CommSec Review: Pros And Cons

CommSec, owned by Commonwealth Bank, is Australia’s largest online trading platform. It was founded nearly thirty years ago in 1995, and as of 2023, has been awarded Money Magazine’s Best Feature-Packed Bank Online broker for the 16th year running.

The trading platform is available via web browser, as well as through an app available on both iOS and Android.

As per industry standard, the minimum trade once joining CommSec is $500. This means that to trade with CommSec, you must first be willing to invest $500.

When trading with CommSec, users have access to live pricing. This means the market is updated in real-time, so investors can know exactly what is happening with the stocks they are choosing to invest in. It can also help users keep track of their investments, and see how they move at any time throughout the day or week.

Additionally, all ASX trades that take place via CommSec are CHESS-sponsored, which means shareholders will be given their own HIN number. In the unlikely event that something were to go wrong with the trading app–such as if it went broke–having shares that aren’t CHESS-sponsored would mean your ownership could be in doubt.

Therefore, CHESS-sponsored trades are preferred, so it is a benefit of CommSec that this is offered–even if it means slightly higher fees compared to brokerage platforms that deal with custodial ownership. The fees of CommSec are explained further below.

Market Access

As an Australian trader, you’re likely going to want access to the ASX. While most share trading platforms available in Australia automatically give you access, there are some that won’t. Luckily, CommSec isn’t one of them: users have access to the ASX in order to trade shares.

CommSec also provides access to international markets, for those wanting to take their trading further afield and diversify their portfolios. CommSec users can access 25 international markets, located across US, EK, Europe and Asia.

Further, CommSec allows its users to trade exchange-traded options (including cryptocurrency ETFs), warrants, and CFDs.

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It’s important to understand the fees associated with an online broker, as you want to make sure the potential return your investments can offer you (although never guaranteed) will outweigh such fees.

At CommSec, the fees are relatively straightforward when it comes to the stock market. The brokerage fee for buying and selling ASX shares is 0.1% of the transaction value, with a minimum of $19.95 and maximum of $29.95 per trade.

When trading ETFs, the fees are the same.

Does CommSec Charge an Account Fee?

No, CommSec does not charge a monthly account fee. It also does not charge a subscription fee, which is what some online brokers charge in lieu of the monthly account fee. This means having a CommSec account doesn’t cost you anything unless you are actively trading.

Are there International Trading Fees?

Yes, CommSec does charge a fee for buying and selling international shares. This is US$65, or 0.75% of the option premium–whichever is of greater value. There is also a $US1.10 charge per contract, however this figure can vary depending on market performance.

Additionally, there is a foreign currency conversion fee of 0.60% for all international share trades.

Not everyone is a seasoned investor and, for those new to the field, being able to access trading guidance via an online stock broker is a great draw card. Many platforms offer access to research on stocks by certified fund managers, such as Goldman Sachs or Morningstar, and it’s worth noting whether the platform you are choosing does, too.

At CommSec, you can access research on stocks by a range of companies including Morningstar, Credit Suisse, and Citi. CommSec also offers users an in-house learning centre, featuring videos, tutorials and webinars. There’s also a demo platform available for practice trading, meaning CommSec users can feel better equipped to make trading decisions after practising.

Keep in mind, however, that there is no “practice makes perfect” when it comes to stock trading.  Investments are always a risk, no matter how seasoned of a trader you are.

Customer Support

In addition to its trading guidance capabilities, CommSec also provides customer support to its users via an in-app live chat function, email and phone support.

The phone line is open from 8am to 6pm, Sydney time, Monday to Friday. However, CommSec tells its customers to note that while the market is open–from 10am to 4pm weekdays–there may be delays in contacting the help centre.

Discounts and Benefits

Until October 31, 2023, CommSec is offering new users a $0 brokerage fee on their first 10 trades. This is up to a maximum trade value of $50,000 each.

At the time of writing, there are no other additional discounts or benefits available to new or existing CommSec customers.

Who Is CommSec Best For?

Ultimately, CommSec has been rated as Forbes Advisor as a top choice for Australian investors. Being owned by one of the big four banks provides users with assurance; however, it does mean higher fees than independent competitors.

Due to its access to the international markets and its educational tools, our analysis has determined that CommSec is best suited to investors wanting to access the global trade market, or new investors wanting to learn more.