A full service broker will charge more but they can also give you advice on what to buy and sell. The law requires brokers to have a reasonable basis for any recommendation they make to you. They must also tell you about any interests they have in investment decisions which they recommend to you.
Brokerage fees are usually based on a percentage of the value of the purchase or sale. The percentage typically reduces as the amount of the transaction gets bigger. Most brokers have a minimum fee which they charge. Typically, the fee on a transaction of up to $5000 will be 2.5%. For large trades, it may only be 0.1%. Small trades worth a few thousand dollars can therefore be relatively expensive. Most share transactions are paperless transactions, which are completed electronically through CREST. CREST automatically deducts the Stamp Duty Reserve Tax and sends it to us. Your stock broker will settle up with CREST for the cost of the shares and the Stamp Duty Reserve Tax and then bill you for these and the brokerís fees. how to purchase shares. purchase shares