CommSec Account

Hey guys.
I've been considering setting up a CommSec account recently. I started filling in the online application the other day, but I don't have an account with commonwealth.

I was wondering if you thought it would be beneficial to set up an account with them?
(they recommended a 'smart investor account', or something to that effect)
Or should I just use Bpay from the accounts I hold with WestPac?
(I think bPay was probably the easiest option if you're not a CommonWealth customer)

Also, there was something about a CHESS sponsorship program, which I didn't really understand. Does anyone know what that is all about?

Any help would be appreciated.

Cheers.

 

You dont need a bank account with CBA to use comsec. They just give you cheaper brokerage if you do.

CHESS is a electronic method of giving you ownership of stock. Its managed by the ASX. In the olden days you would get a psysical paper title to the stock you buy, these days its all electronic.

 

Hi Compleks,

Read Frequently asked questions about CHESS and ASX Clearing & Settlement (CHESS)

CHESS stands for Clearing House Electronic Subregister System.

The sponsorship program refers to the second part of CHESS (ie, Electronic Subregister System) which if you sign will receive a HIN (Holder Identification Number) which all your buys will be registered with in this one "bucket". If you don't register with a HIN all your purchases for different stocks can have different registration details (mailing details) and different SRNs (Securityholder Reference Numbers).

A HIN starts with an "X" and an SRN with an "I" some silly share registers use a bad font and the "I" looks like the number 1.

Some companies who were registered overseas and didn't have alot of trading in their stock didn't bother register for a CHESS register because of the cost, they traded with share certificates, splitting those were very annoying with a PINK on-market transfer form and the brokers stamp.

For these the registration numbers started with a "C" (ie, for certificated).

If you've got any other questions about CHESS let me know.

Cheers,

Dan

 

Thanks for the replies guys.

I'm still putting this off, as I'm not sure exactly where I want to take my investing next. I'm still saving up to get my managed fund portfolio properly established, then I may consider investing directly into shares (if it fits well with my strategy).

So, I assume from what you guys have said that it would obviously be alot easier to trade shares if I was subscribed with the CHESS?

Do you think it would also be easier if I opened a Commonwealth account?
I'd rather keep everything under the same roof (so to speak), but if it's going to benefit me in the long run then I guess it's not such a big issue.

Thanks guys.

 

Hi Compleks,

I'd say that it is easier administratively keeping everything together.

Cheers,

Dan

 

I thought you were with Westpac.
I use Westpac Broking, very easy to setup and use. Trades are $29.95 up to about $30k. Reasonable features. Gripes come from active day traders, since Westpac watch lists are refreshed at a button press, not constantly. But I'm not a day trader, so I'd rather refresh at my leisure.

I doesn't really matter who you go with. If you plan to do it yourself then go with Commsec, ETrade or Westpac. If you want advice from a stockbroker and maybe some inside running at IPOs, then go with a full service broker. Although sometimes the online discount houses get the IPOs too, eg Kerr Neilson's Platinum through Commsec.

If you decide to change brokers in the future, that's easy too. You just ask your new broker to transfer your holdings to them, and they then become your CHESS sponsor. Doesn't cost anything usually.

 

Hey, thanks Rod.

I didn't even realise that Westpac had a system for trading shares. Everyone I had spoke to seemed to use Commsec, so I assumed they were the best option.

I'll definitely check out what Westpac has to offer.

Thanks guys.

 

I wonder why a lot of people use Commsec,
Is it easier to use than Westpac broking or is it something else?
Cheers

 

i have both comsec and westpac.

Comsec is cheaper for smaller trades (19 for 10k worth), however westpac as mentioned is about (33 for 30k)...

i prefer the daily graphs in westpac - comsec dont have this option, however with yahoo charts they are better than westpac (however not real time), and i do all my trading via comsec as they have my margin loans, in my opinion westpac margin loans are just too expensive...

andrew west is also quite good (same price as westpac) and have alot more research...

 

Thanks Dave
cheers

 

Having used both Westpac and Commsec (still using) if you are looking at moving into margin loan use in the future Commsec is much easier, it also has a lot more research.

With Margin Loans Westpac lend through BT Financials so you have to link from various areas and its a pain in the a**. Where as, Commsec let you integrate it all into one and they provide the margin facility direct.

With regards to your main question, I pay to CommSec from my Westpac and Suncorp accounts and don't hold a bank account with Commbank and it's straight forward.