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CommSec Review 2024

Website: www.commsec.com.au

Min. Deposit: US$ 500

Leverage: 1:500

Trading Platforms: CommSec, CommSecIRESS

Regulation: ASIC

Headquarters: Australia

Founded: 1995

Regulatory Licenses:

- Commonwealth Securities Limited – authorized by ASIC (Australia) registration ABN 60 067 254 399, AFSL 238814

Updated on March 4, 2024

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Our Review Method ▲

Broker Insight, a team of financial experts with more than a decade of experience in Forex trading, conducted a comprehensive review of CommSec's trading services. This extensive evaluation encompassed various key aspects of the broker's offerings. The main areas of focus included:

Trading Offering: They assessed the range of financial instruments and trading opportunities provided by CommSec. This involved examining the types of assets available for trading, such as stocks, bonds, currencies, and commodities.

Fees: The review scrutinized the fee structure of CommSec, including any commission charges, spreads, and potential hidden costs. This analysis aimed to provide a clear picture of the financial obligations traders might face while using CommSec's services.

Trading Platforms: Broker Insight evaluated the trading platforms offered by CommSec. This included a review of their functionality, user-friendliness, technical tools, and overall trading experience offered to the clients.

Verified Regulations: They verified the regulatory compliance of CommSec, ensuring that the broker operates under the guidelines of relevant financial authorities. This step is crucial for assessing the legitimacy and safety of the broker.

Customer Service: The quality of customer support provided by CommSec was tested. This involved contacting their customer service team to gauge the response time, the helpfulness, and the overall effectiveness of the support offered.

Real Trading Conditions: Broker Insight placed actual trades with CommSec to experience firsthand the trading conditions. This practical test helped them to evaluate aspects such as order execution speed, slippage, and the overall reliability of the trading environment.

Based on this thorough investigation, Broker Insight provided an expert opinion on CommSec. Their review is aimed at giving potential clients a well-rounded understanding of what to expect from trading with CommSec, highlighting both the strengths and any possible areas for improvement. This type of in-depth review is invaluable for traders looking to make informed decisions about choosing the right broker to meet their trading needs.


What is CommSec? ▲

CommSec, an Australian brokerage firm, has been operating for over two decades, confirming its successful position in the industry and consistently striving for professionalism. Initially, CommSec emerged as an investment firm, offering a broad range of opportunities for individuals to either invest through 7 simplified options or embark on trading themselves.


Is CommSec any good? ▲

Indeed, CommSec stands as one of the premier online trading providers in Australia, actively fostering the financial industry's growth by educating traders and supporting regional communities through various initiatives.


Is CommSec expensive? ▲

No, CommSec is perceived as a broker that offers good value, particularly with its options for beginner traders and low initial deposit requirements.


CommSec Pros and Cons ▲

Pros

  • CommSec is a leading online trading provider in Australia with an excellent reputation.

  • It is a wellregulated broker offering great investment opportunities.

  • Unique access to trade Shares and Options on the CommSec and CommSecIRESS platforms.

  • Quality customer support.

Cons

  • More suitable for professional traders.

  • Does not offer Forex and CFD trading.

  • No Demo Account available.


CommSec Review Summary in 12 Points ▲

  • Headquarters: Australia

  • Regulation: Australian ASIC

  • Platforms: CommSec, CommSecIRESS

  • Instruments: Shares, ETFs, Options, Cash, Fixed Income Securities, Equities, and International Funds

  • EUR/USD Spread: Commission charge

  • Demo Account: No

  • Minimum deposit: $500

  • Base currencies: Various currencies supported

  • Education: Professional Education with Webinars and advanced research

  • Customer Support: 24/5


Overall CommSec Ranking ▲

CommSec has cultivated a reputation as a trustworthy broker among experienced traders, thanks to its favorable trading conditions. Our experts highly recommend it as an excellent choice, following thorough testing and comparison with over 1000 brokers. CommSec's Overall Ranking stands at 7.9 out of 10.


Is CommSec safe or a scam? ▲

CommSec is definitely not a scam; it is a reputable firm authorized and regulated by the Australian ASIC regulator, presenting a low-risk investment option due to stringent regulations.


Is CommSec a regulated broker? ▲

CommSec operates under the trading name of Commonwealth Securities Limited, a wholly-owned subsidiary of the Commonwealth Bank of Australia. It is a market participant of the ASX and Chi-X Australia. Being a subsidiary of a well-established financial company and bank, its trading services and settlements are authorized by the Australian Securities and Investment Commission (ASIC) and adhere to necessary laws. The regulatory oversight and reputation in the finance world act in your favor, as a regulated company implies constant auditing and maintenance of transparent conditions. Thus, trading with CommSec, a regulated broker and part of a reputable Bank in Australia, provides a trustworthy and competitive trading environment.


Investors Protection ▲

Beyond the regulation requirements, CommSec additionally safeguards client funds through its banking regulated service, enhancing the experience within and beyond the market. Trading with a regulated broker ensures support in case of any misunderstandings or questions, an assurance seldom provided by unregulated firms.


Instruments ▲

CommSec distinguishes itself by offering an array of trading instruments, including Shares, Options, Cash, Fixed Income Securities, Equities, ETFs, and International Funds. It caters to different levels of traders by providing beginners with various investment programs and active traders with specialized conditions. The CommSec One program, aimed at professionals who meet certain criteria over a 12-month period, offers numerous trading benefits and dedicated support. Its diverse range of trading instruments earns CommSec a commendable score of 3.9 out of 5, although the absence of Forex and CFD trading options marks a significant limitation.


