Low-cost brokerage

Interactive Brokers are the cheapest if you want to buy US shares. Even Aussie shares are at $6. They have their issues and constraints but they do seem to have a loyal following.

PS: I am with CMC

 

@JohnPropChat - can you buy international shares through CMC?
If so - what is the cost? Is it more expensive then just buying Aussie shares?

I am with CommBank and I am most disappointed with how expensive it is to buy international shares.

 

I don't play with international shares directly and I think CMC doesn't let you play with international equity markets. Can do it with CFDs though.

 

Look at IG Markets and Interactive Brokers. Watch out if it's for your SMSF.

 

Anyone using self wealth? I'm a complete novice wrt share buy/sell, I've just used CommSec before, years ago.

Self wealth flat $9 sounds pretty attractive to someone with no idea

Cheers

 

No they aren't Stake is cheaper if you want to buy US shares. They have 0% brokerage.

 

I just use CommSec, I guess seeing as I don't trade, just buy and hold it works for me, 10k brokerage per 1million worth of shares if I buy in 1k lots. Yes brokerage can be cheaper if I buy bigger lots but I'm happy doing it this way with the odd bigger lot every now and then. To answer original post I personally haven't had experience with the brokers you mentioned sorry.

 

Yes I'm using SelfWealth. Started couple months ago. I like the low cost but I don't like the platform, feels like you're on *******' facebook or something - there's profiles with little cartoon pictures, a social area, comparing portfolios weekly performance among peers etc. That part is not my cup of tea personally, but I'm cheap so I accept it as part of the deal!

Just get in and get out, job done

 

You must be over 12, 14, or even 18 years of age? They're possibly trying to position themselves for the next wave of investors coming through.. taking their lead from other well known platforms.

 

29...going on 79.

Yeah what they’re doing is probably genius but I cringe at the childlike nature of an investment platform with animated characters lol

 

Hehe. It would be interesting to ask them about their approach to what should be a plain transcaction platform, not something to hold people there looking at the characters day in day out.

Hopefully it doesn't distract you from making the transactions and the sideline characters don't tempt you away to invest in some animation-generating company!

 

Agree with this. If investing with small amounts or as an infrequent trader, Stake is the cheapest and most flexible at the moment. Other options are the following.

- Interactive brokers, the cheapest if you trade US equities frequently. The brokerage fee is only USD0.005 per share plus spread when converting your AUD into USD (can't find the exact figure at the moment, I think it's 0.3-0.5%). However, there is a 10 USD monthly fee minus any commissions you might have already generated. This fee will be charged to your account monthly whether you trade or not.

Example on a 2000 AUD share purchase per month (let's pretend each share costs 10USD) would be 0.80AUD for the brokerage + 6AUD for the conversion spread = 6.80aud. Also you would need to pay the monthly 10usd fee (13.15 aud) - any brokerage fee you might have already generated. So total monthly cost is 13.15 aud.

- IG markets, this would be good for traders that buy big parcels of shares every now and again. Brokerage fee is 10usd or 2 cents per share, whatever is higher, plus 0.3% spread when converting aud into usd.

Example on a 2000 aud purchase per month. Brokerage 13.15 aud plus 6 aud spread = 19.15 aud. This is a pretty good price to purchase international share, considering that banks charge about 20aud to buy shares on the asx. Also with bigger purchases the price would star looking cheaper as well.

- Stake is the cheapest one for small transaction and also the most flexible. Stake allows the purchase of fractional shares (minimum 50usd in size) for 0aud brokerage, so with a 2000aud it would be possible to buy up to 30 different holdings, so instant diversification even for beginner investors. Stake doesn't charge brokerage however there is a 0.7% spread when converting aud in usd.

Example on a 2000aud purchase of 1 to up to 30 different holdings, the cost is 14aud.


Since I am only investing 1000-2000aud in US shares per month at the moment I have been using Stake. However, if I were to increase the amount of money invested per parcel (to around 4000-5000aud) I would probably switch to IG. I would not choose Interactive Brokers as I dislike the forever 10usd fee per month.

 

Agree with this! Selfwealth is definitely the best for domestic equities, ETFs. Can't go wrong with a $9.5 flat fee. IG markets would be cheaper at $8 but I believe they do not offer CHESS sponsorship.

 

Hehehe....yep low price, I'm not even on FB so see how I go. Got a fair chunk from a property sale so that flat fee..

Liking your blog btw....cheers.

 

That theme in Selfwealth is YUCK! But the flat fee structure is certainly hard to ignore. I don't trade enough so just sticking to plain commsec for now. The small savings is not worth the enough for me to change.

 

Is there any difference in the reporting/recording of transactions?

 

It is not a forever fee.
Required Minimums | Interactive Brokers
Scroll down to "Monthly Activity". The monthly fee is waived when you have at least 100k USD equivalent with them.

 

Thought it was just me being a grumpy old man, not understanding how the youngsters want their platform to be

 

I'm currently with CommSec but find them a bit too expensive compared to the competition.

CMC seems to be pretty cheap, has tax reporting and sharesight integration. I don't mind paying a tiny bit extra if it makes tax time easier, and CMC has been around for a while. I'm not sure if new players like SelfWealth will be around forever.

Thoughts?

 

It is almost irrelevant if Self Wealth is around forever or not. It is CHESS sponsored so not really an issue. I'm with Bell Direct at $15 a trade their platform is ok I guess. I have looked at Self Wealth and CMC but don't believe I'll save anything on brokerage. I'm likely to purchase more frequently with a cheaper brokerage rate. Won’t be able to help myself…

I've only ever heard one person say something bad about CMC and they are a full time futures trader.