Halifax Share dealing

19
Found 10th AprEdited by:"KB90"
I got account with "Halifax" Share dealing.

Whenever I buy the shares, I always ends up paying more money for each share as compared to the current share price (It doesn't matter if the Share price is going up or down).

Halfax takes their commission (about £12) out when buying or selling share. But still ending up pay higher price to buy the shares?
Community Updates
Ask
19 Comments
Is the following is true or untrue

> You logon to the Halifax dealing service
> You ask for a price for a number of shares
> Halifax offer you the deal (including number of shares, price and commission info on the screen)
> You accept or reject the deal

If true; Why did you buy?

Where are you seeing this mythical real share price?

Small investors don't buy big blocks of shares so Market Makers have to buy larger blocks and then split them up thus incurring overhead costs. Yes, they have do have very real costs in repackaging share allocations.
Are you absolutely sure Halifax take the commission out of the share price? I would have thought they would charge their commissionon top of the share price each time a trade is made?
You will pay a flat rate commission (about £12 ) on each "trade " whether its buy or sell or 1 share or 1000 . In addition to this you pay "stamp duty" on each buy (0.5%) . There is also a bid/offer spread on shares which is wider on shares with low liquidity (AIM listed shares for instance ) but very small on high liquidity shares (such as BP , Lloyds for instance ) .

You should get a "live price" when buying or selling which lasts for about 10 secs , you click to accept or let it expire after 10 secs if you don't like the price . If you accept this is the price you pay per share + commission +stamp duty .
Edited by: "rogparki" 10th Apr
my husband had a tracker fund with halifax share dealing and the charge was high and it was difficult to sell the fund quickly. very mickey mouse site. we now use hargreaves lansdowne, which is much better.

share price changes by the second so you can never see the exact price at that particular second of purchase. the share price you see tend to be delayed by a minute even if they claim it is live, and can be delayed up to 15 minutes if you don't set live price setting or don't have the facility to set this.

halifax share dealing may also not buy the share at the time of the order, i don't have experience of buying individual shares with them, only funds. also single shares attract stamp duty on purchase of 0.5%. i prefer to buy funds as there is no stamp duty to pay.
May be I am wrong, what I did understand is that "Halifax calculate Stamp Duty and add up to the current share price which makes the Share price higher.

By the way, I as explained before, it doesn't matter Share price is going up or down, it's always ends up buying with higher Share price.
KB9046 m ago

May be I am wrong, what I did understand is that "Halifax calculate Stamp …May be I am wrong, what I did understand is that "Halifax calculate Stamp Duty and add up to the current share price which makes the Share price higher. By the way, I as explained before, it doesn't matter Share price is going up or down, it's always ends up buying with higher Share price.


Unless you are paying for a live stream, the price you see will be 20 mins delayed anyway. The only time you will see a live price is when you ask for a trade.

This is deeply worrying. You clearly do not understand the very basics of what you are engaging in and that puts Halifax on dodgy ground accepting your business. Its not investing. Its gambling.
Edited by: "ccnp" 10th Apr
Where are you getting the share price information from?? The chances are it will be the mid-price, so if you're buying the price will be higher and if you're selling the price will be lower than this.
KB9040 m ago

May be I am wrong, what I did understand is that "Halifax calculate Stamp …May be I am wrong, what I did understand is that "Halifax calculate Stamp Duty and add up to the current share price which makes the Share price higher. By the way, I as explained before, it doesn't matter Share price is going up or down, it's always ends up buying with higher Share price.



The only time you get a "live " share price is on the Order Page for the 10 secs before you execute (the offer), if indeed you decide to execute . Any other share prices you see (before and after) will be 15 minutes delayed .
Edited by: "rogparki" 10th Apr
Hallsie28 m ago

Where are you getting the share price information from?? The chances are …Where are you getting the share price information from?? The chances are it will be the mid-price, so if you're buying the price will be higher and if you're selling the price will be lower than this.