Accounts ▲

CommSec presents a unique investment approach, eschewing traditional account types for solution-focused options. The broker offers Shares Account, Option Account, Margin Account, and International Share Account, each tailored to the specific offerings of the broker. This customization extends to the seven Investment Options available, allowing traders to select a portfolio that matches their trading conditions and preferences. For beginners, the CommSec Pocket option allows for portfolio building with a minimal investment of $50.


Fees ▲

CommSec's fee structure is designed to accommodate traders of all sizes and needs, primarily through commission charges. Additional fees may apply based on the services used, so it's advisable to check the official website for details. Compared to over 1000 other brokers, CommSec's fees are considered low, receiving a score of 4.0 out of 5. This rating reflects the broker's competitive fee structure, although fees can vary depending on the account type and assets traded.


Spread ▲

CommSec employs a pricing strategy with low brokerage rates starting at $10 per trade for transactions under $1,000, ensuring better value for money. The broker's trading fees are based on commissions rather than spreads, adjusting according to the trading instrument and volume. The CommSec One program and other tailored conditions offer additional benefits and improved terms for investors. Despite being entirely commission-based, CommSec's approach to fees is ranked with a score of 3.5 out of 5, highlighting its competitive edge in commission rates over spread-based trading.


Share Packs ▲

CommSec's fee structure varies according to the Share or Asset traded, with options for trading over the Phone or purchasing Share Packs. For example, a pack of 6 Australian stocks is charged at $66. This pricing model reflects CommSec's effort to offer value through bundled trading options, accommodating different trading strategies and volumes.


Deposits and Withdrawals ▲

CommSec, being a leading forex broker, establishes its funding methods directly connected to your nominated bank account for seamless transactions. This direct link ensures that any purchase or sale of Shares automatically reflects on your bank account balance, providing a streamlined process for managing your investments. The efficiency of CommSec's funding methods has earned it an excellent rating, with a score of 4.6 out of 5. The broker sets a higher threshold for minimum deposits at $500, which is above the industry norm, and currently, the only available method for funding is via bank transfers. This exclusivity might limit some investors, but it enhances the security and directness of transactions.


Pros

  • Direct linkage to bank accounts simplifies transactions

  • High level of security with bank transfers

Cons

  • Limited to only bank transfer methods

  • Higher than average minimum deposit requirement


What is the minimum trade on CommSec? The platform allows a minimal initial investment of $50 for beginners through the CommSec Pocket, but for a standard Share Account, an initial purchase must comprise at least $500 worth of shares.


Withdrawals at CommSec mirror the deposit process, with funds automatically returning to the connected bank account. This symmetry between deposits and withdrawals further simplifies the investment process for users.


Trading Platform ▲

CommSec prides itself on its proprietary trading platform, fortified with advanced technology and security measures. The platform facilitates direct Share trades, with associated charges directly debited from your bank account. For those requiring live-stream quotes and data, CommSecIRESS offers instant market movement responses, though it comes at a cost. However, complimentary access is granted to users who execute 8 or more trades, making it a valuable tool for active traders. Rated 4.7 out of 5, the CommSec Platform stands out amongst over 1000 brokers for its exclusive, powerful software and comprehensive features without offering any alternative platforms.


Pros

  • Proprietary software tailored to share trading

  • Complimentary access to CommSecIRESS for active traders

Cons

  • Limited to only one trading platform


Mobile trading is also supported through the CommSec mobile app, offering full control over orders and account management. Additionally, placement through phone or internet is available, providing flexibility in how orders are placed.


Customer Support ▲

One of CommSec's standout features is its customer support, which provides comprehensive assistance to investors. The support team is available 24/5, offering service through live chat, phone, or email. CommSec's customer support is rated remarkably high at 4.5 out of 5, reflecting the broker's commitment to providing timely and knowledgeable assistance, although it is noted that support is not available during weekends.


Pros

  • Wide range of support options

  • High level of service and responsiveness

Cons

  • Not available on weekends


Education ▲

CommSec excels in educational offerings, providing a wealth of resources to both novice and seasoned traders. From insightful webinars to comprehensive trading videos and analyses, the broker ensures that traders are well-equipped with the knowledge to succeed. The quality and variety of educational materials, combined with trusted research including Goldman Sachs stock and Morningstar ratings, earn CommSec an education rating of 4.4 out of 5.


Pros

  • Comprehensive learning materials and webinars

  • Highquality research and analysis tools

Cons

  • Primarily focused on share trading education


Conclusion ▲

CommSec, backed by the robustness and reliability of the Commonwealth Bank, offers a sophisticated trading environment primarily suited for active and professional traders interested in Share trading. Although it may not cater to those interested in CFD and Forex Trading, it welcomes beginning traders with its top-tier educational materials and investment programs designed for investors of all sizes. The broker's focus on active trading, without providing programs for passive investments or bonus offers, positions it as a highly recommended platform for:


  • Professional Traders

  • Investments

  • Share Trading

  • Stock Trading

  • Option Trading

  • Commissionbased Trading

  • Traders from Australia


While CommSec's unique offerings and strengths make it a standout choice for certain traders, those looking for a wider range of trading options or lower entry requirements may need to consider other brokers.

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