The Commsec Cash Management account is now part of the Commonwealth Direct Investment Account.
CommSec is one of the largest stockbrokers in Australia. It does not only provide stock trading, but also derivative products, Contract For Differences (CFDs), managed funds, worldwide stocks and Self Managed Super Funds (SMSF) administration. It is owned by the Commonwealth Bank of Australia.
Commsec additionally branch out to products such as the Commonwealth Direct Investment Account (CDIA). A CDIA is a settlement account for your CommSec Cash Management account, which allows you to carry out unlimited electronic and trading operations and also two assisted withdrawals each month with no account keeping fees.
You can even trade through Android, iPad and iOS mobile devices, in addition to
the online platform: you can invest when and where you prefer.
Share Trading Account Offer
Sign up for a CommSec Trade account to get started in the share market. New investors can enjoy 12 trades without paying a brokerage fee.
Save up to $600.
No brokerage on your first 12 trades
No account keeping fees
24 hour online banking
Click here to find out more about this offer
Things to consider about the Cash Management account
Features of the CDIA
The main features of the CDIA are;
Share trading - You can access all the ASX-listed shares or join company floats or Initial Public Offerings (IPOs). You can check all the trends and performances via live market data, implement investing strategies using charting tools and invest even through your smartphone. There are no account fees or minimum trade requirements and you can manage your income with Commsec's dividend service.
Linked cash account - The account works with a different cash linked account. You can open a CDIA or use an existing cash account that you already have. A third possibility consists in borrowing money for your investments.
Earning interest - Every dollar in your CDIA generates interest, which is calculated daily and paid monthly. Please note that the interest is not calculated on any amount you are investing.
Margin lending - You are allowed to get a minimum credit limit of $20,000 in order to increase the size of your investments, trade across a range of sectors and reduce the risk of losses. The interest on your loan could be claimed as tax deduction or you could even p ay it in advance to help you with your tax planning.
You can also decide if you want to pay interest or to capitalise on your loan, investing in more shares or other financial derivatives.
There's also a 5% buffer of the market value in order to protect your investment from volatility: if your portfolio falls under the Maximum Gearing Ratio, a margin call will be started.
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Who is the CDIA most suited for?
The CDIA provides useful information to the traders such as free trading tools, free live market data and independent research. The minimum amount required to invest is $500 in shares, warrants or CFDs.
If you are a newbie, you could consider trading with the CommSec cash account, whereas if you are a more skilled trader, you could consider investing with 'borrowed funds'.
Before applying for the Cash management account, you may need to consider;
Fees and rates: fees depend mostly on the trading options you choose. If you trade with the Cash Management account, you can trade for a brokerage fee from $19.95. There are no account fees and you can earn interest from investments without moving funds between accounts.
If you trade with borrowed funds from CommSec, you are allowed to borrow funds to boost your investments. Brokerage fees are from $19.95 per trade. You can also access online portfolio monitoring and risk management tools.
How to apply for the Cash Management account
You can apply by click 'enquire' which will safely redirect you to the CommSec application page. Choose the option of 'trade with our cash account' during the application process to open a CommSec Cash Management account, which is linked into your CDIA.
Once you have selected one of these accounts, you can join via your NetBank or CommSec ID if you have one. You can still join if you don't have one of these.
You can select the account as individual (if you want to trade in your name only), joint (in joint names), or as company or Trust/SMSF (this one has to be established in Australia).
Click here to find out more about this offer
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