I have started to build my own holdings with intent to own shares in the top 1500 of the ASX. To date, have used Chess sponsor brokers only (accounts with Stake for $3 brokerage and OpenTrader for $5) however also have an account with Superhero which may or may not use.
Given the minimum parcel size is $500 for Chess brokers, I have been reducing initial $500 holdings down to a $50 holding to be eligible for SPPs and entitlement offers. The downside to reducing the holding is the second lot of brokerage and the risk of loss if share price decreases once the initial stake is purchased. OpenTrader allows for a stop-loss to be put on, which can mitigate the risk of loss somewhat, however you need to be quick to put on once share purchases go through. Stake doesn't offer this function, which can result in more downside risk despite their lower brokerage. Has anyone found a good solution to the loss risk if you are reducing your initial holding?
So far, the best SPP by far has been IVZ - 10c raise and is currently 15c. Options thrown in are already in the money with a strike price of 14c. Would love to see more SPPs have options to keep investors interested in the company and less likely to cash out quickly.
Two new SPPs today in NIC and JAT. Both raises are basically at their trading price without options so not particularly attractive. I hold JAT (not NIC) and wouldn't want to risk any more in this dog company anyway.
Will be keeping an eye on how others go on this thread - hopefully more SPPs like IVZ are round the corner.
