Australian (ASX) Stock Market Forum

Non-CFD platform? (1 Viewer)

Joined
Dec 29, 2020
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Hi Everyone,

I am new here and I hope this subject has not been covered.

As a new trader I have been looking for which trading platform to finally use once I have enough capital and practice under my belt. As a newer trader with limited capital I would be looking to be trading non leveraged and would like to actually own the stocks as well.

I have been searching the internet for a non cfd trading platform where you actually own the stocks. So far all I can find is Commsec which has crazy high fees for my size trades. Is the any other platforms that meet my criteria in Australia?

-mostly trading asx
-low fees
-non cfd or leveraged
-good easy to use interface

Any help would be appreciated.

Thanks
 
Joined
Sep 18, 2008
Posts
3,846
Reactions
991
Hi Everyone,

I am new here and I hope this subject has not been covered.

As a new trader I have been looking for which trading platform to finally use once I have enough capital and practice under my belt. As a newer trader with limited capital I would be looking to be trading non leveraged and would like to actually own the stocks as well.

I have been searching the internet for a non cfd trading platform where you actually own the stocks. So far all I can find is Commsec which has crazy high fees for my size trades. Is the any other platforms that meet my criteria in Australia?

-mostly trading asx
-low fees
-non cfd or leveraged
-good easy to use interface

Any help would be appreciated.

Thanks
Most all Australian brokers and some overseas brokers use the CHESS system for ASX stocks. You own the stocks as they are held under your own HIN (Holder Identification Number) and you can transfer your holdings to any other broker when you like. Some foreign brokers, like Interactive Brokers, use a custodian for ASX stocks, but so long as it is a big broker, like IB, I wouldn't be too worried.

Check the Finder website for the cheapest brokerage. The banks are similar in cost, but some of the newer brokers like SelfWealth have a flat brokerage fee (I think $9.50 per trade). Some have free brokerage, which can be OK for ASX stocks, but there may be hidden costs for overseas shares that is usually built into the exchange rate.

For US trading all brokers use a custodian as CHESS isn't supported for non-ASX shares. Be careful of the pricing. Those with low or no brokerage often load up on the exchange rate, taking 0.6% or more when you need to exchange funds to or from AUD to the other currency. IB is one of those with no exchange fees and minimal brokerage, but they are not that suitable for newbies. SelfWealth are also $9.50 I think, but charge 0.6% for forex. Avoid Nabtrade for US trading as they do not give you a USD account for holding your cash between trades, so you get hit with the forex fee (I think 0.6% to 0.75%, depending on time of day) every time you buy and sell (as you have no USD account, a sell must be converted into AUD even if the proceeds are going to be immediately used to buy other US shares, which means they hit you with the forex fee once more to convert those proceeds, now in AUD, back to USD).

I don't know the situation with CFDs. You seem to be saying you don't want to trade CFDs or use margin. Not using either would be the default position with all brokers I think, though there may be a few dedicated to CFDs only. You may be confusing the ownership of CFDs using a broker that supports trading CFDs, with the ownership shares by those same brokers. As I said, if they use the CHESS system, you own them.
 

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