How much can I save?
2 July 2019
With the announcement of our new exchange fee, it is interesting to compare the potential savings when trading through other brokers.
H2OX now charges a flat $2.00 per ML for allocation trades with a minimum of $75 for a transaction (ex GST).
Nearly all other brokers charge commissions on a percentage basis. As the water price goes up, so do their commissions. On top of that, some brokers charge additional administration and even additional per ML fees!
The following charts show the standard commissions paid through a variety of brokers based on $600 per ML water. Simply hover over the chart to see the comparison between commissions. (It should be noted that not all brokers publish their commissions on their web site – not sure what they have to hide.)
If you were selling 100ML of allocation at $600 per ML, you would pay an H2OX an exchange fee of $220 inc GST. Compare that to a broker or exchange charging 1.5% and you’re making a saving of nearly $700. If you’re dealing with a broker who charges 3% you’d save close to $1,600. That’s more money in your pocket!
A lot of brokers charge different commissions to buyers and sellers. The chart above shows the commissions paid by a buyer. Once again, if you were buying 100ML of allocation at $600 per ML, you would pay an H2OX an exchange fee of $220 inc GST.
The following chart shows the total commission earned by brokers for each trade, based on their standard published rates. It is very difficult to find out whether any brokers have a minimum fee let alone whether thy charge additional conveyancing or per ML charges so the grey lines in the following chart represent the absolute minimum amount brokers would earn on a trade.
Our new fixed exchange fee for both sides of an allocation transaction is an innovation in the water market. This saves you money and ensures better market outcomes for all participants.
And don’t think that you receive any less service from H2OX! We are happy to point you in the right direction to find out information about the market, we are continually publishing articles about whats going on in the market and how changes may affect the market.
All buyer funds are held in an escrow account until the trade is approved by the relevant authorities at which time the funds are settled to the seller. Depending on your bank you may even see the funds on the day the trade is approved. That’s more money in your account quicker.
For further information give us a call on 1800 988 118 or simply click the button below to fill out our online registration form, or download and print out the form below and email it back to us. There’s no cost to register and no obligation to trade through H2OX.