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4 ways  Save on securities trading fees

When we talk about investing in the stock market, we are talking about returns and risk and sometimes we forget to take into account a certain expense that hurts the viability of our portfolio. We mean bank commissions, and in particular commissions related to securities activity. Do not think that this is small money, for example according to the financial statements of Bank Hapoalim, in the third quarter of 2017, the bank's income from securities commissions reached NIS 189 million.
The commissions that the banks charge you are gnawing at the profits of investing in the stock market, but we tend to treat the commissions as a divine decree and are not even aware of the level of commissions.  If you trade on Wall Street through an Israeli bank  You will most likely play your bag with commissions. Portfolio management fee  Foreign securities in the bank - annual management fees that range around 0.6% -0.3% per year from the value of the portfolio per year. This means that for a portfolio of NIS 500,000 you will pay a commission of NIS 1,500-3,000 per year.  Especially in an age of zero interest rates against deposits. The current situation significantly reduces the chance for investors to profit this year if at all.​ In the following article we have examined for you how these savings can be saved.

Are there ways to save on commissions? Definitely yes !

Bargaining - First of all there are differences in commissions between the various banks with a tendency for higher commissions the larger the bank. You can negotiate with the banks and receive various offers. Do not be ashamed to go back to the bank and present to them the offers you received from other banks, it will help you. Even if you choose to bargain with the banks and even get discounted prices, remember that these discounts are almost always temporary and expire usually after a year, do not forget to record a reminder in the diary and ask for the discount again!
2. Perform more actions online - Did you know that an amendment to the law passed in March 2017 states that  Every action that a customer performs  Without the help of a bank clerk it will be cheaper.  Performing an operation by direct means will save you money, and is also much faster and more convenient, so there is no reason to go to the branch and get help from the clerk.
3.  ETFs or mutual funds? -  If you have decided to manage your investment portfolio using investment instruments such as ETFs and mutual funds, it is important to be familiar with the features of the instruments and the management fees embodied in them. Total ETFs,  Each of these devices has advantages as well as disadvantages,  So what is worth? Well, ETFs are tracking instruments (index, sector, etc.) whose purpose is to mimic the same asset and bring about a similar result in yield. Mutual funds, on the other hand, are instruments  In them, active management of investment managers is carried out. However, mutual funds have significantly higher management fees in relation to ETFs. Hence, if we choose to invest through mutual funds, we will want to choose a fund that has shown an excess return on the benchmark index (the benchmark) in order to justify the high management fees, which are known to erode our portfolio return. Like ETFs  Succeeding in attracting more and more investors in recent years and for that you can read more in the article, 6 reasons to invest through ETFs.  
4. Managing the portfolio through foreign brokers -  it's important to remember
That you are not restricted to trading through the banks,
You can also manage your investment portfolio with private brokers.
Who are actually those brokers?
These are the same members of the stock exchange (mostly American entities),
Through which your bank actually clears its transactions.
An example of one of these is "Interactive Brokers".
Which is considered one of the largest trading bodies,
And even trades itself on the NASDAQ (IBKR) ,
Worth about $ 20 billion. Through the same foreign broker
You can open an independent trading account in your name,
Which will be supervised by the US authorities
And usually has insurance on the funds.  Anyway,
If you have decided to take action in your portfolio
Outside the bank, it is important that you check the terms carefully,
And that it is a recognized and well-known financial entity.
השוואת עמלות קנייה מכירה בניירות ערך
Bank fees can reach up to 300 times the fees at foreign brokers, and yet the public avoids brokers, although these are usually much larger entities than local banks in Israel. The trading systems, the variety of financial instruments and the currency conversion costs usually do not fall from the banks.  Besides, from a recent article in Globes which found that the securities commissions of Bank Hapoalim (and probably of most banks in Israel) are in constant erosion (see table). The conclusion is that Bank Hapoalim has been hurt by competition with private brokers, and therefore the significant decline in the field since 2015. This may continue. Once a large Japanese public does this, it will move to brokers and significantly reduce costs - and then the example we have given here, can turn out to be even optimistic.

Banks' profits erode, customers point with their feet and leave 

השחיקה בעמלות ניירות הערך של בנק הפועלים
P. descends is proud to be at the forefront of revolution  Digital consulting (Robo Advisor)  In Israel, which has become a real hysteria in the world of investments   And regrets the banner of trading fees as a key part that hurts investor profits. Our clients enjoy the lowest trading fees in the world through the American brokerage giant Interactive Brokers  And we are proud to be part of the Interactive Israel Group, which makes efforts to provide you investors with the most advanced tools and technologies in the world while maintaining the security of your money and the supervision of the Israel Securities Authority, FINRA and 28 other regulators around the world.
We invite you to experience the service and get an initial investment mix at no cost! You can purchase it yourself through your bank account or alternatively go to open an investment account in Interactive Brokers and receive regular updates from us and suggestions for improving the mix depending on the market situation.

Significant savings in commissions = return

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