Saw this deal and remembered that I came across Open Trader which is cheaper if your trades are $2500 or less.
- UP TO $2,500 - $5.00
- $2,500 to $15,000 trade - $15.00
- over $15,000 trade - 0.10% of value
Open Trader $5 Per Trade (under $2500) ASX CHESS Sponsored
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what do you need? If you dont like the platform just use it to execute the trade and use the platform you like for research etc…
$5 is damn cheap if you trade in small amounts (which you really shouldn't do IMHO)
People trading small amounts helps ASX liquidity and it's more productive than just sticking it in yet more sticks and bricks, so I don't know why you'd be discouraging it when someone finally makes it available at a decent price that makes it viable for small amounts.
I mean it'd be great if we had US-style $0 brokerage and just a few cents in exchange fees, but this is Australia, so that ain't happening.
cloudy ultimately knows what he meant. But he may just have been suggesting that small trades are unadvisable because the fee then becomes a significant fraction of the trade. If you purchase $1001 of shares in CommSec you could be paying 2% on the way in and way out. So you need the stock price to increase 4% to make any capital gain.
@markathome: If the brokerage fee is low this impact becomes lower which is the purpose of this deal. $5 fee on $2500 trade = 0.2% which is lower than CommSec for trades below $10,000.
i.e. Unless someone's doing >$10k trades on CommSec, otherwise he's essentially paying a higher fraction of fee than these $2.5k trades.
Cost measured as a percentage of capital is the most important figure, on that note small investors are at a major disadvantage.
even at $5, the frictional cost of buying and selling shares means an average investor needs to perform at high level to outperform on a risk adjusted basis. (unless you use this just to buy and hold an ETF )
Lets say you buy 3 shares(A, B and C) at $2500 each (trying to lower the % of friction as much as possible.
A: goes up 10%
B: stays the same
C: goes down 10%you're P/L is
A: $250
B:0
C:$250
Total nilYou're brokerage is:
A:$5+$15
B:$5+5
C:$5+5
Total: $40.So this investor needs to earn almost 6/10th of a percent just to tread water.
That's no small bar to climb over, and thats with a discount broker like this. Imagine you're usual other brokers, it'll be ticking towards 1%.
i'm just saying, from someone who knows how the industry of finance works, skimming small fractions off a large pool of money is how they make their money, and those percentiles i point out are hard to beat.
That all assumes someone trades, if you buy and hold it's all pretty meaningless in the end, but my anecdotal experience is people who investing with these amounts churn thru their portfolio fairly quickly.
If people trade with a gambling strategy see some comments in https://www.ozbargain.com.au/node/557024
Not saying play safe is “better”, depends on what someone is prepared to lose when things head south.
Then there’s the idiots who don’t have the money so take out a loan to buy shares 100% claiming it’s bulletproof and then COVID happens.
Well, they're the CHESS participant that settles SelfWealth and Raiz trades, so there's that…
I noticed these discount providers don't provide live market data including price and depth of market (CommSec does provide live data). Trying to work out how big of an issue that is. Someone suggested you have a CommSec account for analysis and then use these providers to actually execute the trades.
You may not realise it, but OpenTrader actually does provide Live Data - so if that is the only thing holding you to CommSec while you execute through OpenTrader you may as well make the full switch!
Is it the case there's a subscription required for that though? Albeit with the first two months free? From the website:
Get 2 months pro platform for FREE, including streaming live data and ASX news valued at $198.
@markathome: At the moment live data is provided through both the free/live account and the trail account for our pro offering, without charge.
website: pay $9/month to continue live data
Hi OpenTrader,
I have opened account but the open account but the Open Account option is still available and it lets me apply everything again. So It's not sure if my account is opened or not as there is no communication without the initial email and website doesn't show of there is an account in progress etc
You should disable the Open Account Link once the account is opened.
This is why I love OzB!
I guess they don't have quality mobile app. Great deal if you are not dependent on mobile app.
Trade on the Go
Using the latest in technology, we bring you the same experience you had on the desktop to the mobile phone and tablet. Push notifications for filled trades, price & technical analysis alerts and triggered stop losses. Plus you get the full charting platform and seamlessly integrated.Could you post the link of the app on the play store/Apple app store?
No app yet but is on the way, presume that's talking about a mobile website: https://www.reddit.com/r/ausstocks/comments/gwte7b/does_anyo…
you know sooner or later, ASX trades will be free
maybe if Robinhood comes
Joshy of Loxley
Robinhood has no interest in ASX, cause the Australian Stock Exchange has no liquidity.
Robinhood announce long…long time ago to enter Aus market.
They even advertise to join their waiting list.It is all forgotten now.
Who pays for the cost of ASX?
You should read up on how these free trade companies make money. Just like Facebook is free because you are the product.
It's unlikely as ASX has a monopoly and charge a percent on each $ put through as opposed to the US stocks which is a few cents to trade per share.
Anyone have any aussie stock tips? Just curious about what's hot
new IPO , ticker OZB
Price? $0.00 😂
don't forget cashreward/shopback
0.05 now
Putting calls now, somebody stop me!
Lol this is bad, because the stock will be stuck at 'bargain' prices (unless fuelled with enough Eneloops)
Almost the entire prospectus is dedicated to "Band 28", I'm not sure what that is, but my mate said it's worthwhile?
