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When it comes to Australian online share trading, both nabtrade and CommSec are market leading brokers. We know how difficult it can be to find Australian brokers who offer affordable and convenient ways to trade international shares, so we've published this guide to help you find the account that works best for you.
Keep reading and you'll discover that we've compared the account features of both nabtrade and CommSec. If you want more specific details on either account, you can always click through to the our individual broker review pages.
Standard brokerage - US shares
Get $0 brokerage on US stocks with trades as little as $50 when you join the world's biggest social trading network.
Important: Share trading carries risk of capital loss.
Say you want to buy Apple Inc shares with either nabtrade or CommSec to the value of $1,100, the fees for the trade would be as shown in the table below:
nabtrade | CommSec | |
---|---|---|
Apple share price | USD$220 | USD$220 |
Total cost of share parcel (5 shares) | USD$1,100 | USD$1,100 |
Brokerage fee | AUD$14.95 | USD$19.95 |
Foreign currency conversion fee | AUD$7.15 (0.65% of trade value*) | USD$6.60 (0.6% of trade value) |
Total fees | AUD$22.10 (approx US$14.90) | USD$26.55 |
*Nabtrade expresses its foreign currency conversion fee as a spread ranging from 0.50% to 0.80% of trade value.
In dollar terms, this ranges from AUD$4.97 to AUD$7.94 in the above case study. The actual amount charged to your nabtrade account depends on the time of the transaction.
Rates accurate at 8 October 2019.
As you can see, the comparison is far from straightforward due to a couple of key factors. The first cost that needs to be considered is the brokerage fee - CommSec’s fee is the higher of the two and is also charged in US Dollars instead of Australian Dollars.
However, nabtrade also charges a foreign exchange conversion fee of between 0.50% and 0.80% of the transaction value. So not only will the cost of your transaction vary depending on the percentage amount of the fee, but it will also depend on the value of your transaction and the exchange rate market at the time.
Taking current exchange rates into account at the time of writing, in the above example nabtrade offers the most cost-effective solution. However, as you will see in the case study below, that may not always be the case with larger transactions.
Say you want to buy $5,000 worth of Pfizer shares on the NYSE, the brokerage fees for CommSec and nabtrade are shown in the table below:
nabtrade | CommSec | |
---|---|---|
Pfizer share price | USD$36.78 | USD$36.78 |
Total cost of share parcel (136 shares) | USD$5002.08 | USD$5002.08 |
Brokerage fee | AUD$19.95 | USD$29.95 |
Foreign currency conversion fee | AUD$32.50 (0.65% of trade value*) | $USD30.01 (0.6% of trade value) |
Total fees | AUD$39 (USD$29.38) | USD$29.95 |
In this example, CommSec brokerage fee is now just above nabtrades. This is what has impacted the broker fees:
So if you're wondering whether nabtrade or CommSec is the more affordable option when you need to trade shares on a US stock exchange, the answer is that it depends on the size of your transaction. For smaller trades, nabtrade will usually be the more cost-effective option, but if you need to place a large trade then CommSec will probably come out on top, although this also depends on which global exchange the stocks are listed.
Both nabtrade and CommSec charge a foreign exchange conversion fee. This is sometimes called the FX fee, conversion rate, foreign exchange rate or FX spread. Regardless, it's the fee you're charged to convert Australian dollars into foreign currency.
Whenever you execute an international share trade with nabtrade, a foreign exchange transaction occurs - i.e, you need to convert the Australian Dollars in your trading account into US Dollars in order to buy shares on a US stock exchange. nabtrade charges an FX spread of between 0.50% to 0.80% of the value of your trade depending on the time of trade.
Meanwhile, CommSec charges a flat FX fee of 0.6% per trade, regardless of currency exchange required or time of trade.
It's worth pointing out that the brokerage fees charged by nabtrade and CommSec vary depending on the size of your international trade. This can obviously have a huge bearing on the total cost of your transaction, so it's worth examining the tiered fee structure of each provider when comparing nabtrade vs CommSec.
All figures in AUD
Trade type | Transaction size | Brokerage |
---|---|---|
Online trading (all global markets) | Up to and including $5,000 | $14.95 |
$5,000.01 - $20,000 | $19.95 | |
Over $20,000 | 0.11% of trade value | |
Over the phone | All | $59.95 or 0.55% of trade value (whichever is greater) |
All figures in USD
Market | Brokerage fee |
---|---|
USA | $19.95 for trades up to $5,000$29.95 for trades up to $10,0000.31% of transaction value for trades above $10,000 |
Canada | $65 or 0.75% of transaction value (whichever is greater) + 0.15% execution fee |
Asia Pacific | $39.95 or 0.40% of transaction value (whichever is greater) |
Europe and Middle East | $39.95 or 0.40% of transaction value (whichever is greater) |
Although the fees that apply to international share trading are undoubtedly an important factor when comparing share trading platforms, there are several other features to consider before you choose a platform. These include:
If neither CommSec or nabtrade look right for you, why not compare some of the other brokers in the table below or head to our international share trading page to find out more.
Important: Share trading can be financially risky and the value of your investment can go down as well as up. “Standard brokerage” fee is the cost to trade $1,000 or less of ASX-listed shares and ETFs without any qualifications or special eligibility. If ASX shares aren’t available, the fee shown is for US shares. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
We rate the fees and features of both online brokers.
The broker is offering US shares for a flat $9.50 fee. So how does it stack up to CommSec or CMC Markets?
Dabble offers $0 brokerage on US stocks plus automated investments from as little as $1.
Trade ASX shares and ETFs with commissions starting at $8.
Trade ASX stocks and ETFs with a flat $5 brokerage fee and a low minimum investment of just $100.
Winner, finalists and methodology for Finder Awards 2020 Best Australian Share Trading Account.
Winner, finalists and methodology for Finder Awards 2020 Best Share Trading Platform (Active Traders).
Winner, finalists and methodology for Finder Awards 2020 Best International Share Trading Account.
Winner, finalists and methodology for Finder Awards 2020 Best Share Trading Platform (Beginners).
Winner, finalists and methodology for Finder Awards 2020 Best Share Trading Platform (US stocks).
Hi There
Keen to progressively invest in global equities, not trade.
I see live market depth is available. Any charge for this?
Are the fees for conditional orders only charged on execution?
What is your minimum investment transaction?
Many Thanks, Alan
Hi Alan,
Thanks for your question.
Just to confirm, we are a comparison website and provide general advice only. Which broker are you referring to? If you would like to find out more, the following pages may help: CommSec and nabtrade
Regards
Clarizza