The price, I am getting is from "Halifax and search engines together" also price is going down but buying shares always higher.
Firstly, if you are paying £12 per trade, I would suggest you consider moving to IWeb - they are now owned by Halifax (HSDL) but only charge £5 per trade.
As rogparki says when you issue a trade request HSDL will go to the market and get the 'best' sell or buy price available which will not be the mid price you see on the FTSE tickers. The difference between the sell / buy price depends largely on how active the market is for those shares. The commission is always taken from or added to the final price and potentially Stamp Duty Reserve Tax ( SDRT ). A typical purchase may look like

BT A Shares
Qty 500
Unit price 200p
Consideration £1000
Commission £12
SDRT £5

Total £1017

Due to the commission, SDRT, and sell / buy split you will always appear to 'lose' money immediately after buying. It's the nature of share dealing - hopefully in six - 12 months you will be in profit.
KB9035 m ago

The price, I am getting is from "Halifax and search engines together" also …The price, I am getting is from "Halifax and search engines together" also price is going down but buying shares always higher.


i have several pages open when i am dealing and flick between them constantly to see the price from various sources and you can not get the exact price from the other sources to that being offered on the deal action, which is promised for a short period before they close the window.

sometimes it is higher and sometimes it is lower. how many deals have you done as you may not have done enough deals to come across ones where the deal window price is lower than that from the live price sources.

the stamp duty is not added to the share price as far as i am aware, but quoted separately (or added separately). i have not bought individual shares so i can not be certain on this.

because they promise to sell to you at a certain price for a limited window, it would not surprise me if they err on the side of caution and add on a margin of risk to this promise. it also depends on what other people are selling or buying for. my husband sold shares recently and was offered a price but when he clicked sell, it states there are too many shares being sold and no one wants it at that price even though that is the live price. the price may be live but it also depends on if there are people wanting to buy it at that price.
i used this bank for my shares for the last 4 years
when you do a trade, it will tell you the price per share and the amount to pay THEN a £12 on top admin fee

depends if you are doing a set amount of shares, say 1000 or a price of £2000 as they will round up as close as they can to the £2000 with the £12 included
I buy using Halifax share builder at £2 a deal... Normally just buy every 4 months rather than setting up a regular plan.. Just one off purchase and i build up a nice holding in just a few shares.
Edited by: "wayners" 10th Apr
Execute price 401.30p
Avg Cost Per Share 403.8074p

Not sure if they added the charges into Share price.

I bought the share about 401 but Share price cost is showing at about 403 as you can see calculation below:

Price:
4.012960 GBP
Consideration: 9936.09 GBP
Brokerage Charges

Commission: 12.50 GBP
Other Charges:


Stamp Duty: 49.68 GBP

Total Charges: 62.18 GBP
Net Total Due: 9,998.27 GBP
KB9012 m ago

Execute price 401.30pAvg Cost Per Share 403.8074pNot sure if they added …Execute price 401.30pAvg Cost Per Share 403.8074pNot sure if they added the charges into Share price.I bought the share about 401 but Share price cost is showing at about 403 as you can see calculation below:Price: 4.012960 GBPConsideration: 9936.09 GBPBrokerage ChargesCommission: 12.50 GBPOther Charges:Stamp Duty: 49.68 GBPTotal Charges: 62.18 GBPNet Total Due: 9,998.27 GBP


so how many shares have you got from this particular purchase?
mutley11 h, 5 m ago

so how many shares have you got from this particular purchase?



2476
KB9015 m ago

2476


so the explanation is this

cost of purchase before fees and stamp duty = £9,936.09
dealing fee (commission) = £12.50
stamp duty = £49.68

total cost of purchase including fees and stamp duty = £9,936.09 + £12.50 + £49.68 = £9,998.27

number of shares purchased = 2,476

average cost per share (including fee and stamp duty) = £9,998.27 / 2476 = £4.038074 or 403.8074p

that is why it is higher than the share price as the average cost per share of 403.8074 includes the fee and stamp duty.
mutley123 m ago

so the explanation is thiscost of purchase before fees and stamp duty = …so the explanation is thiscost of purchase before fees and stamp duty = £9,936.09dealing fee (commission) = £12.50stamp duty = £49.68total cost of purchase including fees and stamp duty = £9,936.09 + £12.50 + £49.68 = £9,998.27number of shares purchased = 2,476average cost per share (including fee and stamp duty) = £9,998.27 / 2476 = £4.038074 or 403.8074pthat is why it is higher than the share price as the average cost per share of 403.8074 includes the fee and stamp duty.



So Halifax added the commission and stamp duty to the actual share price.

Thank you for taking time for all of these calculation and explanation.
KB9010th Apr

So Halifax added the commission and stamp duty to the actual share …So Halifax added the commission and stamp duty to the actual share price.Thank you for taking time for all of these calculation and explanation.


it would appear so. they spread the fixed cost of the deal across the number of shares that you have bought and they also add on the stamp duty of 0.5% to each share. that is the true cost of each share purchased as you have had to pay these fees on top.

on hargreaves they do the same for the fund units that i buy where they spread the fixed fee cost across the number of units purchased.
Post a comment
Avatar
@
    Text

    Top Discussions

    Top Merchants