BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
    You are in: Programmes: Working Lunch  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
 Working Lunch Friday, 17 January, 2003, 17:39 GMT
Money for nothing?
T D Waterhouse website
T D Waterhouse has introduced a new fee
It's bad enough when your shares are plunging, but being charged for the privilege of sitting back and watching them fall rubs salt into the wound.

One of the big names, T D Waterhouse, has joined the ranks of brokers which have introduced an inactivity fee - that's effectively charging customers for not doing anything.

The move concerns people who have bought shares through the broker and keep them in its nominee account - where the broker holds shares on your behalf.

T D Waterhouse is saying that if you don't do any trading, you will be charged a quarterly fee.

The people most likely to be affected are small shareholders - like the Working Lunch viewers who've been in touch with us about this.

Climate

But in the current climate it's those smaller investors who are likely to be waiting to see where the market's heading before they resume trading.

For share nominee accounts with less than 5,000 of cash or shares in them there will now be an inactivity fee of 11.75 per quarter.

The company says shares can be expensive to run and nominee accounts do involve administration costs for the broker in order to make things simpler for customers.

Angus Rigby, T D Waterhouse
Angus Rigby: "We have to cover costs"
"There's a significant infrastructure we support so that our customers can do all of the activities we allow them to do," says T D Waterhouse's Angus Rigby.

But unfortunately we have to pay for that and we can't penalise the customers that are trading or are holding sufficient equities or cash so that we are covering our costs of providing all of these additional services whether customers trade or they don't."

How does this fee compare to other brokers?

  • Barclays Stockbrokers charges 9 per quarter which is waived if you trade
  • Charles Schwab takes 5 minimum per quarter
  • Selftrade has no charge
  • The Share Centre takes 2.50 per holding every six months.

    But don't forget there can be other charges from stockbrokers as well.

    One viewer tells us his holdings have already gone down so much, that if this charge is deducted it will take just two years for the total value to be wiped out.

  • Home
    View latest show
    About us
    Consuming Issues
    Rob on the road
    Lunch Lessons
    Guides & factsheets
    Story archive
    Names, numbers & links
    Contact us

    Watch us on BBC Two
    Monday, Tuesday, Thursday 12:30pm
    Wednesday 1:30pm
    Friday 12pm

    RELATED LINKS
    See also:

    17 Jan 03 | The markets
    Internet links:


    The BBC is not responsible for the content of external internet sites


     E-mail this story to a friend

    Links to more Working Lunch stories

    © BBC ^^ Back to top

    News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
    South Asia | UK | Business | Entertainment | Science/Nature |
    Technology | Health | Talking Point | Country Profiles | In Depth |
    Programmes