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CommSec review: CommSec share trading account

Details about CommSec share trading account

September 11, 2022

Company background

Launched in 1995, CommSec is one of Australia's oldest share trading platforms for retail investors.

Today, it's among the country's largest and best-known online brokerages, offering Australian and international shares, exchange-traded funds (ETFs), and self-managed super fund (SMSF) accounts.

You don't need to be a banking customer of Commonwealth Bank to open a CommSec share trading account, although it can be advantageous to open up a Commbank everyday account.

What are the key features of a CommSec share trading account?

The CommSec share trading account offers useful features for both novice and advanced investors. However, the platform is simple enough to use that new investor won't be too overwhelmed.

While its brokerage fees aren't the lowest on the market for trades of more than $1,000, there's no minimum trade requirement on your standard Australian shares account. This means you won't be charged an inactivity fee or any other monthly fee.

Plus, one of the platform's biggest drawcards is the free high-quality data feeds and research on all listed securities.

Fees
★★★★★ 3.8/5

Brokerage fees are low for small trade sizes but increase the higher the trade. On the plus side, there is no inactivity fee.

Trading tools
★★★★★ 4.3/5

CommSec offers a long list of conditional orders plus margin trading and charting tools.

Research and Education
★★★★★ 4.8/5

CommSec offers broker analysis on stocks, company announcements plus regular market updates.

Available securities
★★★★★ 3.5/5

CommSec offers shares, ETFs, warrants, and options.

Customer support
★★★★★ 3/5

There is no live chat but you can phone or email from 8 am to 7 pm, Monday to Friday.

Single Commonwealth Bank login

Current clients of Commonwealth Bank can use a single login to easily switch between both CommSec and NetBank, which helps to keep all finances in one place. If you choose to go down this path, it pays to set up a Commonwealth direct investment account (CDIA). A CDIA is the same as a regular transaction account. However, it can also be used as a trade settlement account, which is viewable right next to your current bank balances within NetBank. Plus it gives you the option of having a debit Mastercard attached to the account.

CHESS-sponsored shares

The Clearing House Electronic Subregister System or CHESS is a management system used by the Australian Securities Exchange (ASX).

CHESS sponsorship is automatically applied to all newly opened CommSec share trading accounts.

If your account is CHESS-sponsored, it will have a unique holder identification number (HIN).

Think about it like insurance. Under a CHESS model, the shares are in your name and you can update key details. So on the off chance, that anything happens to the broker, you have access to shares.

Real-time prices, news, and research

All CommSec share trading accounts provide clients with up-to-date market prices and data.

With a CommSec share trading account, you're able to stay up-to-date with the latest news and releases as they happen. You can access reports, videos, and analyses from CommSec analysts directly within the platform.

Create personalized watch lists

One of the key benefits of CommSec is it allows investors to create personalized lists that view live pricing, research, and data points.

CommSec Pocket

The company has diversified into an app called CommSec Pocket, which allows investors to start trading with as little as $50.

This is to help newer investors get started, with traditional brokers setting minimums of $500 before they can begin trading.

With CommSec Pocket, you can't buy and sell shares, but you will gain access to 7 themed ETFs and pay just $2 per trade.

Trade international shares and ETFs

CommSec allows you to invest in overseas markets by opening a CommSec international securities trading account. Within a single account, clients have the ability to buy shares in US companies such as Apple and Google along with global stocks and ETFs listed in over 25 overseas markets.

Browser and app account access

CommSec shares trading account holders can log in and place trades through a number of portals. Trades can be placed online via a web browser, through the CommSec mobile app for iPhone and Android, or simply by calling up and placing an order over the phone. Even without Internet access, you have the peace of mind that comes with having phone access to the CommSec office.

Advanced trading tools

One of the key features of CommSec is its trading tools, which include the following:

Advanced charting
Create personalized watchlist
Live prices, research, and market data
Research tools
Portfolio health checks
Margin and trading tools
Weekly stock recommendations from experts

What markets can I trade in with a CommSec share trading account?

