How to get out of Davy Stockbrokers?

pmk19

I purchases some shares a few months ago in a few different companies. I should have done more research about which brokers to go for but anyway i want to get out of davy so i wont have to pay the ridiculous maintainence fees.

I have a nominee account but i was wondering how own my shares in my own name and not be connected to davy or any other broker for that matter. How do i go about doing this? How much cost is likely to be and is it worth it or should i just stick with them?

Any advice would be appreciated. thanks

waldo

"In the stock market, the most common use of nominee accounts is where execution-only brokers act as nominees for their clients. The shares are registered in the name of the broker, but the client has beneficial ownership of them. The advantage of nominee accounts is that they make settlement quicker and more streamlined. In theory, dealing costs should be lower."

Are your shares registered through Crest? I use AIB online share dealing, and find them pretty good (32 euros per trade). Works through my current account, which is convenient. Shares with online accounts are registered with crest, who hold the shares for you, but they are in your name (as in you still get all the brochures and divisend payments).

pmk19

waldo wrote:

Are your shares registered through Crest?

I think so. Its an online account if that answers your question. So since i own them but they're under davy's name how do i hold onto to the shares and just go to a different stock broker to sell them.

Do you have to pay maintainence fees with that AIB trading. That sounds really good. Do you know if bank of ireland offer a similar service. Thanks

waldo

I'd get onto AIB (or Goodbody online), and they will tell you how you can move your account. Yes I have to pay maintenance fees. It's about 24 euros per year, in two installments. It should be just a matter of transferring your crest account to AIB.

By the way, Davy is the stockbroking arm of Bank of Ireland, in the same way Goodbodys is owned by AIB (I think).

nesf

Yes, Goodbody is the AIB stockbroking branch. They seem reasonable in their fees although the question I must ask is, are you going for long or short term trading?

This FAQ from one of the stickies above may interest you.

If you plan on holding a position for a substansial lenght of time then you should look at "traditional" stock brokers. I use Goodbody, mostly out of convenience. I already bank with AIB and it's easier and faster to transfer money about the place when you only are dealing with accounts within a bank. They are not necessarily the cheapest, but they are reasonable with their commissions and I rate convenience as being a large factor for me.

However, I'm playing with relatively small sums here (<5K) so for larger sums, it might be better to take a look around.

If you hold positions for 10 weeks or less then take a look at CFD's (contracts for difference). The company that's been recommended to me by professionals in the markets is GNI. Their website is here. I haven't used them myself, but If I was to go into CFDs I'd probably take a look at them first.

If you are looking at very short term. ie holding a position for a maximum of a few days, then look at financial spread betting. www.igindex.co.uk is who I use.

Hope the above helps.

pmk19

thanks for the info. nesf. Well originally i intended on trying to buy and sell on a short term basis but with the amount ive have invested its not really worth it becuase i wouldnt be making that much. So like you said the traditional stock brokers are probably best suited for me since my investments are turning out to be long term ones.

Say for instant I change stockbrokers. How do transfer my shares from davy to that stockbroker so that I wouldnt have to pay the maintanence fees of davys.

nesf

If you switch stockbrokers, when you go talk to potential new ones you should mention that you wish to switch shares from Davy. They will, since they want you business, make this as easy as possible for you and should be able to explain everything that is involved.

You really need to go in and talk to someone at whatever stockbrokers you are thinking of using. See if the staff you'll have to deal with are nice. I know, that most of this stuff can be handled online these days, but it doesn't hurt to meet people in person and see what they are like.

Occasionally you might need stuff sorted out offline so it's worth meeting them face to face at some point imho.

Blackjack

Only UK and Irish shares in Electronic Form are held in CREST. CREST is the clearing system by which shares are transferred Electronically in the UK and Ireland. Shares listed in other countries will be cleared via other clearing systems (DTC in the US, NECIGEF in the Netherlands, Clearstream in Germany and Euroclear in France etc etc).
You may have to pay fees to Davy's to transfer the shares, however if you have enough to transfer Goodbody's may ease some of this pain for you. I don't know for sure on this as I have had no dealings of this nature with either.

nesf

AIB have an ok outline of online share dealing including some info on transferring shares etc.

http://www.aib.ie/sharedealing/indexnetscape.html

Worth having a look at if you want to go the online sharebroker route.