Absolute beginner's question - looking for advice r.e. selling shares

[olviersue]

Hi there,

I posted a month or so ago to this sub and got some very helpful responses, so I'm wondering if you guys could help me out one final time.

Basically I've got 150 shares in Telstra which I am looking to sell. I have the ability to sell these for a fee of $56. Is this a fair price? Do stockbrokers offer a cheaper alternative? Where do I even start looking for a stockbroker?

Sorry about the noob question, I've basically just been thrown into this situation very recently and, clearly, don't have any experience whatsoever. If anyone could grant me some advice, I would be ever so appreciative.

Thanks!

 

[carlossantana305]

@olviersue Which broker are the shares currently held at?

150 telstra shares @ $6.30 = $945

Does this amount seem correct?

Most aussie brokers will charge $11-$20 to sell that amount assuming these are shares held in an individual name. Who is charging $56?

Are they currently chess sponsored?

 

[voiceinstallation]

@olviersue I'm guessing you don't have a broker and this is a one-off sale from SRN? That would explain why the cost of sale is so high. Most brokers wouldn't charge you more than $30 for that sale (provided it's CHESS sponsored), and there are some that would cost only around $10.

Hence, I think you're issuer sponsored. Are your stocks currently held at a registry with a reference number starting with "i"? Or do you have a HIN with a broker/bank?

 

[olviersue]

@voiceinstallation This guy! ...or girl!
the shares are issuer sponsored. What do? How do I find a fair and respectable broker?

 

[voiceinstallation]

@olviersue You're looking for a "Sell-Only Service". For some reason I can't find CMC's fees for it but they generally have much lower rates than the big 4 banks (which are charging around $55).

http://www.cmcmarkets.com.au/en/stockbroking/sell-only-service

Maybe call them quickly and ask how much they're charging. CMC Markets is known to have one of the lowest fees. Another is OptionsXpress.

 

[cadi]

@olviersue I thought, 'that would be a commsec "guest" trade" but checked and theirs is $66! Trader dealer is $100! +gst.

$56 is still expensive. If you have the time open an account with the cheapest broker you can find.

 

[carlossantana305]

@cadi The more I read it, the more I think it is a friend or family member who wanted to buy them because $55 is the cost of an off market transfer. Who knows though. OP has gone silent.

 

[olviersue]

@carlossantana305 I'm sorry! I'm at work. It's definitely not a family member though. The shares are in a share registry.

 

[carlossantana305]

@olviersue How did you get the shares? Surely you bought them through a broker?

If you seriously don't remember what broker...

Open an account with any broker (cmc markets is the cheapest, but NAB or bell direct are pretty cheap also.)

Actually Commsec are doing $600 free brokerage right now:
https://www.commsec.com.au/homeoffer?icid=90002-public-home-eqcdia-offer

sign up.. request to transfer the shares and sell for free.

 

[olviersue]

@carlossantana305 Sorry, need to elaborate - these shares were given to me when I was 9 by my mother, and my mother has since passed away. This is the first I've actually done anything with them.

vis a vis the Commsec thing - so that would be completely free to sell them? Even if the shares are worth more than $600?

 

[carlossantana305]

@olviersue Ok so first you have to work out whether the shares are in your name.

If you are a minor or they were bought for you as a minor then you may have difficulty transferring them around as technically you can't own shares until you are 18, they are held for you by a trustee.

When you log onto the share registry does it say you name and just your name?

Second make sure the address they have for you on the share registry is correct.

Next Open an account at commsec using that link so you get the $600 free brokerage.

Brokerage is the amount you pay to buy or sell a stock. Commsec is normally $19.95/trade, so after your 1 sell you will have $580.05 of free brokerage left. In theory you can make 30 free trades (however limit is 3 months I think).

Once you have your commsec account. (this may take a few days)

Login into commsec -> click view holdings -> click transfer

on this page there is some information you fill out that you can find from your share registry. Transfer process may take a few days.

You can then sell them for free.

If you need help during the process, commsec will be more than happy to walk you through the process give them a call (just make sure to quote the $600 free brokerage or sign up using that link.)

PM if you need any help.

 

[olviersue]

@carlossantana305 YOU ARE AMAZING

 

[carlossantana305]

@olviersue No worries. A few caveats:

• Transfers will fail if your name and address don't match exactly to so make sure they do. (ie name and address at the share registry is the same that you use for commsec)
• ASX Shares are settled on a T+3 basis. This means that you have 3 days to pay after you buy and you don't receive money from sales for 3 days. Don't panic if you don't see your money for 3 days after you sell!

 

[olviersue]

@carlossantana305 cheers again. just in the process of transferring them now, had to wait for a dividend statement for all my details. will respond again once I finally complete this task (god willing). changing the address of a deceased estate has been a nightmare. thank you so much for your help though, really can't express that enough.

 

[carlossantana305]

@olviersue Always here to help. Let me know if you have any other questions.