Depending on which CommSec trading account you choose, you'll be able to trade in a number of different markets:

Australian shares. Buy shares in Australian companies listed on the ASX.
International shares. Buy shares in international companies listed on more than 25 of the biggest global stock exchanges by opening an international account. Exchanges include the NYSE, NASDAQ, LSE, and TYO.
Options trading. Trade options that allow you to buy more shares in a company at a specific price level.
ETFs. Buy and sell listed funds such as ETFs and other exchange-traded products traded on the ASX.

Additional trading options

Aside from trading in various markets, CommSec allows you to trade the following:

Warrants
Fixed income securities
Margin loans
CommSec Pocket micro-investments.

Who is CommSec designed for?

CommSec is designed for pretty much anyone, but its ease of use and beginner features can certainly help those newer to the market.

Some of the more advanced trading features are probably more suited to those who have traded before. But this all depends on what account you choose to start with.

The majority of clients can trade a range of assets through a basic CommSec account although signing up for direct investment has some advantages.

For total novices looking to start investing small amounts of money, there is CommSec Pocket. For serious traders, there is CommSec One, option accounts, and margin loan accounts.

What account types are available with a CommSec share trading account?

Through CommSec, you can open an Australian share trading account and an international share trading account.

In terms of trade settlement, you can use either a CommSec CDIA, your own account or you can trade through margin loans.

Trading with the CommSec CDIA

If you choose to conduct trades using the CDIA, you'll benefit from lower brokerage fees and no account-keeping fees. Plus, you can earn tiered interest on funds in your account and have access to all free live trading tools and market research.

Trade shares from $10.
No account-keeping fees.
Earn interest on funds over $10,000.

Trading using your own cash account

If you choose to trade with CommSec using your own cash account, you'll still have access to all the same tools. However, you'll be charged a higher brokerage fee (starting at $29.95).

Trade shares from $29.95.
Access free live trading tools.

Margin trading

If you choose to trade using a margin loan, you get access to the same benefits such as free trading tools and live market data. However, you'll also get access to risk management tools and portfolio monitoring.

Trade shares from $10.
Trade shares and invest in managed funds using borrowed funds.
Access risk management and portfolio monitoring tools.

What types of customer support are available from CommSec?

A broker the size of CommSec is naturally expected to have a high level of customer support access. If you have queries or problems, there are a number of choices:

Frequently asked questions (FAQ). The CommSec FAQ page is fairly in-depth. You can also download product disclosure statements and information guides throughout the site.
Phone support. CommSec has 2 English-speaking numbers for clients located both within Australia and overseas. It also has a Cantonese/Mandarin number for use within Australia.
Email support. The support email address allows clients to articulate their problems via text. Questions are usually answered within 1 business day.
Questionnaire form. Unfortunately, this form doesn't lead to a live chat session. The questionnaire form on its support page feels a little redundant, especially because attaching any supporting screenshots or documentation will open up an email window anyway.
Twitter support. CommSec has now opened a @CommSecSupport Twitter handle and it goes some way to supplementing the broker's lack of a live chat feature.

Overall, CommSec customers can expect a reasonably high level of customer support for an online broker. The only disappointing feature about CommSec's customer service is the fact that it doesn't have a live chat option. The live form on its website isn't actually live, and it can take 1-2 days for a response to come through via email. That's frustrating for clients who have short questions that could easily be answered on the spot by a live chat representative.

What are the fees I can expect from a CommSec share trading account?

There are a few basic fees and brokerage charges you need to be aware of when using CommSec:

Brokerage fees. These vary depending on the amount you're trading and the cash settlement method you choose:
Trades are placed through a CDIA cash settlement account. If you're a CHESS-sponsored customer and settle through either your CDIA or CommSec margin loan account, you'll pay $10 brokerage for trades of Australian shares up to $1,000. For trades between $1,000 and $10,000, you'll incur a $19.95 brokerage fee. This fee rises to $29.95 for trades between $10,000 and $25,000 and to 0.12% for trades over $25,000.
Trades are placed through a non-CDIA cash settlement account. If you choose to settle your trades through a different cash settlement account, then trades up to $10,000 will incur a $29.95 brokerage fee. This fee rises to 0.31% for trades over $10,000 and $59.95 for trades over $10,000 that are placed over the phone.
International fees. Brokerage fees vary depending on which country the shares you want to buy are listed. Fees for US shares are US$19.95 while shares listed on the London Stock Exchange are US$39.95 or 0.40%, whichever is greater.
Phone fees. Trades settled over the phone charge much higher brokerage fees. Transactions up to and including $10,000 charge $59.95.

