That figure is distorted by huge institutional trade numbers...

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8horse

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12/02/20

09:08

Post #: 42877843
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Originally posted by danbradster ↑

From the ASX Group reports:

Cash Market
Average trade size: $3835
Average trading fee per dollar of value (bps) 0.37 = 0.0037%
$0.142 fee charged per average $3835 share trade?

That's not to say that SWF's brokerage costs are anything like that, since OM have a business to run. I'm also not certain whether 'Cash Market Trades' is even the right number to represent broker trades, since I find their reports confusing, and it could include something else mixed into that number.

But if it's right, then it's interesting.

SelfWealth decided that for the advisor platform, flat brokerage only goes up to $70k trades, and $100k for example is charged 2 brokerages.

So a $70,000 trade for example would incur $2.59 due to the ASX instead of $0.14 for an average $3800 trade (unless ASX has fee tiers). So OM might charge $5 for small trades and $7 for $70,000 trades, for example. Call it something like $4.50+0.0037%.

For the retail platform, SWF would likely start losing money on the brokerage around the $100,000-200,000 trade size mark.

That roughly aligns with that I had already speculated, since the $70,000 limit on the advisor platform suggests that they still make money at $70k, but start losing money at some point above that.

Expand

That figure is distorted by huge institutional trade numbers especially bots.
The numbers of trade from Institutions accounted for 93.5% of the total trade numbers, all retail trade numbers were only around 3.5%.
Total trade numbers for 2019, were 1,071m trades, average daily trade numbers: 4.25m.

SWF Price at posting: 15.5¢ Sentiment: None Disclosure: Held
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0 Great analysis

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That figure is distorted by huge institutional trade numbers...

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