I registered with 2 online brokers now I'm confused :(

[nooberator]

Hi guys,

Heres what happened.

I registered with cmcmarkets and I got a letter from the asx saying their my CHESS Sponsor.

Then I registered with commsec and I got a letter from the asx updating my details as they are now my CHESS sponsor.

So does this mean I cant trade with my cmcmarkets account anymore?

 

[cutz]

Re: I registered with 2 online brokers now Im confused

Hi guys,

Heres what happened.

I registered with cmcmarkets and I got a letter from the asx saying their my CHESS Sponsor.

Then I registered with commsec and I got a letter from the asx updating my details as they are now my CHESS sponsor.

So does this mean I cant trade with my cmcmarkets account anymore?

Don't be confused nooberator,

It just means you have two CHESS sponsors, so the parcels you buy with cmc and the parcels you buy with comsec will each have their own unique HIN numbers.

 

[Sean K]

Re: I registered with 2 online brokers now Im confused

You probably can.

Maybe give them a call?

 

[Boggo]

Re: I registered with 2 online brokers now Im confused

Don't be confused nooberator,

It just means you have two CHESS sponsors, so the parcels you buy with cmc and the parcels you buy with comsec will each have their own unique HIN numbers.

Exactly as cutz said, its like having two visa cards or two savings accounts as examples.

A bit worried about anyone racing into to things they don't understand though and then asking questions later, you are heading for a fall if you continue with that attitude.

 

[Assasin]

Hi guys,

Heres what happened.

I registered with cmcmarkets and I got a letter from the asx saying their my CHESS Sponsor.

Then I registered with commsec and I got a letter from the asx updating my details as they are now my CHESS sponsor.

So does this mean I cant trade with my cmcmarkets account anymore?

I've just done the same (Bell-Potter and Comsec) and also assume that I can use both. My plan was to leave the stuff I have with BP and do some other stuff on Comsec
Any ideas welcome.
Thanks.

 

[Bill M]

I've just done the same (Bell-Potter and Comsec) and also assume that I can use both. My plan was to leave the stuff I have with BP and do some other stuff on Comsec
Any ideas welcome.
Thanks.

If you haven't signed and authorized the transfer of your BP CHESS sponsored stocks then BP should still have your "stuff". As others have said you should get a second HIN with the Comsec account. I've been using 2 brokers with 2 seperate HIN's for years now, cheers.

 

[pixel]

It's the same as having two bank accounts. You can't spend money you have in account A by writing a cheque drawn on account B. Just as you would have two different account numbers, you will find the HIN numbers differ between your CMC and Comsuc brokerages. That's all there is to it.

If you want to avoid confusion, maintain two separate portfolios: one for CMC, the other for Comsec. And don't try to sell shares through one broker, when you have bought them through the other.

And in case someone thinks it's silly to have two brokers: Different brokers offer different trading platforms, which means differeing analyses, charting packages, and other overlapping or exclusive freebies. For years, I've maintained accounts with CMC, Comsec, Westpac, and lately Paritrade (replacing Comsec). It's a good insurance against one platform "keeling over" - which has happened. In a pinch, I can at least pick up the phone and place a sell order I saw on "the other" platform that it needed selling.

 

[nooberator]

The thing that still has me confused is the letter from the ASX,

If I had 2 CHESS sponsors should the letter not reflect this.

Instead it shows Commonwealth Securities as the only CHESS sponsor

Commsec state
To be eligible for Internet Preferred trading, you must be CHESS sponsored by CommSec

I havnt found any such clause with CMCmarkets.

Has anyone had any issues with having multiple brokers and not getting the preffered brokerage rate?

 

[pixel]

The thing that still has me confused is the letter from the ASX,

If I had 2 CHESS sponsors should the letter not reflect this.

Instead it shows Commonwealth Securities as the only CHESS sponsor

Commsec state
To be eligible for Internet Preferred trading, you must be CHESS sponsored by CommSec

I havnt found any such clause with CMCmarkets.

Has anyone had any issues with having multiple brokers and not getting the preffered brokerage rate?

Mate, you have to read your contracts.

I take it ASX has sent you two letters, each with one HIN, which is linked to the sponsoring Broker - Comsec for one HIN, CMC for the other. Think of the HIN as of an account number. One identifies Comsec, the other CMC. Just like you can have two or more bank accounts, you now have two sponsoring brokers. But each will only sponsor instruments you bought within their sponsorship.

Comsec's condition means nothing more than common sense dictates: Whatever you buy under the Comsec regime must be "sponsored" by them, which will automatically be the case when your portfolio is administeed by them. Still, the securities are vested in your name, under the HIN allocated to you (from the ASX) for the Comsuc-sponsored CHESS holdings.
Whatever rate Comsec charge you will apply only to trades involving instruments bought under that "sponsorship".
Sorry, can't express it any more clearly than that.

With CMC, you have the same contract, only under another HIN. Check the two, and you'll find they're different. Make sure that shares you buy under CMC sponsorship (i.e. through the CMC Broking account) are also vested in your name, and the only thing that links them to CMC is the HIN sponsored by them. Broker-sponsored HINs usually begin with the letter 'X'.

 

[nooberator]

Thankyou for all your help Ive figured it all out now.

The second letter I received from ASX is for

Change of name and/or physical address and/or email details in CHESS.

basically I had a commsec account from years ago and they updated the CHESS details as there was a misspelling with my name when I re-registed with them last week.

I wrongly assumed they were updating themselves to be my CHESS sponsor

2 seperate accounts, 2 seperate HINs, makes perfect sense now.

I think I might be comming down with a mild case of chart-itis