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Fee to deposit cash into my online broking account

Discussion in 'Beginner's Lounge' started by johnnygetyourmum, Jun 29, 2019.

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  1. johnnygetyourmum

    johnnygetyourmum

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    Hi there.

    I'm just getting started and tonight I set up an online trading account with CMC.

    Their fees on trades seem reasonable but then when I looked at the "How do I fund my account" section, looks like I got to pay 0.6% of the deposit amount to deposit cash into my CMC account.
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    You can fund your account using a credit or debit card or by transferring funds from your bank account. There is a 1% charge for credit card payments and 0.6% charge for debit cards.
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    Is this to be expected from all online brokers?

    I just want to do the odd trade. Having access on my phone would be handy. Am I better off just going with ComSec?

    Thanks.
    John
     
  2. Value Collector

    Value Collector Have courage, and be kind.

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    Looks like they are just passing on the credit card fee they will be charged.

    When you buy things using credit cards, the merchants have to pay a fee.

    Eg, you purchase something worth $100, and your card is debited $100, but the merchant only gets $99.40 put into their account.

    Retailers don’t usually mind because they have large profit margins, the thing they sold you for $100 probably only cost them $70, so they don’t care about only getting $99.40 after the 0.6% fee.

    However, CMC aren’t making any profit on the transaction of you depositing funds, so will want to pass the 0.6% fee onto you .

    Simple solution is just avoid using a credit card.
     
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  3. HelloU

    HelloU

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    "Is this to be expected from all online brokers?"

    not in my experience for transfers of this type - but only 1 of my brokers will do this i think?
     
  4. myrtie100

    myrtie100

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    Hi John, I'm quite sure they would offer other ways of funding your account. Look for info on direct bank transfers or bpay.
     
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  5. noirua

    noirua

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    In the EU it is illegal to make any surcharge when payments are made by Credit Card or Debit Card.
    https://europa.eu/youreurope/citizens/consumers/shopping/pricing-payments/index_en.htm

    In the United States it is illegal to make any surcharge if payments are made by Debit Card. It is legal to add a surcharge for Credit Cards in America after a recent lawsuit but few companies have adopted surcharges.
    https://www.thebalance.com/credit-card-surcharges-315423

    Australia is one of the few countries in the world still allowing surcharges on debit cards. However, it does seem unreasonable for CMC to make a 0.6% charge on debit cards: They may be acting illegally as 0.5% is the considered maximum and they must not charge more than it costs them.
    https://www.abc.net.au/news/2017-08...ve-surcharges-banned-across-australia/8859100
    https://www.news.com.au/finance/mon...a/news-story/d88cafbf97096fcc56f63951e388057f
     
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