CommSec offers $0 brokerage but there’s a catch
Australia's largest trading platform is now offering $0 brokerage for new customers.
CommSec has announced it's joining a host of other low-cost brokers. It's dropping its fees for new customers while its competition is lifting theirs.
From today, the Big Four bank's trading platform offers $0 brokerage to new customers for their first 10 trades.
Each of these trades needs to be made by 31 July 2023 and cannot exceed $50,000 per trade to be eligible for the $0 brokerage.
Following the first 10 trades or after 31 July 2023, customers will go back to paying CommSec's usual fees.
The fees are $10 per trade of under $1,000 on CHESS-sponsored Australian shares and $19.95 for anyone who wants to buy more than $1,000 worth of shares. International fees and brokerage also apply if you're looking to invest outside of Australia with CommSec.
CommSec lowers rates as others lift theirs
CommSec's announcement that it's offering $0 brokerage on the first 10 trades comes as key rivals announce price hikes.
In the last 2 weeks, low-cost brokers Stake and Sharesies both came out with changes to their fee structure.
Stake, whose claim to fame was $0 brokerage, will charge $3 per trade for both its US and Australian shares.
Sharesies' new fee structure means you'll pay a transaction fee of 1.9% on the amount you invested, up to a capped amount of $6 per Australian order.
How does CommSec's deal stack up?
CommSec's product offering depends on how you want to use the service.
If you're a long-term investor looking to dollar-cost average into the market then 10 free trades in 6 months could be pretty advantageous.
But if you're trading on any sort of volume, this offer won't appeal to you.
While you'll get the $0 brokerage on the first 10 trades, from then on you'll have to pay CommSec's usual fees which are higher than a lot of its competition.
You should also look out for CommSec's fees after 31 July.
Remember this is only a special one-off deal. The $0 brokerage won't last and you will be charged a minimum of $5 per trade after 31 July.
Other Australian brokers that offer $0 brokerage
While CommSec's new offering appeals to some retail investors, it's not alone in offering $0 brokerage.
Here is a host of other names that have already offered $0 brokerage:
- eToro – Non-AU only
- CMC – US/global only + ASX stocks up to $1,000
- IG – Non-AU only
- Syfe – First 2 trades only on US stocks
- Webull – US only
- Superhero – US only
- Stake – Until 3 March
Looking for a low-cost online broker to invest in the stock market? Compare share trading platforms to start investing in stocks and ETFs.
