CHESS Sponsorship

[Aventador]

Hey all,

I'm new to trading and have recently been doing small trades. I'm currently using IG markets for share trading on the ASX which the shares are held through the custodian model, I've been reading more and more about CHESS and am now unsure if I should move over to a CHESS sponsored broker like CommSec

Can you please give me some pointers on if I should move and if I don't what I stand to lose?

Cheers

 

[ROE]

Hey all,

I'm new to trading and have recently been doing small trades. I'm currently using IG markets for share trading on the ASX which the shares are held through the custodian model, I've been reading more and more about CHESS and am now unsure if I should move over to a CHESS sponsored broker like CommSec

Can you please give me some pointers on if I should move and if I don't what I stand to lose?

Cheers

CHESS is a safer option for sure as the asset is in your name, no one can touch it but you.
IG and stuff hold in custodian because they are an oversea based broker and they do have regulation to safeguards your holding but you never know how safe until you make a claim when **** hits the fan

 

[Aventador]

Is there a recommended chess sponsored broker?

I've heard mixed things about cmc and commsec is too expensive for trades

 

[willy1111]

Chess offers more security/peace of mind that if the broker goes under you don't lose the value of your holdings. That is because they are held under a central body under your HIN (holder identification number). The broker facilitates the transaction, you will get a contract note when you buy/sell and you will also receive via snail mail a chess statement reflecting your holdings on each company that you own shares in share register. If the broker goes under, you can simply sell your holdings through another broker and sustain no financial loss. You would also need to consider the security of where your cash is held, but most bank accounts are government guaranteed to $250k, although it could take years to get your cash back.

A custodian broker like Interactive Brokers and by the sounds IG, there is no chess/hin. The shares are owned in the broker name. So I would suggest regularly printing off one of their statements as a record of your holdings just in case the go under and you can no longer access their systems. I know IB is a member of the SIPC (securities investor protection corporation) which is insurance that is meant to cover a portfolio upto $500k and cash of $250k in the event of the broker going under.

They are cheaper and it is great not getting a plethora of paperwork via snail mail like you to do through CHESS but I would say slightly more risky. It is up to you to determine your own risk profile and what you are prepared to risk. Probably depends how much is at stake to.

 

[Aventador]

Thanks for that, it does sound like chess is the much safer option, is there any recommendations on brokers?

Looking for cheap fees, a good mobile app, live data and chess sponsored

 

[ROE]

Thanks for that, it does sound like chess is the much safer option, is there any recommendations on brokers?

Looking for cheap fees, a good mobile app, live data and chess sponsored

Not really, most CHESS brokers are Aussies and it usually the main big 4 banks and their fee is pretty much similar. Comsec owned by CBA and is the biggest retail broker in Australia.

there are other smaller players like openmarket, google search and find the one that suits you in term of fee and security and features.

 

[pixel]

instead of Google, you can find a broker here:

http://www.asx.com.au/prices/find-broker.htm

 

[Habakkuk]

instead of Google, you can find a broker here:

http://www.asx.com.au/prices/find-broker.htm

Did you notice that there is no possible way to get Westpac Broking on that list? I've tried.

There are several others that didn't rate a mention either.

 

[peter2]

The ASX should be ashamed. They should be providing complete and unbiased broker lists.
Like most "lists" you have to pay to get on this one.

 

[alak]

This explains a lot!! I have contacted IG three times today to ascertain my HIN and they keep telling me that the ATO is the only way to get it. I have had alarm bells ringing!! It sounds very dodgy.

I simply want my HIN so that I can register for dividend reinvestment with my two companies I am a shareholder of.

As per previous posts, I was wanting to buy quickly and circumnavigate lots of paperwork (delays) and high fees to begin trading... now I understand the difference.

Looks like I have some work to do!

 

[HelloU]

This explains a lot!! I have contacted IG three times today to ascertain my HIN and they keep telling me that the ATO is the only way to get it. I have had alarm bells ringing!! It sounds very dodgy.

