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Newbie: Bank Shares

Discussion in 'Shares' started by archangelsupreme, 7th Sep, 2007.

  1. archangelsupreme

    archangelsupreme Well-Known Member

    Joined:
    7th Sep, 2007
    Posts:
    206
    Location:
    Australia
    I realise that Bank Shares are hot right now and a pretty solid investment.

    Though for a newbie, which bank would offer the most value.

    I've heard that NAB and ANZ are growing pretty fast, and haven't really heard much about Commonwealth Bank or Westpac recently in the news.

    Are NAB and ANZ the ones to go at this stage.

    Any other shares you would recommend at the momment. Thanks.
     
  2. TheCamel

    TheCamel Active Member

    Joined:
    13th Aug, 2007
    Posts:
    30
    Location:
    Canberra
    I'm happy with my small amount of commonwealth shares.
    They are showing steady upward growth over the 3 weeks or so i've held them.

    I bought based on a casual conversation with FIL.


    This is not a recommendation or suggestion, but merely an observation on my personal holdings. you should of course do your dd and work out how CBA (or any bank) fits into your overall plan, and your risk profile.


    i'm also very happy with bhp.
     
  3. archangelsupreme

    archangelsupreme Well-Known Member

    Joined:
    7th Sep, 2007
    Posts:
    206
    Location:
    Australia
    Is CommSec the way to go for new starters to shares?

    I find their "cost" or fees very confusing, can someone please flesh this out...thanks.
     
  4. TheCamel

    TheCamel Active Member

    Joined:
    13th Aug, 2007
    Posts:
    30
    Location:
    Canberra
    archangel, i've made 4 buys, and paid 29.95 each trade.

    i don't know if that's cause my volume on each trade was very small, or cause my total trade volume is very small..
    in honesty, i haven't fully looked into how they charge or why..
    it's just a cost of business

    *edit*
    actually, I paid that much because of the size of my trades. i don't know how one becomes "preferred" - maybe lots of trades, or extra fees on top, i don';t know, however, it seems fairly simply beyond that:

    Share trades Internet Preferred1
    $19.95 up to $10,000 transaction value
    $29.95 (up to $25,000) 0.12% (above $25,000)

    Share trades over the Internet
    $29.95 up to $10,000 transaction value
    0.31% (above $10,000)

    so basically, if i do any traes up to 10K, i pay 29.95.
    if i do trades over, say a 20K trade, it will cost around 62.
    Although, to me, that seems quite expensive.
    on a 200K trade, around 620.
     
  5. jingo

    jingo New Member

    Joined:
    26th Jul, 2007
    Posts:
    2
    Location:
    Melbourne
    If you open up a cba trading account and deposit $5000 into it the fees are much less than $29 per trade - They are around $17 per trade.
     
  6. TheCamel

    TheCamel Active Member

    Joined:
    13th Aug, 2007
    Posts:
    30
    Location:
    Canberra
    that would have been nie to know :p
     
  7. cheeyeen

    cheeyeen Member

    Joined:
    4th Sep, 2007
    Posts:
    22
    Location:
    Melbourne, VIC
    With ComSec you need to open a Commonwealth Direct Investment Account(CDIA) account and nominate that account as your settlement account to get the preferred rate of 19.95 for trade value less than 10,000AUD.
    Go to this place to download the form to open the account.
    Commonwealth Securities Ltd.
     
  8. Bantam Roosta

    Bantam Roosta Well-Known Member

    Joined:
    7th Feb, 2007
    Posts:
    115
    Location:
    Canberra, ACT
    Or just open a margin loan with them. Then you don't need your own cash.

    BR
     
  9. Venger

    Venger Member

    Joined:
    30th Jul, 2007
    Posts:
    12
    Location:
    Brisbane QLD
    While the CDIA PDS refers to $5000 initail deposit to kick off the account, you don't need to keep the money there after setup. I keep $10 in mine just to make sure I'm covered for any surprise fees. I'd much rather have the $5000 invested, or at a minimum, reducing the loan balance on one of my LOCs.