Alternative to Westpac

[zoozoofar]

Hi,
Still new to stockbroking and its terms. I started investing in April (missed bear market in March), and have been using Westpac Online Invest till now. I am quite happy with the platform but spending $19.95 brokerage fee and min $500 per trade is bit too much to my liking.
Is $500 minimum to buy for ASX shares?
I almost opened CMC Markets stockbroking account but found negative reviews (not sure if true or fake reviews). Does anyone have any feedback or experience using CMC Markets? Or any other online brokers for comparison?
Any difference between online brokers and big banks (like Westpac or Commsec)?
Thanks.

 

[Sharkman]

$500 is the minimum marketable order, i think that's set by the ASX, not by the brokers. but you need to be aware that the "bang for buck" transaction size (where you get the best brokerage % as stated in the schedule eg. 0.11%) is much higher than that, typically around $20K for the CHESS brokers. any smaller and brokerage chews up more and more % of the order size.

the big difference with many online brokers is that they use the custodian/nominee account model ie. when you buy something you are the beneficial owner but the broker is the legal owner of the stock. this means that in the miniscule but not zero chance that the broker collapses, you could potentially lose everything held there. that's a big reason why they're able to offer cheaper brokerage rates as they don't have as many overheads like clearing fees etc., it's more efficient from the broker's POV to lump all customers' holdings together. whereas with CHESS brokers you remain as the legal owner of your holdings, so if the broker collapses those are guaranteed to be safe.

you need to decide for yourself whether you're ok with the risk of losing most or all of your capital held with a nominee account broker in the event that the broker folds, in exchange for the cheaper brokerage rates. the odds of that are negligible, but it has happened before.

 

[cutz]

Hi zoozoofar ,

Sounds like you're an investor, I'm also in the process of opening a similar account to transfer some CHESS holdings ( ANZ/CMC in my case ) although my motives are much different to yours.

Stock brokerage rates seem to be similar across the big four, have you considered just saving up in order to buy large parcel ? If you are comfortable using a US based broker, 6 dollar minimums, great for building a portfolio in small lots.

 

[zoozoofar]

Thanks for the advice. At least it clears up the pros and cons between using big banks and online brokers. Is there any online broker provide stockbroking? Or is it only banks? Sorry, I am still learning

I tend to stick on minimum buy order ($500-ish), although it may be costly in the long run. But I do consider buying large parcel if it's the right time. I probably stick to ASX for now, not saying I don't want to venture to US shares.

 

[over9k]

commsec are $10/order under $1000.

 

[frugal.rock]

Selfwealth is Chess sponsored and ALL trade sizes are $9.50
You get what you pay for though... although their platforms will no doubt improve. They are fairly new, and listed on the ASX, so it's in everyone's interest that there stuff gets better.
IE; public company, shareholders, customers pushing etc.

I do this,
Use westy for your live data and trade from selfwealth. Not the most ideal method, but will do for a while...

 

[Habakkuk]

For small parcel sizes check out
https://www.openmarkets.com.au/technology/retail

$5 up to $2,500
$15 up to $15,000

 

[cutz]

For small parcel sizes check out
https://www.openmarkets.com.au/technology/retail

$5 up to $2,500
$15 up to $15,000

Hi @Habakkuk Great looking rates ! Do you use this broker ?

 

[cutz]

Hi @Habakkuk Great looking rates ! Do you use this broker ?

Hi, Reason I ask is because this company is linked with several other platforms and they all look pretty good, with the benefit of CHESS. Just wondering if one master account will link you up with all ?

 

[Habakkuk]

Hi, Reason I ask is because this company is linked with several other platforms and they all look pretty good, with the benefit of CHESS. Just wondering if one master account will link you up with all ?

No, I don't use them and only mentioned them as an alternative to Westpac/Commsec.
Not sure what you mean with your other question. They have other platforms, but I think you will have to pay for them or make a number of trades per month. I don't know any details.

 

[speculativedave]

Hi,
Still new to stockbroking and its terms. I started investing in April (missed bear market in March), and have been using Westpac Online Invest till now. I am quite happy with the platform but spending $19.95 brokerage fee and min $500 per trade is bit too much to my liking.
Is $500 minimum to buy for ASX shares?
I almost opened CMC Markets stockbroking account but found negative reviews (not sure if true or fake reviews). Does anyone have any feedback or experience using CMC Markets? Or any other online brokers for comparison?
Any difference between online brokers and big banks (like Westpac or Commsec)?
Thanks.

I use Westpac, E*Trade and Nabtrade. Nabtrade is the cheapest including option trading. My reasons of staying with the banks is transfer of dollars is easy, quick and no hidden fees. I can make trades instantly without having to leave a bundle of money doing nothing at some strange broker. I find Westpac the easiest to use and like their charting tools.

 

[cutz]

Nabtrade is the cheapest including option trading.

Have to disagree there, NAB options brokerage looks to be right up there in costs !

 

[speculativedave]

Have to disagree there, NAB options brokerage looks to be right up there in costs !

It is the least expensive versus E*trade and Westpac, not the cheapest from other brokers , but I use banks for reasons stated