Is it a good Idea to sell off all my shares in my current securities account and repurchase them in my new securities account, to lower the fees? - Seedly
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Asked on 23 Aug 2019

Is it a good Idea to sell off all my shares in my current securities account and repurchase them in my new securities account, to lower the fees?

This might sound like a big "NO" due to the fees for buying & selling. I now have 10 overseas shares with Phillips Securities and the fees are $240 pa (about 0.5% of what I paid for all the shares). I intend to keep long term. Hence I'm considering selling off my shares in phillips ($25/trade) and re-buying them in SCB ($10/trade) which has 0 custody fees. Transfer is $53.50 per share. Any advice / opinion?

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Sounds like a good plan if transferring costs more.

I don't see any other alternative here. If you intend to hold long term, then a one-time fee to move the shares to a cheaper custodian is definitely a wise choice.

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Charlot Ng
Charlot Ng

27 Aug 2019

Wouldn't selling and re-buying put you at a new entry price?
Gabriel Tham
Gabriel Tham

26 Aug 2019

Well, on paper it will be a new entry price. But in reality, it is the same. You bought A at $1. Now its $1.50. Paper gains $0.5. Now lets say you want to shift it, sell and buy back. You sell at $1.50, buy back at $1.50. Net net you just lost the transaction commissions.
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