Esuperfund SMSF brokers

[Pager]

Posted this on the Chartist site as well, but for any esuper clients who may not be aware or those looking to run a SMSF.

Things have changed and not only can esuperfund clients use IB now but they can also trade futures.

http://www.esuperfund.com.au/investments/allowed_copy1.aspx

ESUPERFUND clients can invest in Futures through our Optional Brokers namely Halifax Brokers or Interactive Brokers.

IB Rates are a little higher than there atandard rates but still very low, the Spi for example is usually $5 per side but using esuperfund its $7.

http://www.esuperfund.com.au/shares/OptionalBrokers/IBBrokers/Brokerage.aspx

 

[aarbee]

Thanks for posting this.
I would have thought that ESuperfund would have emailed this kind of info to their clients.
I was about to shift away from ES in order to be able to trade with Interactive Brokers.
Will open an IB account for the SMSF straightaway.
Thanks again.

Cheers

 

[dclayw]

Some of esuperfund documentation says FX can only be traded via CFDs through CMC Markets.

Now that IB is onboard I assume trading spot FX is allowed? The brokerage is listed at 0.4 pips but it doesn't say anything about trade size.

Anyone trading spot FX through esuperfund?

 

[moliver]

I joined esuperfund in november last year. I received my first financial reports and had some queries like relating to the member statements and financial statements.

Rather than helping me to understand, or better still explain how they come to these weird numbers (like a fund worth $102765 + a tax refund of $137 somehow equates to a member benefit of $101,563), they refused to help and suggested I go to an accountant for information.

They seem to forget that they are providing a service for Self Managed funds and think that everyone needs or should have expert financial knowledge. What do they expect when they get into a market aimed at inexperienced managers.

I f I have to go to an accountant to have the financial statements explained to me, then what is the point of using these people?

If you don't have any need for their help, they might be ok, but if you are a complete novice when it comes to financials, I suggest (highly recommend) that you stay well clear of this mob.

 

[CAFA1234]

I joined esuperfund in november last year. I received my first financial reports and had some queries like relating to the member statements and financial statements.

Rather than helping me to understand, or better still explain how they come to these weird numbers (like a fund worth $102765 + a tax refund of $137 somehow equates to a member benefit of $101,563), they refused to help and suggested I go to an accountant for information.

They seem to forget that they are providing a service for Self Managed funds and think that everyone needs or should have expert financial knowledge. What do they expect when they get into a market aimed at inexperienced managers.

I f I have to go to an accountant to have the financial statements explained to me, then what is the point of using these people?

If you don't have any need for their help, they might be ok, but if you are a complete novice when it comes to financials, I suggest (highly recommend) that you stay well clear of this mob.

Oh dear oh dear! OK so this is the deal ... you get your SMSF audited by a low cost provider (in fact the lowest in the industry as I see it), and now you have question about the accounting standard used and how various numbers are arrived at.

I feel for you - every time I get my company account from my accountant, or I look at the account for a public company EOY report, I start to get a headache. The fact is if you want an explanation then you have a few options,

1. do your own research and educate yourself in Aussie accounting standards,
2. pay your accountant to sit with you and try and explain, although there will be a good chance you don't get it,
3. call a friend and get some free help,
4. change providers for next year (costly experience my friend) or
5. just accept the numbers are correct.

ESuper are not going to get involved with your, and 99% of people) lack of expert knowledge for the standards - they would never get any work done. And nor would any other provider unless they were charging thousands per year to cover the ad hoc advice client want.

If you want to screen copy the page with these numbers and post them I'm sure we can offer guidance.

Cheers

 

[sydboy007]

I joined esuperfund in november last year. I received my first financial reports and had some queries like relating to the member statements and financial statements.

Rather than helping me to understand, or better still explain how they come to these weird numbers (like a fund worth $102765 + a tax refund of $137 somehow equates to a member benefit of $101,563), they refused to help and suggested I go to an accountant for information.

They seem to forget that they are providing a service for Self Managed funds and think that everyone needs or should have expert financial knowledge. What do they expect when they get into a market aimed at inexperienced managers.

I f I have to go to an accountant to have the financial statements explained to me, then what is the point of using these people?

If you don't have any need for their help, they might be ok, but if you are a complete novice when it comes to financials, I suggest (highly recommend) that you stay well clear of this mob.

When I was in industry funds the member benefit was always lower than the balance due to whatever fees were to be charged to pay the benefit.

You've gone for the tiger airlines of the SMSF administration companies.

I've kept a spreadsheet to tally up where I should be. I have an estimate of what my tax bill will be for last FY. As long as esuperfund come in fairly closely to that I'll be happy.

