Brokers can survive a cut in commission

I refer to the Margin Call article in your Markets section ('Small brokers need to face reality,' Business 2, February 5) regarding brokers' daily average turnover in December.

From personal experience (I myself was a broker a couple of years ago), the monthly commission of $170,000 - based on 20 days trading - is enough to pay for rent, staff salaries, administrative expenses plus overheads and my salary of more than $30,000 plus per month. At that time, the rent was $20 per square foot compared with $10 per square foot for an 800 sq ft office at present.

Small brokers will survive if the minimum commission is not abolished as our overheads are minimal compared to the top 14 brokers who pay for prestigious office addresses, salary and housing allowances.

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