Ongoing account fees. You pay nothing when you first open a CommSec share trading account. There are also no monthly account-keeping or inactivity fees for your Australian account. However, there is an annual $25 fee for international accounts if you don't conduct at least 1 trade during the year.

Is CommSec worth the fees?

While it is true that reducing fees is a great way to improve your investment returns, for a lot of investors, using CommSec could be worth the additional expense.

CommSec is certainly more expensive than discount online brokers, even though they do not have a management or inactivity fee.

The reason why it might be worth the additional money is due to its tools, features, and ease of use. This can be especially useful for newer investors.

How do I pay for shares on a CommSec share trading account?

You have a few options when paying for your share trades through CommSec. When you buy shares, the settlement must occur within 2 business days – this is called "T+2". This means your funds will need to be available by this date or you'll incur a fee. Options include the following:

Automatic direct debit. CommSec can automatically direct debit funds from your nominated bank account. This is the simplest and most common way to pay for your share trades.
BPAY. The alternative to automatic direct debit for Australians is through BPAY. Your BPAY details can be found within your CommSec share trading account profile page and can be used as an alternative.

How do I open a CommSec share trading account?

When you're ready to open a CommSec share trading account, click the Open Account button on the CommSec website. You'll be faced with the following screen asking whether you'd like to trade with a CommSec cash account or your own cash account:

Selecting the first option to trade using CommSec's cash account will give you a new CDIA, which essentially means you get cheaper brokerage fees. You can choose to trade from an account outside of CommBank, but you'll be hit with higher fees. You can read more about what these options mean in our CDIA guide. Once you've selected the account you'd prefer to use, follow this 4-step process:

Complete residency and ID check
Provide personal details
Register interest
Download trading platform and mobile app

To complete the account opening process, you must be 18 years or older and have the following documentation handy:

Name
Address and contact details
Valid email address
Mobile phone number
Tax file number

Nigerian investment platform Chaka secures $1.5M pre-seed after bagging country’s first SEC license

July 19, 2021

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When Robinhood raised its $3 million seed round in 2013, it was a couple of months old with huge ambitions of democratizing securities access to the underserved and unserved. Robinhood has since taken the world by storm and grown to serve more than 30 million users with its zero-commission trading.

In the past, we’ve seen such growth trickle down to other regions across the world, inspiring similar businesses. Robinhood is no exception. Several platforms have sprung forth to bring stock trading opportunities in their respective markets. In Nigeria, at least four platforms offer both local and foreign stocks to individuals. Chaka is one such platform. Today, it is announcing the close of its $1.5 million pre-seed round to power digital investments for individuals and businesses.

The pre-seed round was led by Breyer Capital, while 4DX Ventures, Golden Palm Investments, Future Africa, Seedstars, and Musha Ventures participated. It’s the second joint deal for 4DX Ventures and Breyer Capital in the space of two weeks, the first in Egyptian social e-commerce platform Taager.

It is a well-known fact that even before Robinhood, the average American actively participated in stock trading. According to a survey by Gallup, about 60% of Americans owned some form of stock in 2000; that number was down to 55% in 2020. This was partly due to the global financial crisis that occurred in 2008.

The crash also affected the Nigerian capital market and because Nigerians lost a lot of money during that period, stock trading is mostly frowned upon by most of the public. Yet for the average Nigerian interested, participating in trading local stocks is hard; and practically impossible for foreign ones.

