Buying shares on CommSec

miniroo

miniroo

Well-Known Member
Silver Stacker
Hi,

I bought my first shares online through commsec.
Not much, $500 worth and it cost $39.95 in fees.
so far i'm up $12.50

Question is, If I buy more of the same shares on commsec do the two lots join together or are they two separate things?
like if I went to sell them, would I need to do 2 transactions?
are there fees to sell?
 
Hi

You can sell the combined units you own in 1 transaction and will be charged the 1 fee for the sell trade

$39.95 in fees seems high

Look into setting up a CDIA account with Commonwealth Bank and link it to your Commsec account and you should only pay $19.95 for transactions under $10k

Hope this helps
 
miniroo said:
Hi,

Question is, If I buy more of the same shares on commsec do the two lots join together or are they two separate things?
like if I went to sell them, would I need to do 2 transactions?
are there fees to sell?
Click to expand...

They should be grouped together and can be sold as one lot if you want.

those fees are high. might check their details for a better price.
 
Yes, same fee to sell.
When you eventually sell, you can add both the buy and sell fees to your cost base for purpose of calculating capital gains/loss.
No, you dont have to sell the same 'parcels' that you bought - that is, you can buy any number of parcels and then sell the lot as one transaction should you choose. Or you can sell part of a parcel. In short, " the two (or more) lots join together" into one amorphous blob.
Like Boyscout said, you're paying too much brokerage. Should be 19.95 with Comsec, and my guess is he's right that you need a CDIA* account with Commonwealth Bank that is linked to your Comsec trading account to get the cheaper brokerage. What you're paying is ridiculous.

* CDIA = Commonwealth Direct Investment Account
 
Don't know why they charged so much. Fees listed here

24720_commsec_fees.jpg


I'd suggest you maybe call them, I have found them to be good to deal with on the phone.

There are free brokerage services out there tho, might be good if you're doing small transactions (lower minimum trade too).
 
From memory they charge more if you don't settle the trade from your CDIA account. Your commsec account has a linked Commbank account (CDIA), which if you set up in your settings somewhere (or maybe it's a default setting?), you can have the funds sitting in this account, and any trades will settle from this account.

Eg. Buy x shares for $500

Deposit $519.95 into your CDIA account.

After 2 business days, $519.95 is debited from CDIA and the shares settle, which will then appear in your portfolio

The CDIA account is just like any other Commbank account, you can transact online or in person at CBA branches over the counter
 
^^ Yep, the first row in my post above is CDIA, the second row is non-CDIA settlement account.

CDIA is a LOT cheaper above $25k
 
Yep I made a mistake, the fee was $29.95

ok I looked at the CDIA thing and it asked for an SMSF ABN which I don't have so I might pop into a branch and get them to set it up with a tax file number instead.

I shouldn't of mentioned the $12.50 profit because now it dropped, i'm now $4.42 in the red yet the shares have gone up a bit.
the fees make it hard with small purchases but I guess it's the same as buying bullion and paying a premium & postage then spot drops before I get the goods.

MOBILE EMBRACE LTD FPO: what does FPO mean?

I just want to buy $500 at a time when I got loose cash, should I stick to one company for now or spread it round?

Next one I want is RRS Range Resources, it's at 0.006, is that just over half a cent ea?
why would a share be half a cent? oh it is, I just tried to order and for $500 I would get 83333 shares! I like big numbers :)

what happens if shares go below zero, do they just sit there or does the company go bankrupt and it's all over?

Thanks for the help.
 
FPO = Fully Paid Offering, just means a normal share I think.

If a share ever went below zero I'd buy the lot (i.e. get paid to take them!!). No, it's not possible :) Zero's the limit.

Half-cent shares are a fun punt, it means the company isn't valued by the market at shit, but they can bounce around in exciting ways. Just watch lack of liquidity with micro-cap stocks, the price may move but if there are only a few transactions taking place it can be difficult to take advantage of price movements, or worse, your buy or sell order could affect the share price significantly..

Have fun!!
 
Oh BTW you should already have a CDIA as part of your initial setup with CommSec. Just need to update your details to use it as your settlement account I think.
 
miniroo said:
Question is, If I buy more of the same shares on commsec do the two lots join together or are they two separate things?
Click to expand...

Yes they get joined into one lump sum number of shares. Sell as many or as few as you like.
 
miniroo said:
Hi,

I bought my first shares online through commsec.

Question is, If I buy more of the same shares on commsec do the two lots join together or are they two separate things?
Click to expand...


I think the selling part has been explained.

When buying, if you buy $500 worth of stock and the trade is executed, then yes you pay again when you top up.

Yes, 0.006 is just over 1 half of a cent.
 
Hi, I just sold my fist shares using commsec and hoping someone can help me here..

I sold and got an invoice for the net proceeds of $738.05

But looking at my settlements due, it shows i'm to be credited with $158.10

What happened to the other $579.95?
 
Commsec use sale proceeds to offset new purchases - have you bought any shares in the last couple of days? Perhaps $560 worth, plus $19.95 brokerage?
 
oh, durr freddy..

sorry I worked it out, I ordered other shares earlier today valued at $597.95 so instead of them doing that T2 thing, they just gave me the difference.
 
whinfell said:
Commsec use sale proceeds to offset new purchases - have you bought any shares in the last couple of days? Perhaps $560 worth, plus $19.95 brokerage?
Click to expand...

Yep, your spot on, thanks.
 
Now that leads me to probably a real silly question, but since no moneys really changed hands in a way.

Say tomorrow morning before an expected ANN' comes out, I order $1 million shares @ 5c share.
lunch time the shares go to 10c a share so I sell.

Will commsec drop $1 million into my account just like that?

Without money changing hands?
 
miniroo said:
Now that leads me to probably a real silly question, but since no moneys really changed hands in a way.

Say tomorrow morning before an expected ANN' comes out, I order $1 million shares @ 5c share.
lunch time the shares go to 10c a share so I sell.

Will commsec drop $1 million into my account just like that?

Without money changing hands?
Click to expand...

Yes - after settlement you will have $1mil in your account.

However - within 2 days if you haven't sold then they will be trying to deduct $1mil from your account. Or if you have to sell and the price has gone down then you have to come up with the difference (in your example if the price drops to 4c share then you would have to front up with $200 000 within 48 hours).

This is a very dangerous game. I used to do it when settlement was T+3 because it gave about 2 trading sessions to sell. It meant you could trade with no money down. It was/is very high risk and you will get caught out eventually. However if you understand the risk you are taking and control it properly it can actually be quite a profitable way to trade with very little/no money up front.

malachii
 
miniroo said:
Will commsec drop $1 million into my account just like that?
Click to expand...

Ummmmm.....not quite:

https://www.commsec.com.au/support/frequently-asked-questions/507.html

CommSec, unlike other brokers provides you an automatic trading limit of $25,000 which is allocated to leading stocks. Within this limit, $7,500 can also be used for non-leading stock. The trading limit allows you to place orders up to these values without any deposit requirements. Funds will be payable by you on the morning of settlement, which is two (2) business days after your buy order has executed (T+2).

To increase your trading limits you need to place a deposit by any of the methods described below (click on option for more information). The amount of your deposit should be 50% of the amount by which your trade exceeds your trading limit. For example, if you wish to buy $10,000 of non-leading stock, this is $2,500 above your automatic trading limit for non-leading stock, so a deposit of $1,250 will be required.
Click to expand...

They can consider money in your CDIA a deposit, or shares you already own as a deposit (ie. they will take your shares if you don't cough up the money) or you deposit cash
 
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