Personal Finance

looking for share swapping club to trade Canadian stocks

  • Last Updated:
  • Jul 12th, 2015 11:13 am
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[OP]
Newbie
Jan 31, 2009
6 posts
Calgary

looking for share swapping club to trade Canadian stocks

I have read a fair amount about "share swapping clubs" were you can apply for a "share transfer" of one stock certificate in order to start investing in dividend paying stocks without going through stock brokers with their high fees but have as yet been unable to find info on any particular clubs that deal in Canadian stocks. Is there anyone that can point me in the right direction. Tks to all RFDers for your responses.
5 replies
Deal Addict
Feb 26, 2008
1821 posts
1281 upvotes
These arrangements were popular back in the 1990s when trading commissions were relatively expensive (ie, $30-$40 per trade). However, commissions have declined drastically over the past 15 or so years, to the point where there doesn't seem to be much of an advantage to use a swapping club. As a rule, $10 trades are easy to find, and it's not even too challenging to get $7 trades through the big banks' brokerage arms. Unless you plan on churning your portfolio heavily, it's pretty hard for commissions to be a meaningful expense.

The only value that I can see with the swapping club would be if you are just starting out and have very little capital to invest. If you have less than say $25k, it's a bit tougher to find brokerage accounts with low fees (ie, no maintenance fee and low commissions). However, for people with less than $25k, I'd recommend starting out with a basic index fund while you build your savings...
[OP]
Newbie
Jan 31, 2009
6 posts
Calgary
Appreciate the link. Happy Investing. I'm just starting out. Tks again
[OP]
Newbie
Jan 31, 2009
6 posts
Calgary
I appreciate your thoughts. I am just starting out with limited funds and other posts had suggested that getting one share to start and then "Dripping" and doing "Share Purchasing" (ie SPP) with the Canadian stocks that allow that is a great way to eliminate most if not all fees and sometimes getting discounts - thus more bang for my buck. Tks.
Jr. Member
Sep 26, 2009
129 posts
16 upvotes
In the 1960s, my dad belonged to at least one "investment club". I remembered the name (which was an organization they all belonged to but spelled backwards), and in 2015 it has no internet mention under that name so probably does not exist. I know that's not what the OP was asking about, but it does fall under the rubric of reducing or spreading out broker fees.

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