little bit of info. Ink very happy to let them loan out my portfolio for an appropriate fee. If the fee is basically zero I'm opting out though.

Oooh, nice!
There's actually no risk involved in this if the way they've worded the contract is correct:

Is there any risk associated with lending out my holdings?

The main risk is that we are not able to return equivalent Whole Securities to you when the loan is terminated. To combat this risk, we provide you with Equity Collateral to the value of 115% of your Whole Securities and/or FWT Cash Collateral and we cede to you our rights under a Third Party Borrower Guarantee. This means that you are fully collateralised (ie covered) in the event that we are not able to return equivalent Whole Securities to you when the loan is terminated.

 

[mr_norris]

Oooh, nice!
There's actually no risk involved in this if the way they've worded the contract is correct:

Is there any risk associated with lending out my holdings?

The main risk is that we are not able to return equivalent Whole Securities to you when the loan is terminated. To combat this risk, we provide you with Equity Collateral to the value of 115% of your Whole Securities and/or FWT Cash Collateral and we cede to you our rights under a Third Party Borrower Guarantee. This means that you are fully collateralised (ie covered) in the event that we are not able to return equivalent Whole Securities to you when the loan is terminated.

And this is why I don't get why people are raging and kicking up such a fuss. From what I understand:

* There is risk, but that is covered
* You get money out of it
* You can opt out if you choose

Someone in another thread mentioned their way of handling it could be better, and I more or less agree with him as I understand what works for me works for everyone. But what I don't get is this jumping the bandwagon to find an alternative broker because of this. From what I understand so far, it's really being blown out of proportion.