AIB Internet Banking - Share Dealing

hblock21

AIB have launched a new service on their internet banking. You can now buy and sell shares on-line. It looks interesting but I want peoples opinions, below are their pricing...how does it compare to share watch and others etc??

Commission Rates

• Trades up to EUR 25,000 charged at 1.25%
• Balance exceeding EUR 25,000 charged at 0.50%
• Minimum Commission Per Trade Cost EUR 32.00

Standard Additional Charges

Stamp duty is chargeable on the purchase of Irish and UK shares.
The rates are:

• Irish Shares : 1.0%
• UK Shares : 0.5%

There is no stamp duty payable on the purchase of shares from most other countries. The sale of shares does not incur stamp duty.

Any currency exchange deals that we conduct on behalf of our clients may include a spread to cover the risk for Goodbody Stockbrokers.

PTM Levy

Transactions in securities of companies incorporated in the United Kingdom, the Channel Islands or the Isle of Man, which exceed £10,000stg or equivalent in any other currency, attract a levy of £1.00(stg) payable to the UK Panel on Takeovers and Mergers.

ITP Levy

A flat-rate levy of EUR 1.25 is in respect of dealings in quoted securities of relevant companies is payable to the Irish Takeover Panel where the transaction consideration exceeds EUR 12,500.00.

US Charges

A charge of EUR19.05 is included on all US purchases and sales. This charge is to cover the cost of holding and transaction fees passed onto Goodbody Stockbrokers by our Custodian Agents in the US.

US transactions may also attract other minimal US Stock Exchange and Broker charges which are included in the price.

European Charges

A charge of EUR 35.00 is included on all European purchases and sales. This charge is to cover the cost of holding and transaction fees passed onto Goodbody Stockbrokers by our Custodian Agents.

Ancillary Charges

• EUR 26.00 annual account maintenance charge.
• EUR 13.00 fee to transfer shares out (charge per line of stock). Minimum EUR 40.00. There is no charge for transferring stocks in.

[FONT=&quot]Other third party charges may apply.[/FONT]

ranger4

hblock21 wrote: »

AIB have launched a new service on their internet banking. You can now buy and sell shares on-line. It looks interesting but I want peoples opinions, below are their pricing...how does it compare to share watch and others etc??

Commission Rates

• Trades up to EUR 25,000 charged at 1.25%
• Balance exceeding EUR 25,000 charged at 0.50%
• Minimum Commission Per Trade Cost EUR 32.00

Standard Additional Charges

Stamp duty is chargeable on the purchase of Irish and UK shares.
The rates are:

• Irish Shares : 1.0%
• UK Shares : 0.5%

There is no stamp duty payable on the purchase of shares from most other countries. The sale of shares does not incur stamp duty.

Any currency exchange deals that we conduct on behalf of our clients may include a spread to cover the risk for Goodbody Stockbrokers.

PTM Levy

Transactions in securities of companies incorporated in the United Kingdom, the Channel Islands or the Isle of Man, which exceed £10,000stg or equivalent in any other currency, attract a levy of £1.00(stg) payable to the UK Panel on Takeovers and Mergers.

ITP Levy

A flat-rate levy of EUR 1.25 is in respect of dealings in quoted securities of relevant companies is payable to the Irish Takeover Panel where the transaction consideration exceeds EUR 12,500.00.

US Charges

A charge of EUR19.05 is included on all US purchases and sales. This charge is to cover the cost of holding and transaction fees passed onto Goodbody Stockbrokers by our Custodian Agents in the US.

US transactions may also attract other minimal US Stock Exchange and Broker charges which are included in the price.

European Charges

A charge of EUR 35.00 is included on all European purchases and sales. This charge is to cover the cost of holding and transaction fees passed onto Goodbody Stockbrokers by our Custodian Agents.

Ancillary Charges

• EUR 26.00 annual account maintenance charge.
• EUR 13.00 fee to transfer shares out (charge per line of stock). Minimum EUR 40.00. There is no charge for transferring stocks in.

[FONT=&quot]Other third party charges may apply.[/FONT]

can you also phone and trade with actual Live market price not delayed price?

Mort5000

hblock21 wrote: »

AIB have launched a new service on their internet banking...

This has been around for a while, at least 5 years.
They're expensive compared with other companies.
And the basic service is "Execution Only, therefore cannot give you any advice"

HTH.

dotsman

Mort5000 wrote: »

This has been around for a while, at least 5 years.
They're expensive compared with other companies.[/SIZE]

Yup, that's been part of their online banking for as long as I can remember.