At the end of the day they're doing an audit and as long as the ATO are happy with it then I'm not going to be too worried about the exact figures. I just want a complying super fund and when you compare esuperfunds pricing to pretty much the rest of the market you quickly realise why you picked them.

 

[moliver]

When I was in industry funds the member benefit was always lower than the balance due to whatever fees were to be charged to pay the benefit.

You've gone for the tiger airlines of the SMSF administration companies.

I've kept a spreadsheet to tally up where I should be. I have an estimate of what my tax bill will be for last FY. As long as esuperfund come in fairly closely to that I'll be happy.

At the end of the day they're doing an audit and as long as the ATO are happy with it then I'm not going to be too worried about the exact figures. I just want a complying super fund and when you compare esuperfunds pricing to pretty much the rest of the market you quickly realise why you picked them.

It wasn't that I didn't trust their figures. I just wanted to know, in simple terms, how they got to some of the figures.

I had a perception of what the tax rate was for super funds (15%) and it looked like the tax was higher according to the member statements, and that was what was causing me some concern.

Good news is they did eventually provide some information which cleared things up for me.

I realise they are the "Tiger Airlines" of SMSF providers, but do think they need to consider who uses their services and what their level of experience or knowledge might be. It is my first time with SMSF and any financial reporting - I just don't know what I don't know!

As a Trustee, I have to satisfy myself all documents and accounts are ok. If there is something that I don't understand, surely it's ok for me to ask questions?

So, now my issues with the reports have been cleared up, I can thoroughly recommend eSuperfund. It is easy to setup, simple to operate and cost effective. And their support is generally very good.

 

[moliver]

Oh dear oh dear! OK so this is the deal ... you get your SMSF audited by a low cost provider (in fact the lowest in the industry as I see it), and now you have question about the accounting standard used and how various numbers are arrived at.

I feel for you - every time I get my company account from my accountant, or I look at the account for a public company EOY report, I start to get a headache. The fact is if you want an explanation then you have a few options,

1. do your own research and educate yourself in Aussie accounting standards,
2. pay your accountant to sit with you and try and explain, although there will be a good chance you don't get it,
3. call a friend and get some free help,
4. change providers for next year (costly experience my friend) or
5. just accept the numbers are correct.

ESuper are not going to get involved with your, and 99% of people) lack of expert knowledge for the standards - they would never get any work done. And nor would any other provider unless they were charging thousands per year to cover the ad hoc advice client want.

If you want to screen copy the page with these numbers and post them I'm sure we can offer guidance.

Cheers

Good news! eSuperfund did eventually provide me with some information, so I can go back to recommending them again.

Now that I know what I don't know with respect to Financial reporting and self managed super funds, I can do as you suggest and educate myself. I will also be doing what you suggest and just accept the numbers, without question - just as a good Trustee should!

 

[Bill M]

To present members of Esuperfund

I am thinking of joining Esuperfund and I have read this thread but a lot of comments date back to 2007 when the thread was first started.

I will get straight to the point. I kindly ask if present members could give their evaluation of Esuperfund. I know a lot of you are busy so even if you write "very happy" or "it's ok" or "waste of time" or something similar I would like to hear from you.

I am looking at opening a ANZ V2 account with an ebroking account. Are any of you using these two and are you happy with the service from them? Did you encounter any taxation or compliance issues or is it as they say on their site "ESUPERFUND attends to ALL the above annual compliance requirements for your SMSF."?

Is there anything negative or positive that may be delighting or annoying you?

How easy was it to shift your industry fund over to Esuperfund? Any delays from your old fund?

Just a bit of background, I am an experienced investor but most of my assets are outside of super. I am looking to manage the same kind of portfolio inside super.

Any opinions would be greatly appreciated. I would rather know now than run into problems later. Thanks for your time.

 

[coolcup]

Re: To present members of Esuperfund

I am thinking of joining Esuperfund and I have read this thread but a lot of comments date back to 2007 when the thread was first started.

I will get straight to the point. I kindly ask if present members could give their evaluation of Esuperfund. I know a lot of you are busy so even if you write "very happy" or "it's ok" or "waste of time" or something similar I would like to hear from you.

I am looking at opening a ANZ V2 account with an ebroking account. Are any of you using these two and are you happy with the service from them? Did you encounter any taxation or compliance issues or is it as they say on their site "ESUPERFUND attends to ALL the above annual compliance requirements for your SMSF."?

Is there anything negative or positive that may be delighting or annoying you?

How easy was it to shift your industry fund over to Esuperfund? Any delays from your old fund?

Just a bit of background, I am an experienced investor but most of my assets are outside of super. I am looking to manage the same kind of portfolio inside super.

Any opinions would be greatly appreciated. I would rather know now than run into problems later. Thanks for your time.

