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Friday 03 September 2010

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Costs

Raising equity for local SMEs, Investbx incorporates a stock market for West Midlands based companies. Investbx share dealing and investment advice services are provided and administered by The Share Centre Limited

Dealing charges

Real-time purchase and sales, 1% of the deal's consideration, minimum £12.50.

Trader option

You can buy or sell shares up to the value of £25,000 for a flat dealing commission of £8.50. Deals over this size are charged at an additional £8.50 per £25,000 of value. The Trader option costs just £20 + VAT each quarter in advance, no matter how many accounts you've got. Dealing Charges Calculator.

Examples

Standard tariff:
Your dealing charges will be related directly to the amount you invest, or the proceeds of a sale, as shown below. Real-time sales and purchases online, start from £12.50.

Let's say you want to buy some shares in ABC plc. The shares can be bought for 100p each, and you want to invest £1500, inclusive of dealing charges and stamp duty.

Stamp duty is 0.5% of the purchase value and dealing commission on the standard tariff is 1%, minimum £12.50.


Cost of shares  £1477.00  (1477 shares at 100p each)
Stamp duty              £7.39  (£1477 x 0.5%)
Commission           £14.77  (£1477 x 1.0%)
Total Cost          £1499.16

Trader option:
Let's say you want to buy some shares in XYZ plc. The shares can be bought for 100p each, and you want to invest £5,000 inclusive of dealing charges and stamp duty.

Stamp duty is 0.5% of the purchase value and dealing commission is £8.50 fixed.

Cost of shares   £4,966.00  (4966 shares at 100p each)
Stamp duty              £24.83  (£4966 x 0.5%)
Commission               £8.50
Total Cost            £4,999.33

Had you bought these shares under the standard tariff, dealing commission would have been £49.26 and you'd only have bought 4,926 shares. So even if this was your only transaction in that quarter, your £20.00 fee (+ VAT) would still have saved you £18.26.

Stamp Duty
0.5% payable on the purchase of UK-listed shares. Other rates may apply outside the UK.

PTM Levy
£1 on all transactions over £10,000

Quarterly re-investment
0.5% including VAT, plus Stamp Duty. The amount available for reinvestment is made up from dividend income, credit interest and dealing commission credit.  A minimum of £1.00 applies if your contract note is sent by post.  No minimum applies if your conract is sent by email.  Balances below £10.00 will not be reinvested.

Preferred Funds
Purchases of The Share Centre's Preferred Funds are commission-free.

Unit trusts and OEICs
Any discount we negotiate for you on the initial fee will be used to buy additional units.

Subscription fee

£2.50 plus VAT per quarter, payable in advance

What this fee covers for you:

  • A 6-monthly statement of your account by email or post
  • Annual Consolidated Tax Certificate (CTC), summarising all your account income
  • Safe keeping of your investments, so you don't face potential costs and delays because of lost certificates
  • Quarterly income withdrawal direct to your bank account

Behind the scenes:

  • Handling of Rights Issues and other Corporate Actions that affect your shares Monitoring your price limits, stop-loss and tracking stop-loss limits for up to 30 days.

Credit interest Account holders who are resident in the UK for tax purposes will receive interest on cash balances held in their account, paid at the Bank of Scotland Base Rate less 3.5%. Interest is paid gross of UK Income Tax and is credited to your account in January, April, July and October.

Administration fees

Cash transfer:
                              to your home by cheque               £5.00 
                              to your bank; 3 day transfer         free 
                                                    same day transfer   £25.00
                                                    overseas                 £50.00

Share transfer - for each shareholding:
                              transferred in                                free 
                              transferred out                              £15.00

Handling a bounced cheque or unpaid direct debit     £15.00
Probate valuation                                                         £20.00

These fees include VAT where applicable

© copyright Investbx 2010

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