Easy Equities good or bad?

InTheWild

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My transfer from ABSA stockbrokers to Easy Equities was completed this morning.

Just beware. The transfer cost is R170 per share transfer. I held 7 different shares so paid up R1190. Quite a shock. I thought it would be R170 for the portfolio, but alas, not so fast. It seems that this is the Computershare transfer cost, independent from ABSA Stockbrokers so probably everyone (I think?) will be paying this price.

Still have to see if ABSA will charge me their annual fee.

This does not sound right. Would be interested to see what the others have paid for transferring their shares.
 

borga

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My transfer from ABSA stockbrokers to Easy Equities was completed this morning.

Just beware. The transfer cost is R170 per share transfer. I held 7 different shares so paid up R1190. Quite a shock. I thought it would be R170 for the portfolio, but alas, not so fast. It seems that this is the Computershare transfer cost, independent from ABSA Stockbrokers so probably everyone (I think?) will be paying this price.

Still have to see if ABSA will charge me their annual fee.

Satrix also have a note stating "R171 (Incl. VAT) will be charged by the administrator per transaction" so I believe the cost related to the administration of the transfer of broker at the shares registrar and not with the broker.
 

InTheWild

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Ok, so I've been playing around with EE's platform and its damn easy and convenient.

There is one thing that still bothers me. It does not seem that the shares are registered in your name under the JSE Strate register even if you hold whole shares. I'm not a share and JSE expert, so could someone make some sense of this?

Here is an extract from Easy Equities:

"EasyEquities has to comply with certain regulations regarding the requirement to have adequate net capital and asset protection. GT247.com segregates your securities holdings and cash in your account, meaning it keeps your assets separate from the company's own assets. In addition, EasyEquities will hold all client assets in First World Trader Nominees (Proprietary) Limited, which is a ring fenced, private, limited liability company with registration number 2013/091397/07, registered in accordance with the company laws of South Africa and approved as a nominee company to hold assets in its name on behalf of clients by the FSB. When you purchase Whole Securities, you become the beneficial (true) owner of all those Whole Securities, which will be held by FWT Nominees on your behalf. FWT will ensure that you are reflected as the beneficial owner of your Whole Securities in our books of account."

Not so with etfSA, Extract from etfSA:

"All ETF securities are registered in your name on the STRATE register and you have full title to such publicly listed fully negotiable ETF instruments"

I'm only buying etf's at the moment, hence my comparison with etfSA
 
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Freaksta

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My transfer from ABSA stockbrokers to Easy Equities was completed this morning.

Just beware. The transfer cost is R170 per share transfer. I held 7 different shares so paid up R1190. Quite a shock. I thought it would be R170 for the portfolio, but alas, not so fast. It seems that this is the Computershare transfer cost, independent from ABSA Stockbrokers so probably everyone (I think?) will be paying this price.

Still have to see if ABSA will charge me their annual fee.

That's really quick! I followed up with my transfer today because I haven't heard from ETFSA.
 

InTheWild

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Just a heads up to the guys using EE.

It looks like the full shares are held at Strate under FWT (First World Trader) and only in FWT's books you are noted as the owner. Not really sure if this is even a real issue, but worth noting.

EE does not charge the normal STRATE fee as per all the other brokers.

I have sent them a query re this, got a first reply saying strate is included in the 0.25% transfer costs (0.25% is standard across brokers and set by the JSE), in which I corrected them in saying according to my knowledge its not. Now waiting on their next reply.
 

lucifir

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First World Trader is basically GT247.com , so is it safe to assume that the shares are not housed at the JSE like with other brokers??
Is this even allowed by the JSE??
 

Freaksta

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First World Trader is basically GT247.com , so is it safe to assume that the shares are not housed at the JSE like with other brokers??
Is this even allowed by the JSE??

Definitely need more info with this.. I dont want them going boom and then we as investors have no recourse because our shares are registered in the companies name and not ours.
 

InTheWild

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Definitely need more info with this.. I dont want them going boom and then we as investors have no recourse because our shares are registered in the companies name and not ours.

latest response from the EE sales consultant:

"We do charge a STRATE a flat rate on STRATE of 0.075% of the value traded, our STRATE fee is indicated on the SETTLEMENT AND ADMINISTRATION FEE. I hope this does answer your question. "

Still doesn't make sense to me to be honest, the Strate fee on all other brokers ar R10.92 minimum and it seems to be regulated or something
 

InTheWild

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Although when you buy, the note on the settlement and admin fee says:

"This fee is charged at flat rate of 0.075% of the value traded, ensuring the lowest possible cost to the investor.
This fee includes the electronic settlement of your transactions through the electronic settlement authority for whole shares and the administration fee represents an upfront recovery on the fractional share rights (FSRs) portion."

So who knows how they got around the min R10.92.
 

InTheWild

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ON FAQ: How are my assets protected?

"EasyEquities has to comply with certain regulations regarding the requirement to have adequate net capital and asset protection. GT247.com segregates your securities holdings and cash in your account, meaning it keeps your assets separate from the company's own assets. In addition, EasyEquities will hold all client assets in First World Trader Nominees (Proprietary) Limited, which is a ring fenced, private, limited liability company with registration number 2013/091397/07, registered in accordance with the company laws of South Africa and approved as a nominee company to hold assets in its name on behalf of clients by the FSB. When you purchase Whole Securities, you become the beneficial (true) owner of all those Whole Securities, which will be held by FWT Nominees on your behalf. FWT will ensure that you are reflected as the beneficial owner of your Whole Securities in our books of account."

Are they then holding the shares?
 
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czc

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Well this is an extract from the bottom of their main page:

GT247.com acts as principal to a contract for difference issued to the investor, where the investor will have a contractual claim against GT247.com to the economic benefits and risks associated with share ownership (price movements and dividends) without having ownership rights in the underlying share.

Sounds to me like they own the share and you just reap the benefits?
 

lucifir

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Well this is an extract from the bottom of their main page:



Sounds to me like they own the share and you just reap the benefits?

That makes sense for CFD(Contract for Difference), which is what you quoted.
We are trying to figure out what they do with actual shares, which so far, seems like they own and have you listed as the owner on their books, which I do not trust, so will have to give them a pass until they change that.
 

Renier

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Sounds like the shares are held by a separate ring-fenced company. So even if GT247 goes out-of-business the shares will be protected in the FWT Nominees company.
 

lucifir

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GT247 is FWT ... so I would not be so sure about the "ring-fenced" company
 

Renier

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GT247 is FWT. The ring-fenced company is FWT Nominees (Pty) Ltd.
 
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InTheWild

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So with that Halloween stunt, EE gave R50 worth of purple group shares away to each EE customer.

So mine came through this morning, but they just loaded cash (R50+costs) to my account and said in a email click this link to buy purple group.

What did I do? - I bought some DBX world with their R50 :whistling:
 

shooter69

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Instead of R50 I bought R100 worth of Purple group shares. They own easy equities and if the EE turns out to be true an honest, they could drive the purple group stock up as I believe that EE is a very good concept.
 

InTheWild

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Instead of R50 I bought R100 worth of Purple group shares. They own easy equities and if the EE turns out to be true an honest, they could drive the purple group stock up as I believe that EE is a very good concept.

Nice, gald to see they came through with the R50. Would be interested to see how many people is using EE by now.
 
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