Low-cost brokerage

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by wombat777, 3rd May, 2017.

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  1. Nodrog

    Nodrog Well-Known Member

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    I use NABTrade. I don’t have many transactions and I’ve been happy enough with them:

    71F1DC80-5F89-443A-93DD-661B38494857.jpeg
     
    Jack Chen likes this.
  2. Nodrog

    Nodrog Well-Known Member

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    NabTrade also offer a high interest account that currently pays 2.15% interest. Quite useful in the SMSF to park cash waiting to be invested in the market. Higher rates are harder to source compared to investing in personal names.
     
  3. PandS

    PandS Well-Known Member

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    it makes senses to use platform where you had most of your money there, the connivence and cost of shifting money around probably save you similar amount in brokerage fee.
    commsec has very comprehensive tax report so I like it, takes me 20 minutes to get all the data I need every year

    Say with Commsec, all my money is with CBA in offset and I have 4 trading accounts with them
    I can buy and sell shares without needing a dollar if I get in and out within 2 days, they settle the difference and chuck the profit in my account

    and for other stuff where I don't trades and just buy I just schedule the money to come across on the day of settlement, save 3 days of interest in offset
     
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  4. Jack Chen

    Jack Chen Mortgage Broker Business Member

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    Totally forgot about this! I make use of this all the time. Do other brokers require cleared funds in their account before letting you buy shares?
     
  5. PandS

    PandS Well-Known Member

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    Not sure about other platform, Commsec doesn't as long as you don't forget to settle but I have never made the mistake not to settle on time, as soon as parcel is executed I login to netbank and schedule the transfer on the day of settlement.

    I think their only requirement is first few trades of brand new account they check your account for balance then never again after that.
     
  6. Snowball

    Snowball Well-Known Member

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    Yes, my CMC and SelfWealth accounts both require cleared funds before purchase.

    Didn't realise it was possible to use the 'promise I'll pay you back' line!
     
  7. Jack Chen

    Jack Chen Mortgage Broker Business Member

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    Hmmm that's disappointing, because I usually let my orders linger on the market for days/weeks until my desired price is met, then I schedule a transfer on settlement day. I hate the thought of cleared funds just sitting there being unproductive.
     
  8. PandS

    PandS Well-Known Member

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    well these contract are enforceable so they can go after you plus you do it a few times and not settle they banned you from the platform :)
    fairly strict rules around financial contract
     
  9. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Important you transfer with CBA if its a Commsec (or Westpac if its Westpac Broking etc) to avoid transfer delays. Its T+2 not T+3 and that one day can be a default. What is the default interest rate ? Some its 24% like a card. Others add fees as well...see below for Commsec

    Many platforms take the cash when you contract and credit when a sale settles. Others have a linked CMA and its all accounted when its settled. Cleared funds can also be a issue. I have also seen cash accounts where the credit value has a hold on it for pending settlements for a purchase.

    Commsec fees for fail trades

    Fail fee – buy or option $100.00 per day

    Fail fee – sell $100.00 per day or 0.1%, whichever is greater

    Late settlement fee – Buy or Short Sell $100
     
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  10. willy1111

    willy1111 Well-Known Member

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    I think they only accept buy orders for upto $25k worth of stock without deposit.

    Have you been able to do it for more?
     
  11. PandS

    PandS Well-Known Member

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    Yes I have order bigger than 25k
     
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  12. Redwing

    Redwing Well-Known Member

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    Handy - For those times when you wish to liquidate one position and take up another with those funds
     
  13. jaklap90

    jaklap90 Active Member

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    Hi guys, as I previously recommended stake.com.au I would like to change my recommendation as they have significantly increased their fees.

    The fees used to be 0.7% spread conversion fee for transactions. However this has been changed with no prior warning to 0.70USD for every 100AUD which, at the current exchange rate, equals to a fee of 0.95%. This is almost a 25% increase in fees in less than a year!
     
  14. jaklap90

    jaklap90 Active Member

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    @Nodrog I saw that NABTrade charges a conversion spread of between 0.5-0.8% per transanction value on international securities. Do you know if this fee is charged also on dividends paid into your brokerage account from international equities?