Late settlement with Commsec

[awg]

It would be preferable if you are a Commsec client to settle using their CDIA linked account.

brokerage minimum is reduced from $30 to $20. Interest is cash market rate

I reckon anyone is asking for xtra complications trading and settling from different institutions, unless you have a very good reason.

 

[Sir Osisofliver]

Re: Trading with Commsec

Question 1: Has anyone ever settled later than required?
and

I remember in my dim past where one of my colleagues had a client go about 24 days without settling a transaction. He was drawing funds from his mortgage and had set up direct transfer to and from this mortgage account. The broker sold his shares (making a noice profit) and bought more shares a day later with the proceeds. The problem was that the sale proceeds cleared the mortgage and the bank in question automatically closed the mortgage facility and account and made the client sign new mortgage documents, pay application fees, original signatures and ID the whole nine yards. All the while the fail fees were racking up. Broker was literally two hours away from being fired when the funds came through from the bank.

Don't let your settlements go past T+3 - brokers don't like it and they can put you on the SMRS (Stockbrokers Mutual Reference Society) if you aren't careful. It's like a black book and some brokers won't deal with you if you are on there.

2. what were the penalties that had applied to you?

$54 a day is the standard charge for late settlement in the industry at this time.

3.does anyone know how long it'll take to transfer money from ANZ to commsec cash management account?
...would the money go in during the day or overnight?

You are effectively doing a intrabank transfer of funds (ANZ to CBA) it will depend upon when each institution communicates it's batch run through to the clearing house, generally this is an overnight process.

You can request (at a cost of between 20 and 30 dollars an RTGS - I can't remember what the Abbreviation means - which is a real time fund transfer which will ordinarily mean that the funds will be in the account in a couple of hours.

4.do they charge the fee per trade per day???

Yup

5.and when are the dishonour fees settled(when u've got enough money in ur account?)?

yup

6.do u need to inform them in any ways that theres enough money in ur account to settle or is the balance automatically adjusted once the money is available?

Most will take their pound of flesh as soon as possible

also what are the side effects of late settlement as in
6. i was told that in the worst senario, the account will be suspended....when does that happen????

I don't know - I would imagine it would be up to the broker. You could check the website or your Terms and Conditions to find out if they have an established policy.

i guess thats all for now
thanks again

Cheers

Sir O

 

[nulla nulla]

Tempting fate can be thrilling or disastrous. If you plan on a long term relationship with your broker, it would pay to know the rules in advance and the penalties if you deviate from the approved path. Asking after the event, is like jumping out of the plane then asking "where's the parachute". Good luck with the landing.

 

[b.j.]

Re: Trading with Commsec

To Sir O,
I didnt follow up with this thread since i've settled my mess...
but thank you for the information!!! they are all accurate
except that i did tell comsec that i was a new customer
and my money had gone in the right time
so i only had to pay dishonour fee for one day
and then its refunded....

nulla nulla,
it wasnt all that bad
i actually ended up with a profit, which i was quite happy with..
considering its my 1st time trading
but i've learned my lesson!!!so yea ...will never do it again

 

[So_Cynical]

I almost made a blunder this week...i brought CSL on Monday and totally forgot to
transfer the funds outa my high interest Commsec account into my Commsec trading
account...anyway miraculously remembered on Thursday lunch time and in a panic logged
on from work and did the transfer at about 12.30

When i got home, noticed that Commsec took the money at 1 pm....so i cant help but think
they were doing me a favour.

When is the T + 3 cut off?

 

[beamstas]

I almost made a blunder this week...i brought CSL on Monday and totally forgot to
transfer the funds outa my high interest Commsec account into my Commsec trading
account...anyway miraculously remembered on Thursday lunch time and in a panic logged
on from work and did the transfer at about 12.30

When i got home, noticed that Commsec took the money at 1 pm....so i cant help but think
they were doing me a favour.

When is the T + 3 cut off?

Tuesday would be 1 day
Wednesday 2 days
Thursday 3 days

Sorry to hear that you bought CSL

 

[Julia]

Sorry to hear that you bought CSL

With apologies for diversion from the topic, I, too, am interested in your buying CSL, So Cynical.
Could you let us in on the reason why? Maybe the vaccine which they should have on the market in three or so months for the dreaded pig flu?

It's been trading below the MA and looking pretty unattractive recently.
Good luck with it.

 

[craigj]

commsec are not consistent when T+3 is settled

i have found many times it is on the fourth trading day and when the website was having problems around march sometimes the fifth day

 

[So_Cynical]

Sorry to hear that you bought CSL

I'm a little sorry too....clearly missed the better entry (today)
well any day after Monday ...Doh

But u have to understand that this is on the back of missing out on
buying into AWB and CIF at there lows last week....missed both of them
the day after (i have a day job)

So i just jumped into CSL when it broke the 31.00 mark (close)

With apologies for diversion from the topic, I, too, am interested in your buying CSL, So Cynical.
Could you let us in on the reason why? Maybe the vaccine which they should have on the market in three or so months for the dreaded pig flu?

It's been trading below the MA and looking pretty unattractive recently.
Good luck with it.

CSL is a stock that i don't know much about..just know that the SP dropped into
an attractive zone so...backed my chart judgment, and low balled it, and got executed.

Have to admit i got a bit emotional over missing out on AWB and CIF earlier in the
week and just backed my judgment...and somewhat regret it now.

LOL....it was like i have X = K and had to buy something good.

 

[jono1887]

Re: Trading with Commsec

To Sir O,
I didnt follow up with this thread since i've settled my mess...
but thank you for the information!!! they are all accurate
except that i did tell comsec that i was a new customer
and my money had gone in the right time
so i only had to pay dishonour fee for one day
and then its refunded....

nulla nulla,
it wasnt all that bad
i actually ended up with a profit, which i was quite happy with..
considering its my 1st time trading
but i've learned my lesson!!!so yea ...will never do it again

i was late a day back in november... near when i opened my account. you reckon its too late to ask to get the fee waived :