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TD Waterhouse To Shake-Up Irish Broker Market With The Launch Of A New Online Share Trading Service
10/Sep/2009 12:27
Dublin, 12th September 2009 - TD Waterhouse, one of the UK's leading execution-only brokersa, today announces the launch of its new online equity trading service in Ireland - tdwaterhouse.ie - which will provide Irish investors with the broadest range of online trading services on local and international equity markets at the most competitive prices.
The new service follows the successful launch of TD Waterhouse's derivative trading services, 'Contracts for Difference' (CFD) and 'Financial Spread Betting' (FSB) in November 2008. Now, for the first time, Irish investors looking to take advantage of global markets will be able to execute their trades through a leading global online stockbroker with an established infrastructure and reputation for high quality service.
Angus Rigby, Chief Executive Officer, TD Waterhouse said: "We are delighted to be expanding our services to Ireland and I am confident that TD Waterhouse will quickly become the first choice for discerning retail investors wanting to trade online. Our research has shown us that the Irish market is currently dominated by a small number of online brokers with limited equity trading services at premium prices. We believe Irish retail investors would appreciate a great service at a great price. Thanks to our new trading platform - tdwaterhouse.ie - they will now enjoy both from TD Waterhouse."
In addition to providing online equity access directly to the Irish market, the TD Waterhouse service will also provide Irish investors with direct online access to a broad range of international trading exchanges. In total, customers will be able to trade on 18 local and international exchanges from 13 countries across Europe, North America and Asia Pacific1. Customers will also benefit from real time FX transactions and reduce the need for costly foreign exchange charges thanks to TD Waterhouse's multi-currency accounts, which can hold six major currencies including Sterling, Canadian dollars, US dollars, Hong Kong dollars, Singapore dollars and Australian dollars, in addition to Euros.
The cost to trade will include a frequent trader rate of only €15, and a standard trading rate of only €20 per trade; both rates apply on any trade up to a value of €100,000 regardless of international market2. With only 10 or more trades required per quarter to benefit from the discounted frequent trader rate, TD Waterhouse is confident that its new service will prove to be more competitive than existing online trading services currently operating in Ireland3.
In addition, as an execution-only broker, TD Waterhouse will offer a range of tools and research facilities to help Irish investors, regardless of their level of knowledge or experience. Novice traders can learn about the potential risks and rewards of stock market investment before they begin to trade, while all customers will benefit from the company and markets research data. This is provided in partnership with some of the leading suppliers of high quality data, such as MorningstarTM and Dow Jones.
Angus Rigby continues: "With the arrival of TD Waterhouse, Irish retail investors will benefit from a service that offers direct access to international markets and research at significantly lower costs. In the current economic climate, the scope to take advantage of markets outside of Ireland opens up a vast new range of investment opportunities. Our UK customers have already fully embraced the international markets and use our wide ranging access to their advantage. In fact, approx 12% of our trades by UK customers are in international stocks, and we fully expect our Irish customers to respond with the same enthusiasm.
"Our timing is also opportune given the decline of the property market and the weakness of traditional investment products, pushing investors to adopt alternative investment strategies. There has also been an increased trend of investors returning to equity markets to benefit from volatile trading conditions. Finally, the move into Ireland is also an important step as we look to launch our online equity trading service in other European countries in the future."
a TD Waterhouse is the UK's 2nd largest execution-only broker and a subsidiary in the TD Bank Financial Group (TDBFG), the 6th largest bank in North America by branches. It ranks among the world's leading online financial services firms, with more than 5.5 million online customers. TDBFG is one of only three NYSE-listed banks to maintain its 'Aaa' rating from Moody's.