Hi mate

I moved over to Esuperfund about 2 years ago and they have been great. There are some aspects of their service which are a bit limiting (eg you have to run all transactions through your V2 Plus account and you are forced to use a limited choice of brokers) but these were not a deal killer for me by any means. All in all I have not found it limiting for what I want to invest my super in (mainly shares, managed funds and term deposits / online savings accounts).

Their annual audit process is all done online, they automate a lot of it but ask for a few scanned copies of dividend statements / account balances for accounts they don't have automated. All in all fairly easy if you keep your statements in a file throughout the year. Last year I took the time to ask them several questions as part of the annual audit and their answers were thorough and well detailed with full workups provided when I asked them.

All in all I am very satisfied with their platform and their service. I was expecting them to be more of a pain than they really are given their low fees.

Any specific questions, let me know.

 

[Bill M]

Re: To present members of Esuperfund

All in all I am very satisfied with their platform and their service. I was expecting them to be more of a pain than they really are given their low fees.

Any specific questions, let me know.

Thank you coolcup, really appreciate that. What about their fees, is it as they say $699 per annum plus $249 for the ATO? Was there any extras?

One more question, which beneficiary route did you go? A Binding Beneficiary or a Reversionary Beneficiary and what was the reason for choosing what you chose if you don't mind me asking you that?

Thanks.

 

[merlinnn]

I am with esuper and looking to change shortly to another provider, purely for the amount of brokerage I have to pay with commsec. Its basically $60.00 a round trip (as in buy and sell) and $18.00 if I use IB, but this gives me no CHESS protection on Aussie shares. Unfortunately for me I am down about $1500 in brokerage with not even 12 months of trading under my belt, hence the reason to move as the $699 fee doesn't help me.


Apart from that they are very easy to deal with and the online filing of last years tax return was very straight forward.

 

[Bill M]

Thanks merlinnn. What about changing to the other broker they use, ebroking? They only charge $20 in and out for parcels 10K and under and they do CHESS as well? Or are you doing bigger parcels? I pay those amounts to brokers now outside of super, it's about market rate and I have 3 different brokers.

They other thing is, can another SMSF service do it cheaper? I can't find one but if you do can you let me know about it? Thank you.

 

[Pager]

Hi Bill

I set up with Esuper about 3 years ago, set up was pretty easy and free and so far its been very easy and straightforward, having to use the ANZ V2 account and ebroking or comsec for shares is not issue for me, ANZ you get a slightly higher rate on cash your waiting to invest and ebroking has low brokerage, you have access to very competitive term deposits and can use FIIG who are a fixed interest specialist and buy any managed funds you wish, if you use Investsmart you get some of the trailing commissions rebated, you can buy property although there are additional fees and requirements and as I haven’t or do I intend to so have not gone into it too much but can see there is options for those who want to, so really just about everything is covered.

Last year I paid the $699 fee and another ATO fee but it wasn’t much, then there was an additional one off fee to adjust the trust deed document but I think all funds had to do that due to some regulatory changes by the government; mind you it was only about $100, but other than that no surprises, any accountant its going to be double that I reckon at least mind you there is no advice but if your experienced at investing and prepared to do all your own research its well worth it, anything major though Esuper will let you know and as with the regulatory change last year get it all sorted out.

All the reporting could not be easier in fact people I know who run through there accountants and pay a lot more seem to have more hassle, but as esuper have your V2 and ebroking accounts access when they send your electronic check documents its more or less all prepopulated and you just have to verify the transactions and credits, all I had to do additionally was send in dividend statements and that was about it.

Overall I can highly recommend them and not sure why those who say the limited choices and not being able to use other brokers or accounts is an issue as the ones they use are amongst the most competitive? (merlinnn, why not just use ebroking rather than comsec? platform is easy to use and brokerage starts at $20).

IMHO, I can’t think of any reason why not to use esuper or anyone similar to them unless you’re a complete novice.

Good Luck

 

[Bill M]

IMHO, I can’t think of any reason why not to use esuper or anyone similar to them unless you’re a complete novice.

Good Luck

Thanks Pager, just what I was looking for. You have put to rest any doubts I may have had, excellent report. Cheers mate.

 

[rcm617]

Joined them about 3 years ago after thinking about SMSF for a couple of years, wish I had done so a few years earlier, I think my super balance would be a lot healthier.
I basically only invest in direct shares in super and a bit of cash when I cant see to many opportunities in the market. Converted to a TTR pension last year, all seamlessly and at no extra cost.
I have no problems with the lack of choice of accounts, not a frequent trader, so the slight difference in brokerage on 20 or so transactions a year will not add up to much.
All in all for the cost of the service, I have found them to be a remarkably good service, albeit with not much advice, though I find their website very handy for any information I need. Would recommend them.

