Cash Brokerage on Gold ETFs

[grkiran12]

Hello Investment Gurus,

I have a Q about Gold ETFs.
I was trying to invest in Gold ETF (GOLDBEES) with my online trading account in icicidirect.com.
When I clicked on "BUY", a pop-up came up saying that "Cash Brokerage is applicable for ETFs".
I am a small investor and planning to accumulate Gold ETF units on regular intervals.
So, my Q is "Is it advisable to buy units from Gold ETFs by paying cash brokerage??"
Because I will be paying more money for units of gold ETFs than for physical gold as I am paying current market price of 1gm of gold + brokerage.
Does anybody have an idea, how much this brokerage will be in ICICIDirect.com???

Your answers will be highly appreciated.

Thank you in advance

Have a nice day

Best regards

 

[palka]

Whenever you buy something you have to pay something to the person who is facilitating this. So you will have to pay some brokerage here.

The applicable brokerage will be 0.55% + Taxes if you opt for fixed brokerage.
If you buy physical gold will will certainly pay more than you will pay here. Because if you buy from a bank they will charge you a premium. If you do not believe me go to any bank branch and offer to buy gold. When you ask about the price premium they will give you various reasons like purity, certification, reputation of the bang etc.

You will face even more difficulty when you try to sell it.

If you want to know about variable brokerage structure of IDirect click here

 

[seetharamank]

kiranji when u buy gold from banks or shops they add16% as wastage apart from the regular cost it is much much cheaper to buy gold etf since it will reflect the near market rate every miniute of gold

 

[Subhadip]

Hello Investment Gurus,

I have a Q about Gold ETFs.
I was trying to invest in Gold ETF (GOLDBEES) with my online trading account in icicidirect.com.
When I clicked on "BUY", a pop-up came up saying that "Cash Brokerage is applicable for ETFs".
I am a small investor and planning to accumulate Gold ETF units on regular intervals.
So, my Q is "Is it advisable to buy units from Gold ETFs by paying cash brokerage??"
Because I will be paying more money for units of gold ETFs than for physical gold as I am paying current market price of 1gm of gold + brokerage.
Does anybody have an idea, how much this brokerage will be in ICICIDirect.com???

Your answers will be highly appreciated.

Thank you in advance

Have a nice day

Best regards

Taxes will come..if u buy physical gold..
also u can not know the exact market value of the day ur selling..also keeping physical gold is risky..
go for goldbees gold etf...
happy trading:clap:

 

[uncleji]

Can anyone tell me about cash brokerage on gold ETF SIP through icici direct.
Without SIP currently it is 27.58 Rs per transaction.
I want to know whether same cash brokerage will apply for SIP gold etf also ?? in each transaction?

 

[lazytrader]

physical gold storage and security costs do not exist with e-gold, easier sale and purchase, lower transaction charges. it's all good. go for e-gold imo.

 

[palka]

Can anyone tell me about cash brokerage on gold ETF SIP through icici direct.
Without SIP currently it is 27.58 Rs per transaction.
I want to know whether same cash brokerage will apply for SIP gold etf also ?? in each transaction?

You will pay the usual brokerage. You are paying unnecessary attention to the word 'SIP' . The amount of brokerage will depend on the plan you are on ( please refer to my post above) and the amount of your transaction.

Mutual fund transaction charges are different issue.

 

[prakashk]

How about Gold ETF (GOLDBEES) purchase with Angel broking ?

Is there anyone who purchased it with Angel ?

 

[xxdiesel]

It doesn't matter which broker is involved. Only the brokerage will vary, that too not significantly.

My question is, why is the price of GOLDBEES more than Kotak Gold or QGOLDHALF? is it advisable to buy QGOLDHALF?

 

[palka]

You can buy any GOLD ETF. The small price differences arise mostly due to expenses and the way they are charged. 1 yr return of all these ETFs range from 20.67 - 20.93 % (source: valueresearchonline).

QGOLDHALF has smaller amount of gold (.5 gm) as one unit, whereas other ETFs have 1gm as one unit. so there is a price difference.
Happy investing