CommSec or CommSux?

[hardstylez]

I am really new to trading and I have opened an account through commsec (mainly because I feel a small amount of comfort knowing that my everyday and saving accounts credit cards etc. are with CBA). I have read through a lot of the threads regarding commsec and their fees and I am starting to wonder whether commsec is the way to go for someone (ie. me) who is a complete novice in trading stocks. I've done some quick calculations and it seems that IF I make any profits on commsec, it will all be chewed up by the brokerage fee and conditional orders fees.

are there any other online brokers that anybody can suggest to me that I can do a little bit of reading on.

Thanks for all advice and suggestions

 

[Steve C]

I am really new to trading and I have opened an account through commsec (mainly because I feel a small amount of comfort knowing that my everyday and saving accounts credit cards etc. are with CBA). I have read through a lot of the threads regarding commsec and their fees and I am starting to wonder whether commsec is the way to go for someone (ie. me) who is a complete novice in trading stocks. I've done some quick calculations and it seems that IF I make any profits on commsec, it will all be chewed up by the brokerage fee and conditional orders fees.

are there any other online brokers that anybody can suggest to me that I can do a little bit of reading on.

Thanks for all advice and suggestions

I am in the exact same boat, From everything I have read IB (Interactive Brokers) seems to be the way to go, the only downside is even if you dont trade the whole month you still get charged $10, so its more for the active trader, but the brokerage fees are far cheaper than commsec, and correct me if I am wrong but there is no charge for stop/trailing loss.

 

[supermatt]

yes australian banks are an absolute joke and a disgrace to society with their absolute garbage brokerage fees. its like daylight murder. ill put a blame in there to the asx too for why they are so high.
and any gimmick discount broker doesnt help either as you can only buy a certain amount at a low price. and generally that amount is stuff all.

 

[hardstylez]

I am in the exact same boat, From everything I have read IB (Interactive Brokers) seems to be the way to go, the only downside is even if you dont trade the whole month you still get charged $10, so its more for the active trader, but the brokerage fees are far cheaper than commsec, and correct me if I am wrong but there is no charge for stop/trailing loss.

Wow that sounds like something for me to look into. I really am a beginner in trading so I really only look to trade with $500 which is the minimum to buy in. and the only way I see making even after all costs would be to invest long. But I don't really want to be invested in to long.

 

[Steve C]

Wow that sounds like something for me to look into. I really am a beginner in trading so I really only look to trade with $500 which is the minimum to buy in. and the only way I see making even after all costs would be to invest long. But I don't really want to be invested in to long.

Good luck - I would probably try and save a little bit more ($1500 is what I am starting with) as that way you dont need such a high profit margin to cover the brokerage.

 

[Testpilot]

Hey guys don't want to spoil the party but starting to trade with $1500 is risky because you have to risk at minimum 1/3 of your trading account ($500 parcels). Many traders aim to risk around 2%-5% of their account per trade (so if the trade is bad and makes a loss it's no big deal). This means you should have around 10k to start with (500/0.05). That's just my 2 cents, i know people have been successful from small starts but I just want to point out that just because Buffet or Livermore hit it big that you will too.

That said I've always seen Comsec as aimed at buy and hold style mum and dad investors who perceive the Comm Bank as secure, trustworthy etc and aren't likely to want things like advanced order types etc.

 

[hardstylez]

Hey guys don't want to spoil the party but starting to trade with $1500 is risky because you have to risk at minimum 1/3 of your trading account ($500 parcels). Many traders aim to risk around 2%-5% of their account per trade (so if the trade is bad and makes a loss it's no big deal). This means you should have around 10k to start with (500/0.05). That's just my 2 cents, i know people have been successful from small starts but I just want to point out that just because Buffet or Livermore hit it big that you will too.

That said I've always seen Comsec as aimed at buy and hold style mum and dad investors who perceive the Comm Bank as secure, trustworthy etc and aren't likely to want things like advanced order types etc.

I completely agree with you. I did join commsec out of pure ignorance and luckily I have not placed any trades through with them just yet (thanks to aussie stock forums and members for all the insight). I was enlightened to the fact that they are an extremely expensive broker to have. at the moment I do have a decent start up capital (saved up from all my long hours of working on my hands and knees as a student), but at this stage of my stock trading endeavour, I am very conservative at how I place my trades (fear is a huge factor for me at the moment). I am looking around for a decent Australian online broker at the moment. I have heard a lot of amazing things about IB and have looked at their site, but my concern flared up when I found out there was no Australian branch. perhaps this may not be a big issue, however, I would feel much more at ease if I were able to find an Australia online broker to trade through. so far I have found a tiny shortlist of Australian online brokers to read more into. But I definitely do plan to close my commsec account.

 

[nulla nulla]

If you are trading off a small capital base and looking for low broker charges on small trades you might look at HSBC. There was an article/advertisement in the Sydney Morning Herald Business Day section earlier this week. They are comming back to online broking after a 6 year hiatus. From memory (reading the piece) they are using the same basic version of the WebIress program used by IB (possibilites of upgrading to live feed etc).

 

[Steve C]

Hey guys don't want to spoil the party but starting to trade with $1500 is risky because you have to risk at minimum 1/3 of your trading account ($500 parcels). Many traders aim to risk around 2%-5% of their account per trade (so if the trade is bad and makes a loss it's no big deal). This means you should have around 10k to start with (500/0.05). That's just my 2 cents, i know people have been successful from small starts but I just want to point out that just because Buffet or Livermore hit it big that you will too.

That said I've always seen Comsec as aimed at buy and hold style mum and dad investors who perceive the Comm Bank as secure, trustworthy etc and aren't likely to want things like advanced order types etc.

Thanks Test pilot I had no idea of the above I have never heard of it before are you 100% sure? That is really disappointing feels like my short term dream is over (building a house at the moment so no way I will find a spare 10k)

 

[supermatt]

had a look at the hsbc trading section. looks like a carbon copy of bell direct with their layout and fee structures. they even want you to pay for live quotes for a basic member. ugh