Commsec Q&A

[dicko15]

hi guys,

which account should I apply for as a first time investor?
the three options are
- trade with CDIA account
-trade with my own account
-or trade with borrowed funds(don't really wanna do this one)

I firstly wanted to get the CDIA but while reading about it there is 0% interest on funds below 10k and im not looking at investing that much to start with.

thought??

cheers!

 

[tinhat]

hi guys,

which account should I apply for as a first time investor?
the three options are
- trade with CDIA account
-trade with my own account
-or trade with borrowed funds(don't really wanna do this one)

I firstly wanted to get the CDIA but while reading about it there is 0% interest on funds below 10k and im not looking at investing that much to start with.

thought??

cheers!

From memory, you need to have the CDIA account and nominate it for all settlements in order to qualify for the "internet preferred" brokerage rate of min $19.95. The good news is that you don't have to have the money in the account to cover a buy order at the time you enter the buy order. You just need to make sure the money is in the account for settlement which is the trade date plus three days.

 

[Bill M]

dicko, as you know from my previous post I'm with Commsec. I use a CDIA and the only reason I have that linked to my account is for the cheaper brokerage rates. The trick is that I don't leave any money in it. If I sell stocks the funds go into my CDIA and as soon as it gets in there I transfer it out into another account I have where I get 4% for cash.

I don't use borrowed funds for my investments so I can't comment on that.

 

[sasch]

hi guys,

which account should I apply for as a first time investor?
the three options are
- trade with CDIA account
-trade with my own account
-or trade with borrowed funds(don't really wanna do this one)

I firstly wanted to get the CDIA but while reading about it there is 0% interest on funds below 10k and im not looking at investing that much to start with.

thought??

cheers!

Hi Dicko,

Have you considered a NAB Trade account? It is slightly more competitive at the moment with a 3.3% interest rate and and $14.95 trades. That way you can avoid the Commsec money shuffle or at least reduce it. Every percentage point helps when your starting out.

Note - I do not work for NAB .