Water

Savings through H2OX

18 October 2019

H2OX now charges a flat fee of $2.20 per ML to trade allocation. This fee is charged to both the seller and the purchaser of the allocation.

We previously published an article comparing our new exchange fee against the commissions charged by other brokers. The charts show what commission was paid to a broker as a buyer or a seller.

Its interesting to look at what impact the commissions have to both buyer and seller for an individual trade.

The chart below shows the effective price paid by the buyer (top point on the line) and the amount received by the seller (bottom of the line) at a water price of $800 per ML.

H2OX is an exchange and charge a flat $2.20 per ML (inc GST) to both the buyer and seller. Broker A, B & F are actual figures quoted on the web site of the relevant brokers. The 1, 2 & 3% brokers show the spread across most other broker in the market.

Lets say you’re dealing with Broker A in the above example. Both the Seller and Buyer would benefit by selling their water through H2OX. In fact, the Seller would have made more money by listing their water for sale $781!

The question to ask your broker or exchange is not “What can you sell/buy my water for?” but rather “How much will I receive/pay for that parcel of water after all fees and charges?”.

In the end, the price of the water documented on the water authority form isn’t as important as the money the seller receives and the effective price paid by the buyer.

With the water prices so high at present, taking 5 minutes to make another phone call could result in a significant difference.

Take the time to ask the question!