CommSec CDIA review

Should you trade shares from CommSec’s CDIA or stick with your own cash account? We compare the difference.

Kylie Purcell's headshot

By

Kylie Purcell

Edited by

Joelle Grubb

Updated

Fact checked

If you've looked into opening a CommSec Share Trading Account, you may have come across the Commonwealth Direct Investment Account (CDIA).

We've taken a deep dive into what it is, pros and cons of the account and how it compares with our own cash account.

Our verdict

The CDIA is the preferred cash account for CommSec and can be used to settle trades with low brokerage and no ongoing fees.

In simple terms, it's a straightforward cash account that can be used to fund your CommSec trades without having to move your money in and out of a trading account.

If you're an existing CommSec share trading account holder, or looking to apply, you can open a CDIA account at no cost.

Even if you hold an account with another bank, transferring funds to CommSec CDIA for the purposes of trading is little effort and can save you a lot on brokerage fees.

If you prefer to keep funds sitting in another account, you'll just need to ensure you have enough cash in the CDIA should you want to have the freedom of placing trades at a moment's notice.

Also through CommSec, you can use CommBank's ATM network and the NetBank online banking system to access your CDIA account. You can also enjoy unlimited electronic transactions.

Good for

  • If you settle your share trades directly through your CommSec CDIA account, then you'll pay as little as $5.00 per trade as opposed to $29.95 per trade.
  • Balances are automatically recognised by CommSec so when you see a trading opportunity, you won't have to worry about transferring funds first.
  • CommSec offers a free dividend direction service for CDIA account holders, meaning that they'll be automatically paid into your account where you can start earning interest immediately.
  • There are no subscription or account keeping fees on the CDIA account.

Not so great for

  • One more bank account. While you have to fund your share trading somehow, if you're not already a member of the Commonwealth Bank, then an extra account is a hassle.
  • Interest rates aren't particularly competitive.

What is a CDIA account?

The Commonwealth Direct Investment Account (CDIA) is much like any other transaction account except that it’s designed to let you trade shares via CommSec.

In order to settle trades via an online share trading platform, you’re required to have a linked cash management account. You could use any transaction account for this purpose, but the CDIA gives you a few key benefits.

Here are its main functions:

  • Buy and sell shares. After transferring funds into the CDIA account, you can use it to trade shares and store any additional cash.
  • Transact. Like any other cash account, you can use the CDIA to make everyday transactions, and you can access your cash via an ATM through an optional Debit Mastercard.
Susannah Binsted's headshot

"I've had a CommSec CDIA account for around 7 years now and I use it to fund trades made in my CommSec Share Trading Account and CommSec Pocket account. It gives me a much lower brokerage fee than I'd get otherwise and it's easy to set up regular transfers to align with my regular investments. "

Susannah Binsted
Finder crew member

What are the benefits of using the CDIA?

Low trading fees. The main highlight of using the CDIA to trade shares through CommSec is the cheaper brokerage fees. If you buy shares using the CDIA account, you’re charged a brokerage fee of as little as $5.00, compared to $29.95.

Earn interest. In addition to cheaper shares, you'll be able to earn interest on cash in your account, though the rates aren't particularly competitive.

The rate you receive will increase based on the amount you have in your account, with the highest rate offered to accounts with $1,000,000 or more.

CDIA account balanceInterest earned
$1,000,000 or more2.7% p.a.
$250,000 - $999,9992.05% p.a.
$50,000 - $249,9991.5% p.a.
Less than $50,0000.75% p.a.

*Must be linked to a CommSec Share Trading Account

Online banking. If you already have a CommBank account, your Commsec CDIA account will appear in your main Internet banking window, making it easy to transact between accounts online.

Transaction account. The CDIA has an alternate function as an everyday transaction account, with the option of a debit Mastercard, making it all the more functional. Interest on cash in the account is calculated daily and paid monthly.

How do the fees differ

The biggest difference between using the CommSec CDIA account and another account is the brokerage fees. Here’s a breakdown of the brokerage fees that you can expect when using the CDIA versus using your own account.

Trade amountCDIA account broker feeNon-CDIA broker fee
Up to $1,000$5.00$29.95
$1,001 - $3,000$10.00$29.95
$3,001 - $10,000$19.95$29.95 (Up to $9,999.99)
$10,001 - $25,000$29.950.31%
from $25,0010.12%0.31%

What fees can you expect from a CommSec CDIA account?

There are no monthly fees for CDIA accounts linked to the CommSec Share Trading Account and there are unlimited fee-free electronic withdrawals.

This means that you have complete access to the cash in your trading account at all times, something that isn't always possible with brokers that use external bank accounts.

How do I open a CommSec CDIA cash management account?

Customers that already have a CommSec Share Trading Account can apply by logging in through the CommSec website and navigating to Products > Cash > Apply Now.

If you wish to apply for a CommSec Share Trading Account, you can apply for a CDIA during the application process.

To make sure you get accurate and helpful information, this guide has been edited by Joelle Grubb as part of our fact-checking process.
Kylie Purcell's headshot
Written by

Investments Analyst
Add to Preferred Sources

Kylie Purcell is an experienced investments analyst and finance journalist with over a decade of expertise in a wide range of financial products, including online trading platforms, robo-advisors, stocks, ETFs and cryptocurrencies. She is a sought-after commentator and regularly shares her insights on the AFR, Yahoo Finance, The Motley Fool, SBS and News.com.au. Kylie hosts the Investment Finder video series and actively contributes to the investment community as a judge and panellist. She holds a Master of Arts in International Journalism, a Graduate Diploma in Economics, and ASIC-recognised certifications in securities and managed investments. See full bio

Kylie's expertise
Kylie has written 166 Finder guides across topics including:
  • Investment strategies
  • Financial platforms
  • Stockbrokers
  • Robo advisors
  • Exchange traded funds (ETFs)
  • Ethical investing
  • ASX stocks
  • Stock and forex markets
More resources on Finder

Get rewarded $$ for switching with Finder Rewards

Find a better deal, save on your bills and get a free gift card. Sign up to be the first to hear about new Finder Rewards.

Ask a question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms Of Service and Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

13 Responses

    Will's avatar
    WillMarch 31, 2014

    What are the pros and cons of using a CDIA account as opposed to your own cash account?

      Marc Terrano's headshotFinder
      MarcApril 1, 2014Finder

      Hi Will,
      thanks for the question.

      There are a number of differences between these two options. As the Commsec website states, trading with your own cash account means trades start at $29.95, whereas trading with the CDIA has costs which start at $19.95. The CDIA also presents a streamlined option by allowing you to earn interest between investments on balances of over $10,000 without the requirement of transferring funds between the difference accounts you might have.

      I hope this helps,
      Marc.

      Marc Terrano's headshotFinder
      MarcApril 1, 2014Finder

      Hi Will,
      thanks for the question.

      There are a number of differences between these two options. As the Commsec website states, trading with your own cash account means trades start at $29.95, whereas trading with the CDIA has costs which start at $19.95. The CDIA also presents a streamlined option by allowing you to earn interest between investments on balances of over $10,000 without the requirement of transferring funds between the difference accounts you might have.

More guides on Finder

Go to site