Any free tips, are worth the same price you got them. ;)
come to asx_bets @reddit where autists like myself lurk
Afterpay machine goes brrrrrr
🚀🚀🚀
Z1P to the moon 🚀🚀🚀
I’ve wondered whether an ASX ozbargain forum would be good. Seems like reddit has it covered already though.
Z1p 3xrocketship emoji
/s
Have you seen the ASX_Bets reddit page?
It's fun, but oh so dangerous.
Yes travel stocks.
DXB 🚀
DDD, get on it, hold for 2 months and easy 200% return
DXB should be up in the next couple weeks with the COVID stuffcould you explain what supposed to happen with DDD over next 2 months?
same with DXB over next couple weeks.DYOR.
FFF (Just been listed), Food sector, great potential, I hold since IPO a week ago. Will be in the same valuation as WOA and PFT soon I think. DYOR
Sezzle me this batman
$PFT - smoked salmon, pate. They selling real tangible goods. Not a dream and a bag when the smart money dumps on yo retail sheep.
DYOR
Any idea which bank they will hold your money?
If you want to open a trading account with OpenTrader, you’ll need to open one of the following linked cash accounts: Macquarie Bank Cash Management Account, CBA Cash Accelerator Account, Bankwest Cash Management Account or DDH Graham Money Market Deposit Account.
Oof that's quite a stipulation
I created an account this morning. They would only give me the option of a “Macquarie Cash Account”. From Macquarie’s website it seems like there’s no account keeping fees but not sure if they require a minimum balance.
From your current bank, you have to transfer money to MCA then to open trader.
Takes few days.
Stake used to be like this but they introduce other ways like using PoLi.
Wow, any reviews?
Is this as easy as NAB Trader?
dont sell urself short there
Isn’t nab trade the worst ? I stop using it after 3 trades and moved to commsec
They’re the best, only when they offer 3 months free trade or so, waiting for next offer :)
How do you keep reapplying for 3 months free trade? I thought if you're an existing customer, you couldn't.
The app sucks but I go through the web browser which is quite good.
How do you open account for minor. Which option do you select for minor as beneficiary.
Would the negger care to elaborate.
They do have mentioned account for under 18, it is just that I could not find it in the application form process when I went through.
I'm curious to know how this compares to Selfwealth
SWF is $9.5 per trade regardless of amount, so if you are trading bigger, then SWF for sure. If you are trading small under $2500, this is worth a look
Is buying using this platform then transferring the shares to your preferred broker a strategy anyone here implementing? IE transferring to Commsec to save apron 15 per trade between 1k-2.5k
Be careful, it can take a few weeks and you will lose on the share price appreciation and miss the best time to sell, so unless you are holding long, be careful of this approach
Then you transfer out when you want to sell it?
Good points, I plan to buy and hold for the long term so no issues with the selling component
edited.
$5 seems pretty good. I do max $2000 a trade, don't wanna commit too much, so far only comm pocket lets me go in in small chunks of money without costing an arm and a leg.
isn't OpenMarket same guys that deals with SW as well? I remember seeing that name somewhere in my account.
Yep basically SW uses Openmarkets to execute their trades (i.e. Selfwealth is a platform built on top of Openmarkets). If you trade less than $2k it's a no brainer imo.
Yeah, kind of like Belong (owned by Telstra) and Boost mobile (using Telstra network)
Can you use this platform (or any cheap one for that matter) to buy, then shift your shares into say commsec or nab later on, or would that cost you money?
Yes, you can. Execute trading (buy/sell) in Opentrader and and manage it on your other trading platform after transferring them.
The cost to transferring to CommSec or nabtrade will depend on the CommSec/nabtrade. Transfer to commsec/nabtrade request is executed from nabtrade/CommSec side.
So how the broker makes money?
Do you need to open a new bank account to use this? Are there any account keeping fees?
Through the application process you will be able to open your new linked Macquarie Cash Management Account - no monthly account keeping fees there!
We can only fund Open Trader using Macquarie CMA?
If you want to open a trading account with OpenTrader, you’ll need to open one of the following linked cash accounts: Macquarie Bank Cash Management Account, CBA Cash Accelerator Account, Bankwest Cash Management Account or DDH Graham Money Market Deposit Account.
I think I would prefer to stick to SelfWealth and paying $9.50 for any size of trade, while also having my fingers crossed that whenever I do go to trade, someone has picked up my referral code and given me another 5 free trades. By the way my referral code is…
You can still use this to buy and transfer to SW provided you trade in less than $2500.
Is there an app for this platform?
We are focusing on an app internally at the moment and this is at the top of the list for us, so hope to have this out soon for you!
I have no experiance with trading, is this a good place and price to start learning with small trades ?
Would highly recommend that you join us for our fortnightly webinar "Trading Tuesdays" where we run through a bit of everything on trading and utilising the platform - would be a great place to start: https://event.webinarjam.com/register/57/ryqoli8l
So if you spend $2,499 buying some shares and then the share price goes up then you will pay $15 brokerage to sell them. The cost advantage disappears.
Yeah you'd better buy 1500~2000 😅
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Any reviews on this vs commsec/selfwealth?