I simply want my HIN so that I can register for dividend reinvestment with my two companies I am a shareholder of.

As per previous posts, I was wanting to buy quickly and circumnavigate lots of paperwork (delays) and high fees to begin trading... now I understand the difference.

Looks like I have some work to do!

bump....for clarity

You do NOT get a HIN with IG (their current structure makes this impossible atm). As a consequence you do not get the usual registry access for these securities.
If you do need/want registry access you will need to transfer the shares to another broker (where you do have a HIN) using the usual broker to broker processes, but using IG's PID information as your originating HIN on the form. Mostly these transfers are free.

 

[HelloU]

Can anyone confirm if Interactive Brokers is still a custodian broker (so do not use CHESS). They seem to be popular on this site.

 

[tech/a]

Correct.

 

[KiwiAndy]

I am a customer of Interactive Brokers and hold quite a few ASX stocks (with IB as custodian). I would like to transfer these to directly held by me. Does anyone know how can I get a HIN?

 

[pookie]

If you do need/want registry access you will need to transfer the shares to another broker (where you do have a HIN) using the usual broker to broker processes, but using IG's PID information as your originating HIN on the form. Mostly these transfers are free.[/QUOTE]

Hi, I am in same position. I just looked at Comsec site and they seem to be charging $54 transfer fee per share transfer. I have 10 different share parcels so that would cost me $540 to xfer from IG to Comsec ... OMG !! Is this correct, or am I misreading it?

https://www.commsec.com.au/support/frequently-asked-questions/15.html

Cheers

Pookie

 

[HelloU]

No....u have mis read. not sure if you want IG/commsec or IB/commsec (I cannot comment on IB) but IG/commsec is free.

What u are reading is when the name changes of the owner....i.e. triggers a CGT event at ATO.

 

[pookie]

No....u have mis read. not sure if you want IG/commsec or IB/commsec (I cannot comment on IB) but IG/commsec is free.

What u are reading is when the name changes of the owner....i.e. triggers a CGT event at ATO.

I'm not sure what you mean by IB. I currently have shares being held by IG Trading. I want to xfer them into Comsec. But from what I read in the link above is that Comsec will charge $54 each. This is the part that is confusing. Their website reads "Transfer fee: A fee of $54 is payable for each different stock transferred. You can attach a cheque for payment of the request, or the fee will be automatically debited from the bank account linked to your CommSec trading account. If you are transferring from one CommSec trading account to another, the fee will be debited from the account receiving the shares."

This seems to mean that for each stock (parcel of shares) a fee is charged. I'm not sure about the transaction having to trigger a CGT event to qualify for a fee.

Sorry if I am still not getting this, I am new to trading

Cheers

Pookie

 

[HelloU]

@pookie
No worries, when u said 'I am in same position' I assumed u meant the same as the post above urs where chap was talking Interactive Brokers (IB). No matter. You are talking IG. No matter.
Commsec Broker to Broker is free - as is IG. MUST be identical name details or no go. Use PID info for IG (as above in posts) to fill in form where it asks for your HIN at IG - as u do NOT have a HIN at IG.

The $54 thing is when going from one owners name to another....like Mr Smith going to Mrs Jones. This name change is the CGT trigger...............no CGT trigger when Mr Smith to Mr Smith (broker to broker) that u r talking.

Different form to $54 form....u need Broker to Broker form from Commsec (if they are getting the holdings). Send it to Commsec and they do the deed for u.

Hope clear now.

 

[HelloU]

@pookie
minor detail, prolly opened ur commsec acc with first, middle, last names........prolly opened IG with first, last names. These are NOT the same for xfer purposes. If this is TRUE, then u will need to get fixed at IG end by getting ur acc renamed before attempting to do Broker to Broker - or xfer will fail.

 

[HelloU]

@pookie
last go
You need to already have the Commsec account setup when u do this (sorry if that was suck eggs stuff). My post above is VERY important due to the sign up process at IG. Goodum Luckum.