This is disappointing news for COL Financial subscribers/account holders. It appears that when you transfer funds to your COL Financial account via bank transfers, bank charges will now apply.
This is because transferring funds to COL Financial for your further stock transactions are treated like bills payment, thus the fee. And starting this year, COL Financial refused to subsidize them. See notice below:
COL Financial Bank Charges notice.
With the stiff competition in the stock brokerage business, I don’t think this is a good move by COL Financial. They better offer more value added services in order to stop account holders from moving elsewhere.
Back in the late 1990s, I received a steady stream of research reports from prestigious Wall Street brokerages recommending the stocks of, you guessed it, publicly traded pay phone companies. There were four of them still in business at the time, and as the reports pointed out, they were all attractively “cheap” by traditional valuation measures, such as their price-to-earnings multiples or market capitalization-to-revenues ratios. Not only that, but recently enacted deregulation was allowing pay phone operators to boost the prices they could charge for local calls, leading to predictions of new “windfalls” on Wall Street and in the financial media. Of course, in hindsight, we can see that those forecasts were wildly off the mark and that there was a clear reason those stocks were such bargains: They were well on their way to oblivion. The widespread adoption of cellular phones had already started, and it wasn’t going to stop. But at the time, many investors dropped their coins into the slots of these classic value traps and never got them back.
I have always welcomed the idea of ETF’s (Exchange Traded Funds) in the local bourse. Think about it, no more minimum holding periods nor sales load to worry about when buying and selling ETF stocks in the local stock exchange, except of course for the usual minimal fees and taxes.
In my opinion, this is a more liquid type of investment than regular mutual funds or UITF’s in a sense that you can sell your shares anytime without worrying about minimum holding periods and their corresponding charges. Besides, this is still a managed fund, thus you need not devote any more time in research for stocks to pick.