Stockbrokers' charges guide

Ready to take a punt?

by BBC Working Lunch's Adam Shaw

If you have made the decision to invest in shares and have decided which shares you want to invest in, the next big decision you face is how to buy the shares you want.

It's not as important a decision as what shares you want, but a careful choice can save you money.

Stockbrokers don't make it particularly easy to compare prices because they all have different ways of charging.

But here is an extract from our guide to some of the best-known stockbrokers and their charges.

For those buying or selling relatively small amounts of shares and by that I mean about £1,000 - you will probably be most interested in the brokers minimum commission fee.

Barclays Internet

• Minimum fee: £11.99
• Maximum fee: £39.99
• Percentage fee: 1%
• Conditions: Maximum value of internet trade is £20,000 for certificated accounts

Fees will be revised in February 2001

Barclays Phone

• Minimum fee: £17.50
• Maximum fee: no max
• Percentage fee: first £5,000 - 1.5%; next £10,000 - 0.85%; thereafter 0.5%
• Conditions: Prices shown are for certificated accounts

Charles Schwab Internet

• Minimum fee: £12 for trades up to £1,000
• Maximum fee: £50 for trades over £20,000
• Sliding scale: Fees charged at different rates depending on size of trade
• Conditions: Above fees for Market Master Account. Frequent Traders club makes an annual charge of £60. There is then a flat rate of £18 for online trading

Charles Schwab Phone

• Minimum fee: £20 for trades up to £1,000
• Maximum fee: £75 for trades over £20,000
• Sliding scale: Fees charged at different rates depending on size of trade
• Conditions: Above fees for Market Master Account. Frequent Traders club makes an annual charge of £60. There is then a flat rate of £25 for telephone trading

DLJ Direct

• Minimum fee: £14.95
• Maximum fee: £37.50
• Percentage fee: 0.75%
• Conditions: The commission rate is the same no matter how you place the deal.

E-trade

• Minimum fee: £14.95 for trades up to £1,500 - up to 30 trades
  
• Maximum fee: £19.95 for trades over £1,500 - up to 20 trades; 21st trade and more is £14.95
• Conditions: For more than 30 trades every calendar quarter, traders can join the Frequent Traders Service for £8.95 per trade.

Guy Harris Cartwright

• Minimum fee: £20
• Maximum fee: £20
• Percentage fee: flat fee
• Conditions: There is a flat fee regardless of the size of the deal. Annual fee of £35.25 for service - GHC Trade Account

Halifax Internet

• Minimum fee: £12.50 - for trades up to £2,500
• Maximum fee: £50 - for trades over £60,000
• Percentage fee: flat fee for trades over £60,000

Halifax Phone

• Minimum fee: £15 for trades up to £2,500
• Maximum fee: no maximum
• Percentage fee: 0.1% for trades over £60,000

NatWest

• Minimum fee: £15
• Maximum fee: no maximum
• Percentage fee: 1% for trades up to £4,000, thereafter 0.1%
• Conditions:The commission rate is the same, no matter how you place the trade

Selftrade - internet

• £12.50 flat online fee per trade, regardless of size.

Selftrade - phone

• £12.50 flat fee plus £5 telephone dealing fee per trade, regardless of size.

Share Centre

• Minimum fee: £2.50 to buy, £7.50 to sell, after that percentage fee applies
• Maximum fee: no maximum
• Percentage fee: 1%

Share People

• Minimum fee: £14.50 to buy, £14.50 to sell
• Maximum fee: £17.50 to sell for trades above £1,000
• Percentage fee: Flat fee for sales above £1,000

TD Waterhouse - internet

• Minimum fee: £9.75 for trades below £501
  £12.50 for trades between £501-£1,501
  £14.95 for trades between £1,501.01-£2,501
  £19.95 for trades between £2,501.01 - £4,001
• Maximum fee: £24.95 for trades above £4,001.01
• Conditions: Frequent Traders Accounts with reduced charges available on request

TD Waterhouse - phone

• Minimum fee: £15
• Maximum fee: £75
• Percentage fee: 1% commission on trades to £3,501
  0.1% for trades above
• Conditions: Frequent Traders Accounts with reduced charges available on request

Virgin

• Minimum fee: £14.95
• Maximum fee: £14.95
• Percentage fee: Flat fee

The above table is compiled from information provided to Working Lunch by each stockbroker. Charges and services can change at any time and it is important that all investors check prices and the type of service being offered, before they conduct any business with a stockbroker.