Footnotes:
1: TD Waterhouse provides access to the following markets. The same trading rates apply on all of the markets listed below - there is no mark-up for international trades.
| Country | Exchange | Country | Exchange |
|---|---|---|---|
| Ireland | Irish Stock Exchange | France | Paris Euronext |
| UK | London Stock Exchange (LSE) Alternative Investment Market (AIM) the PLUS Market |
Belgium | Brussels Euronext |
| Germany | Frankfurt Xetra | Italy | Milan Stock Exchange |
| US | New York Stock Exchange (NYSE) NASDAQ American Stock Exchange (AMEX) |
Netherlands | Amsterdam Euronext |
| Spain | Madrid | Australia | Australia Stock Exchange |
| Canada | Toronto Stock Exchange Canadian Venture Exchange |
Hong Kong | Hong Kong Stock Exchange |
| Singapore | Singapore Stock Exchange |
2: TD Waterhouse online rates on trades up to €100,000 are as follows:
| Frequent trade rate (applicable on 10 plus trades per quarter) | €15 - flat rate |
| Standard trading rate | €20 - flat rate |
Special rates apply on trades in excess of €100,000 as follows:
| Trades between €100,000 to €499,999 | €32 - flat rate |
| Trades between €500,000 to €999,999 | €60 - flat rate |
| Trades above €1 million | Subject to negotiation. |
Frequent Trader Commission Rates
Frequent Trader Commission Rates work on a rolling monthly cycle, based on the number of trades executed in the preceding three calendar months. If customers complete 10 or more eligible trades in the preceding qualifying three month period they will qualify for TD Waterhouse's Frequent Trader Commission Rates, from the start of the next month.
Frequent Trader Commission Rates apply to each individual account separately. Trades cannot be aggregated across accounts. Trades that are not eligible include - Certificated, OEICs, New Issue, cancelled or deleted trades, zero commission and promotional discounted rate trades. CFD & Financial Spread Betting accounts do not qualify for the Frequent Trader Commission rates.
3: Online trading rates comparison at a glance - rates correct as at 2nd September 2009
| TD WATERHOUSE IRELAND | SHAREWATCH | DAVY | GOODBODY | |
|---|---|---|---|---|
| Web frequent trader | €15 flat fee on trades up to €100,000 | n/a | Min. €15 Otherwise 0.5% on first €25k, 0.25% on balance | n/a |
| Web standard | €20 flat fee on trades up to €100,000 | Irish trades Min. €19.95 UK trades Min. £14.95 Both - Otherwise 0.3% See additional notes below (1) | Min. €25 Otherwise, 0.75% on first €25k, 0.5% on balance | Min. €32 Otherwise 1.25% on first €25k, 0.5% on balance |
| International premium | No premium levied on international trades | n/a | See additional notes below (2) | €19.05 included on all US trades + 0.20% overseas broker fee. |
| Frequent criteria | 10+ trades per quarter (rolling) | n/a | 20+ trades per calendar year | n/a |
| Account management fee | €15+ vat - (quarterly - can be waived - see additional notes below (3)) | €60 (annual - not waived) | €40 + vat (charged twice yearly - not waived) | €26 (annual - not waived) |
| Transfer in stock | FREE | FREE | FREE | FREE |
| Transfer out stock | €25 per holding | €30/£20 per holding | €30 + vat per holding | €13 minimum per holding |
| FX | +/- 1.75% | Spot market rates - no extra charges | n/a | Not specified but 'may include spread' |
| Cash interest rates | 0% | None stated | ECB deposit rate | No interest |
| Savings rate | ECB - 0.75%, collared at 0.5% | n/a | n/a | n/a |
Additional notes:
1: Sharewatch - Small Trade Service
Buy or sell UK & Irish shares up to a maximum value of €15,000 for a fee of €50 or £35 approx per trade without the need to open an account or register. Registration will be required when the combined transactions reach a value of €15,000 or higher.
2: Davy - International premium (third party charges):
Foreign transaction custody charge (for each trade outside of Ireland & UK) = €25
Overseas broker fees (vary depending on overseas market dealt and broker used), typical fee = 0.15%
3: TD Waterhouse - Account Management Fee:
This fee is calculated on inactive Trading Accounts on a quarterly basis. An inactive TD Waterhouse Trading Account is defined as an account that, at the close of business on the relevant Quarter Date, has had no trades executed on it since the previous Quarter Date, or has a cash and / or Portfolio balance of €5,000 or less. Portfolio valuation will be based on the closing mid price on the Quarter Date.
PLEASE NOTE: The TD Waterhouse Account Management fee will be waived until March 2010.
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