One of the brokers that is being talked about the most in investor forums is Self Bank's online broker. In this article we will thoroughly analyze the fees and commissions of this broker for investment in the stock market, which you can find in the
Self Bank purchase and sale commissions in the Spanish Continuous Market
Self Bank sales commissions on the Spanish MAB
Self Bank purchase and sale commissions on the Spanish MAB
I do not understand why it makes this difference with the operations on the MAB that other brokers, such as ING's Orange Broker do not. In addition, to operate on the MAB, there is the problem that Self Bank does not allow to operate over the internet, only by telephone, which is an added inconvenience for investors in this market.
Self Bank sales commissions in the European market *
Self Bank purchase and sale commissions in the European market
* The purchase of securities in the United Kingdom is associated with the Stamp Duty and 0,50% will be charged on the gross amount of the operation and for Irish securities 1%. Minimum commission of € 28,95 in Belgium and Portugal.
I was also quite surprised by this clarification in the rates:
“In operations in France, the TTF“ Taxe sur les Transactions Financières ”, a tax on financial transactions, will be applied. The aforementioned tax will only be applied to securities with a market capitalization of more than 1 billion euros. The TTF will amount to 0,20% of the gross amount of the operation. "
One trillion euros? There is no company in the world with a capitalization of more than one trillion euros. The largest companies in the world are Apple and Exxon Mobil, and their capitalization does not reach half a billion euros. I imagine they are referring to the American trillion, which is 1.000 million, not the European trillion, which is 1.000.000 million. If so, such a mistake in a bank says very little in favor of its professionalism.
Buying and selling commissions in the American market
Purchase and sale commissions on the Nasdaq **
Self Bank purchase and sale commissions on the Nasdaq
Buying and selling commissions on the NYSE and AMEX **
Self Bank buying and selling commissions on the Amex and NYSE
** Calculations using an exchange rate of 1,30 euros / dollar
Self Bank Trading Commission Chart
Chart with all Self Bank buying and selling commissions
Self Bank Custody Commission
First, Self Bank separates the custody fees between national markets and international markets. These commissions will be free if at least three operations per month are carried out in the same market and account. In other words, in order not to pay the custody commission, it is necessary to carry out at least 6 operations per month, 3 in the Spanish market and 3 in international markets. In the Spanish market, the payment of this cost is also exempted by the fact of offering your shares in Aquila values for an amount greater than € 5.000, a service that I may analyze in the future in this blog.
This condition seems totally excessive to me for a service that no longer requires physical custody of the shares, but is carried out electronically. For example, ING only requires to carry out one operation every 6 months in any market to avoid having to pay the custody commission. In other words, Self Bank's requirement to avoid paying the custody commission is 36 times more burdensome for the investor than that of the orange broker ING Direct.
The minimum amount if these conditions are not met is € 4,95 + VAT per month, market and account. In other words, an account that operates in the Spanish and international markets must pay a custody fee of € 143,75 each year (€ 4,95 + VAT x 2 x 12). This figure seems disproportionate to me for a service that, as I have already mentioned, does not require physical custody of the shares, but is carried out electronically.
Other Self Bank commissions to pay
- Commission for ordinary sending of statements: Postage costs
- Commission for photocopy: € 0,5 per sheet + VAT
A commission of € 0,5 per photocopied sheet? Are you kidding? If they exist companies in Madrid that make color photocopies for € 0,1, I do not understand why Self Bank charges 500% of this price to its customers. For that price, they didn't even have a scribe to make the copies by hand ...
Conclusion on Self Bank fees and commissions
After analyzing their rates, commissions and conditions, I did not find the Self Bank offer interesting. For starters, their fees for trading on the stock market are very cumbersome, varying greatly from one market to another. Their prices are not particularly competitive either and in the conditions for the suppression of the custody commission they seem excessive to me.
In addition, there are other small details that I have been commenting on throughout the analysis, such as the price of photocopies or the fact of not being able to operate online in the MAB, in addition to doing so at a higher price, which contribute to Self Bank not an option for me, so at the moment, I continue to choose ING Direct's Orange Broker as the best option for long-term investors.