But I actually don't think they're that expensive. I only recently signed up as I wanted to move away from Internaxx (who I thought were supposed to be cheaper/better). Ultimately, I have to say I love having my share dealing on the same website as most my other finances (current accounts/credit card/saving/deposit/mortgage*). And it's worked out pretty cheap for me.


* I have other accounts with other banks, but these are my main ones

marathonic

I trade mostly US shares with Interactive Brokers.

According to the charges above, my cost per transaction with AIB would be a minimum of 51.05 euro per transaction - more if I'm buying or selling more than 2,560 euro worth of stock.

With Interactive Brokers, I'm charged 0.5 US cents per share with a minimum charge of $1. That means I can purchase/sell up to 200 US shares for $1 (less than 75 cents).


According to the charges above, my cost per transaction for European shares with AIB would be a minimum of 67 euro per transaction - more if I'm buying or selling more than 2,560 euro worth of stock.

With Interactive Brokers, I'm charged 0.1% of the trade value with a minimum charge of 4 euro. That means I can purchase/sell up to 4000 euros worth of European shares for 4 euro.


According to the charges above, my cost per transaction for UK shares with AIB would be a minimum of 32 euro per transaction - more if I'm buying or selling more than 2,560 euro worth of stock.

With Interactive Brokers, I'm charged 6 pounds (about 6.70 euro) for a trade of up to 50,000 pounds value


I cannot trade Irish shares with Interactive Brokers but can (extremely cheaply) transfer money from one currency to another - the account has balances in each currency. I can also buy and sell options which I do quite frequently. You can also trade futures, bonds and CFDs - which I haven't been involved with yet.

AIB charge an annual transaction fee of 26 euros whilst Interactive Brokers have a minimum monthly commission of $10 (if you don't use the $10, they charge you the difference at the end of the month).


The annual minimum commision with Interactive Brokers works out at 73.75 euro. Without any additional costs, you can trade:

• 10 US Shares per month; or
• 2 European Shares per month; or
• 1 UK Shares per month; or
• 2 Australian Shares per month; or
• 2 Japanese Shares per month; or
• 4 Hong Kong Shares per month; or
• need I continue :-)

When I first lodged money to the account (there's a $10,000 minimum initial lodgement), I purchased equal amounts of 15 different shares at a commission of around 11 euros. As these were US shares, my commission with AIB would have been about 765 euro. Therefore, the savings in commissions from my initial purchase will enable me to make any of the above trades every month for the next 10 years.

Option trades cost 0.70 cent per contract with a minimum charge of $1 plus exchange fees (usually $0.36). I usually sell options as opposed to buying them. An example of a trade I made yesterday is Allstate options for June expiry.

Basically, Allstate is now trading at $24.23. I could buy 200 shares of Allstate now for $4,846 or I could (as I done) sell 2 Put Options with a $22 strike and a June expiry. These were selling at $1.10 each and, as each option represents 100 shares, I received $220 commissions in my account. If Allstate are above $22 at expiry (next month), I get to keep the $220. If they are below $22, I have to buy them at $22 (even if they drop to $20 by then, I still pay the $22). However, as I've already received $1.10 per share commission, the cost to me is only $22 - $1.10 = $20.90. This means that the shares can drop almost 14% from today and I'd still be in profit. I want to buy the shares anyway but, using options, I'm going to either get the shares 14% cheaper than todays price or else get $220 'free money'.

rugbyman

Hello marathonic,
your posts are informative and carefully written and easily read.

re your put options in allstate, from whom did the 220 $ arrive/

I understand you entered into a deal to buy 200 shares in June at 22 $., knowing that the value that day was 24.23$.
If they fall below 22 you must buy at 22

If they are 23$ or 25 $ , presumably they are not for sale at 22, the owner retains ownership, having given you 220 $ for the security of knowing they were always saleable at 22$ even if they fell to 20$

I assume(dangerous thing to do) you had to leave that amount(4846) available in your account in case the shares fell.


Another question is "how safe is your 10,000 initial deposit and your share certs"
regards Rugbyman

PDelux

With interactive brokers you can't see what price you are buying and selling at unless you get a data feed which is another monthly fee, btw. Still prefer it to any of the Irish brokers though!