Why 2023 might be a great time for you to switch trading platforms
Not sure if your current trading platform is meeting your needs? We take a look at why you might want to make the change.
With the end of the financial year approaching, it's time to take stock and evaluate whether your current financial tools are serving your needs effectively.
Your trading platform is no exception – so today, we take a look at some of the reasons it might be time to make a switch.
1. Portfolio consolidation
It's not unusual for long-term investors to have a few different trading accounts or platforms. Trading different markets, reaching different industries or even balancing broker fees are all reasons for maintaining several accounts.
But it is important to reassess them periodically and consider whether consolidating your accounts may be an effective strategy.
Having a single – or at least more streamlined – view of your investments can enable you to get a clearer picture of whether your investment plan is tracking effectively.
There can also be financial incentives for consolidating, too. For example, CMC Invest is currently offering $100 cashback when you transfer international stocks across to its trading platform.
2. Access to additional markets
Making the switch to a new trading platform can be a great opportunity for expanding your investment horizons.
Trading platforms all have distinct offerings – covering different industries and territories – so if you've been thinking about branching into a new area, a new trading platform can help enable that.
To point to one example, CMC Invest currently offers access to 15 different markets around the world.
For 4 of these territories – UK, US, Japan and Canada – CMC Invest also charges $0 brokerage, and has no holding limit. All you'll pay is a small FX buffer.
This means that it's easier to dip your toe as an investor and get a feel for these markets, rather than needing to trade large amounts to rationalise large brokerage fees.
Start trading with CMC Invest
Until November 30 2023, you'll receive $100 cashback when you transfer your existing international stocks over to CMC Invest.
🌏 Access to 16 different markets around the world
Gain access to a wide range of markets worldwide through CMC Invest, allowing you to diversify your portfolio and access new industries without having to hold different currencies.
🕒 Extended trading hours
With CMC Invest, there's no more need to stick solely to the 10am-4pm of the ASX. Trade at your convenience with access to other markets and extended trading hours.
💲$0 brokerage on select stocks
When you trade on the CMC Invest platform, there's $0 brokerage on Aussie shares up to $1000, as well as $0 brokerage on US, UK, Canada and Japan shares.
3. Cost savings
You've got to spend money to make money – and rarely is this so true as in trading!
As an investor, you've got to balance expenses like account fees, transaction fees, inactivity fees and capital gains tax, just to name a few.
Switching platforms – or consolidating them – can sometimes be an effective way to save on these costs. You can save on brokerage fees, foreign exchange fees and inactivity fees by switching to a cheaper broker. In fact, Finder research actually shows the average Australian investor can save over $700 in brokerage fees by switching to a cheaper broker.
Of course, it's important to assess your situation individually. Different platforms charge an array of differing fees, depending on different factors – so sometimes you may be better off keeping multiple accounts.
However, you should always check the maths – sometimes you might be pleasantly surprised by what you can save.
4. Better features and services
A key reason to make a switch to a new platform is to access better features and services from the trading platform provider.
Perhaps your current one isn't offering the depth of resources that you require, or your needs as a trader have evolved since you first signed up.
CMC Invest offers a range of integrated research materials and business reports to its traders. For example, you're able to receive Morningstar financial company details and reports both via desktop and the mobile app.
Traders also have access to customer support whenever a market is open.
So before you make a switch, make sure you investigate what type of features a prospective new provider offers.
5. Avoiding an asset sell-off
Trading platforms can undergo significant changes during their lifespans. The platform you signed up for some years ago isn't necessarily the "same" one that you're using today.
One of the most drastic changes that can occur is if your platform exits a particular market. Though this doesn't happen very often, it can potentially cause issues with your portfolio.
Upon exiting, some platforms will attempt to get you to sell the associated assets, which isn't always viable or desirable.
So by looking for a platform that offers a broad range of markets – and preferably, offers incentives for transfers – you'll be able to insulate your portfolio from future shifts, too.
Sign up for CMC Invest