BROKERAGE
6 May 2016 By PDSNETThe stockbroker's fee for completing a share transaction. Brokerage is usually calculated on a sliding scale depending on the total value of the transaction. Since deregulation of the JSE in November 1995 stockbrokers now set their own individual rates and compete with each other. The highest brokerage is paid on the first R5 000 or R10 000 of any transaction - whereas amounts over R1, 5 million are charged at a much lower rates. Brokerage is one element of the dealing costs of buying and selling shares. As a general rule of thumb you can allow about 2% dealing costs when you buy and 1% when you sell. You should try to avoid buying or selling shares for less than R10 000 - because that will make your brokerage a much larger percentage of your transaction value and therefore make it more difficult for the investment to go "into the money".
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