 

[Bill M]

Thanks rcm617, really appreciated your report.

 

[merlinnn]

Thanks merlinnn. What about changing to the other broker they use, ebroking? They only charge $20 in and out for parcels 10K and under and they do CHESS as well? Or are you doing bigger parcels? I pay those amounts to brokers now outside of super, it's about market rate and I have 3 different brokers.

They other thing is, can another SMSF service do it cheaper? I can't find one but if you do can you let me know about it? Thank you.

I am only trading parcels under 10k at the moment but foresee myself conducting well over 100 trades throughout the year, there fore any cost cutting on brokerage is a bonus at the moment.

Overall I can highly recommend them and not sure why those who say the limited choices and not being able to use other brokers or accounts is an issue as the ones they use are amongst the most competitive? (merlinnn, why not just use ebroking rather than comsec? platform is easy to use and brokerage starts at $20).


IMHO, I can’t think of any reason why not to use esuper or anyone similar to them unless you’re a complete novice.

Good Luck

I'm still debating whether to use CMC markets or stick with IB for everything, my only logic was risk management as in having 50/50 Australian/ US brokerage accounts. Still not sure on that one.

Either way if you have a low amount of transactions and are not relying on advice, great company to deal with.

 

[sydboy007]

Thanks merlinnn. What about changing to the other broker they use, ebroking? They only charge $20 in and out for parcels 10K and under and they do CHESS as well? Or are you doing bigger parcels? I pay those amounts to brokers now outside of super, it's about market rate and I have 3 different brokers.

They other thing is, can another SMSF service do it cheaper? I can't find one but if you do can you let me know about it? Thank you.

I'm with esuperfund and finding them quite good.

They now allow you to open an IB account for $8 trades, so if you do plan to make a lot of trades you can put most of your business through them.

You will still have to have a main brokerage account, but there's nothing forcing you to use it once you have an IB account set up as well.

I've just done my annual audit and tax return info and it was pretty painless. It does help if you have a scanner, though you can fax / post copies to them as well. I find it easier to just scan all the dividend advices and annual tax statements into my google drive then they were all ready to insert as links when I emailed them all the information they requested. Makes looking for info easier too since it's now all online.

Free first audit and ongoing fee of just $699 I'm happy to let them handle the boring compliance while I can have some fun and focus on investing. Even with around half of my fund in fixed interest I'm up around 20% since last December when I opened my account. I like being able to have a "balanced" fund where I can earn a decent yield on my cash and fixed interest and use ETFs to gain cheap access to international shares. I'm saving at least $500 a year in fees now, and since it's a fixed fee structure that will only increase as the years go by.

 

[Bill M]

Either way if you have a low amount of transactions and are not relying on advice, great company to deal with.

Thanks merlinnn, sounds good to me as I am a low transaction account holder.

I've just done my annual audit and tax return info and it was pretty painless. It does help if you have a scanner, though you can fax / post copies to them as well. I find it easier to just scan all the dividend advices and annual tax statements into my google drive then they were all ready to insert as links when I emailed them all the information they requested. Makes looking for info easier too since it's now all online.

Free first audit and ongoing fee of just $699 I'm happy to let them handle the boring compliance while I can have some fun and focus on investing. Even with around half of my fund in fixed interest I'm up around 20% since last December when I opened my account. I like being able to have a "balanced" fund where I can earn a decent yield on my cash and fixed interest and use ETFs to gain cheap access to international shares. I'm saving at least $500 a year in fees now, and since it's a fixed fee structure that will only increase as the years go by.

Hi sydboy thanks for the report. I also have electronic advice by email for all my dividends/distributions through Computershare and Linkmarket services. I can download the PDF's from their site and send those to Esperfund. I have a scanner so anything else can be scanned to them also.

One of my main reasons for wanting to open this account is what you have said "decent yields on cash and fixed interest". The major super funds returns for cash are very low, for the 13-14 tax year i doubt any will make 3% at most. Also a lot of bond funds are showing woeful returns right now, something around 1 to 1.5% for the first 5 Months of the financial year. I on the other hand have a private portfolio (my own picks) of hybrids, convertible notes and floating rate notes. By picking my own stocks my portfolio is showing far better results (between 5% and 10% depending on the stock). I am also getting 4.5% for cash, so if I can do it why can't those funds?

On another note, industry super funds keep on making claims of how they save you money by not having shareholders or parent companies to pay fees to but in the end their fees are very high and their performance is lower. A 200K pension account with an industry super fund in a balanced fund will cost you between $1,400 and $2,000 in fees. With lower performance taken into consideration, do they really think that is value?

Anyhow, looks like I have to do it myself. Esuperfund looks like the way I will go, thanks again.