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CMC Markets undercuts with online brokerage fee

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noie

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19.95 to 9.90...

AUSTRALIA'S online stockbroking industry is set for a major shake-up, with CMC Markets slashing its brokerage fee as it chases market share.
The stockbroking firm yesterday revealed it was cutting its online stockbroking fee from $19.95 to $9.90, making it Australia's lowest brokerage rate for online share trading.

CommSec and E-Trade, which control an estimated 80 per cent of the online broking market, charge $19.95 and $32.95, respectively


http://www.theaustralian.com.au/bus...ne-brokerage-fee/story-e6frg916-1225898695250

and i just signed with e-trade
 
I would hope for their sake the product is better than the terrible CFD offering. The worst on the market hands down.
 
Does anyone think that E-Trade or Comsec will reply to this with a decrease in fees?
I don't think this is enough unless they see a drop in user base
but im hoping..

on another note,

a heap of my trades were billed at 24.95 then they went to 19.95 are people aware of a discount in E-Trade, i have tried looking through the docs but dont see this mentioned.
 
am interested in the low brokerage, but do have a few questions for people who trade with them to find out if they will fit my way of trading.

platform: when I place a buy order on the platform, can I place the sell order at the same time for when the buy will be filled?

how long is the order valid for?

funds seem to be held at Bankwest. will that be in your own name?

some brokers want the funds to be in the account before any order can be placed.

with other brokers you can place orders up to:
value of shares already on your account PLUS money in your account PLUS trading credit.

others 30x available funds.

how does CMC do this?

in case of a partial trade do you pay brokerage for each day a partial trade goes through or is it 9.90 for the whole order?

do they cover all the stocks in the ASX as well as the company options?

I am pretty certain this new pricing will shake up the other brokers depending on how much noise CMC will make about their new rate.
 
noie said:
The stockbroking firm yesterday revealed it was cutting its online stockbroking fee from $19.95 to $9.90, making it Australia's lowest brokerage rate for online share trading.
Click to expand...

That's great news,

Hopefully players like comsec and etrade lift their game but I'm not sure how they can claim that $9.90 is Australia's lowest brokerage rate.
 
at the moment I`m trading through IB @ $ 6.00 a pop, but I wouldn`t mind having a second broker if it meets my requirements.

having 2 brokers will limit the risk to my capital if one of them defaults.
 
the australian brokers place new client`s orders around 7am when the ASX opens up.

wish IB would follow their example instead of doing it hours later after 9 am.
 
E-Trade doesn't scared the crap out of me the first day i attempted to place an order during pre-open, it just sat in open orders for 3 hours then entered the market..

don't understand why i'm not part of the auction.
 
CMC has been going for a couple of years now (@$9.90) any feedback?
 
Depends on your brokerage needs - for me, they have been very good - well priced, full market depth and good website usability.
 
Out Too Soon said:
CMC has been going for a couple of years now (@$9.90) any feedback?
Click to expand...

Reasonable brokerage, free conditional orders, basic free research data - if you want a broker that allows Chess ownership I find them to be very user-friendly. IB is still cheaper at min $6 per trade for Aussie shares, but they don't yet work with the Chess system.
 
So much for easy quick electronic approval of your account. For some reason they still need me to mail them a form after all the online process It's never as quick & easy as they make out, one day someone will not require the usage of Australia Snail Post.

PS thanks for the fast reply
 
It gets worse Now i've rxed the directions by email they require forms signed/witnessed by a JP or govt worker etc I have memories of this **** a few years ago & going arrrgghhh ---it being the reason I'm still with the worst choice of broker possible after 6 years of miserable rip-off- Westkac

Did I do something wrong on the application possibly? Why am I chained & shackled to Festuspac?
 
You'll probably find they simply need to identify you with the standard 100 points of ID reqd by Aussie financial institutions. The Bankwest account would certainly require ID to be opened. Most local shopping centres have JPs at a set time each week/fortnight, you can find the details on the Dept of Justice website.
 
I rxed an email apologising for the electronic check not working, I guess they send it out a lot but no explanation :frown: The "nearest shopping centre" is 40 kms away :frown: & I've got a million valid ways of proving my ID- no I wasn't just released from prison or turned up on a boat.
 
Sounds like it's going the way of the U.S. online brokerage, chopping on the fees down to virtually zero... To me, that was always the cause of the market crash in the U.S. back in early 2000's, making "the pro's" out of everyone out there and destroying the marketplace...
 
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