Tosin Osibodu, while in the U.S., recognised this problem and came back to Nigeria to start Chaka officially launching the company in 2019. According to Osibodu, Chaka wanted to create opportunities for Nigerians to invest in dollar assets and at the same time allow foreigners to invest in Nigerian assets.

“If there’s more demand in the market, over time, we expect there’ll be more supply. If you fast forward over a long period of time, we expect that our local capital markets will continue to grow,” he said to TechCrunch in an interview. “We will provide borderless digital access to multiple solutions, and so it’s not just about Nigerians investing in the market, it’s about making the markets accessible for people locally and globally.”

For the most part, Chaka has executed on one front. The platform Nigerians access to more than 10,000 stocks and ETFs trading on local and foreign capital markets. The CEO maintains that the platform has levelled entry barriers for borderless investments in Nigeria by providing customers with compliant access to the capital market.

“The thing about markets is that they have demand and supply with barriers to entry. We’re committed to lowering those barriers in local markets and by lowering barriers to investing for retail, more people will come to the market. In fact, more people came into the Nigerian stock market through us last year than any other broker. It’s like a demand-supply flywheel,” the CEO added.

Chaka’s local assets are registered with the Nigerian Stock Exchange (NSE) Central Securities Clearing System (CSCS) and regulated by the Securities Exchange Commission of Nigeria (SEC). Dollar assets, on the other hand, are regulated by the US FINRA and the US SEC.

Nigeria’s SEC warns investment platforms to stop trading ‘unregistered’ foreign securities

In April this year, digital investment platforms were caught in crosshairs with Nigeria’s SEC. The regulator declared their activities illegal and warned capital market operators working with them to renege on providing brokerage services for foreign securities. Unlike Robinhood which offers online brokerages, Nigerian investment platforms do not. Chaka, for instance, partners with Citi Investment Capital in Nigeria and DriveWealth LLC in the U.S. to issue stocks and securities.

According to Nigeria’s SEC, the bottom line was to bring the activities of these platforms under its purview as part of its efforts to safeguard the investing public. Although Osibodu claims Chaka had always engaged the SEC since the company was formed in 2019, it did not seem that way last December when the regulator singled out the two-year-old company for “selling and advertising stocks.”

The event set the precedence for the regulator’s all-out attack on other digital investment platforms, giving Chaka enough time to engage and conclude talks in about half a year. And last month, Chaka acquired the first fintech license issued by the SEC, making it the only investment platform operating as a digital sub-broker.

“When we launched, we kept SEC in the loop. But now, over the last six months, we’ve engaged with them, showed them our business models, the benefits, the markets. Now we’re proud to have SEC’s first fintech license. We believe that the most important thing is that the market has clarity and understands the regulations required to be registered. And we’re thrilled to have broken new ground and cleared up what it takes to be able to offer services in the market,” he said.

With the new license, the company can swiftly focus on what lies ahead. Osibodu says the license expands the scope of what Chaka can achieve. He asserts that Chaka can power multiple brokers and provide access to different digital investment offerings in addition to being a digital sub-broker.

Image Credits: Chaka

Asides from Chaka’s traditional stock trading app for retail investors, it also offers Chaka SDK which allows asset managers and financial institutions to offer digital investments and Chaka for Business for direct business onboarding and trading tools for institutional investors.

Jim Breyer of Breyer Capital, commenting on the investment said, “We are proud to combine efforts with a company that is levelling the investment playing field for Nigerians [and Africans at large]. We’re confident in the value Chaka provides through its digital tools, and we look forward to playing our part in supporting Chaka’s team on their mission to drive borderless investments in Africa.”

Osibodu says the company will use its pre-seed investment to expand footprints to Ghana and other West African markets. Improving its technology and services and securing partnerships with major financial institutions, including apex ones, is also a priority.

“As we advance, I think something that we’re just very focused on is how do we continually reduce access barriers, and we are proud of the initiatives that we’ve brought and are to come. Watch this space for more partnerships, even with apex institutions in our markets as well.”

Rising African venture investment powers fintech, clean tech bets in 2020