Low-cost brokerage

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

 

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.

 

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

 

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?

 

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.

 

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!

 

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.

 

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

 

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

 

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

Have you been able to do it for more?

 

Yes I have order bigger than 25k

 

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

 

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!

 

@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?