$0 for First Aussie Share Buy Trade, Each Trade Day, up to $1000, with CMC Markets. Start 16/2/2022. All other trades are at usual brokerage rates starting at $11.
Saw this on reddit so thought I would share with ozbargain community.
https://old.reddit.com/r/AusFinance/comments/see8u1/cmc_has_…
Looks like it’s only mentioned in the faqs so far. Didn’t see it anywhere else on website as yet.
Fair point. I’ve put some commas in. It’s still a bit of a mouthful though.
Had you started two weeks ago, assuming 90% leverage, you would now be broke and homeless.
Who says I'm not?
Stake $3 per trade is still better value IMO
Not if you don't intend to sell for a while. This would be better value.
The savings from $0 buy over time will be more than $3 vs $11 when you sell. The $1000 daily limit doesn't affect me as prices today vs tomorrow don't matter in the long run, I'm ok to spread buying over multiple days.
Afaik both for CHESS as well, so it's really down to interface.
Agreed. Dollar cost average with CMC and long term sells can be transferred to Stake to be sold for $3 (if you can be bothered saving $8) 😁
Stake also don't offer joint accounts, while it looks like CMC does.
Looks like it’s only mentioned in the faqs so far. Didn’t see it anywhere else on website as yet.
It's on their pricing page now: https://www.cmcmarkets.com/en-au/stockbroking/brokerage-rate…
Noticed that too.
Pretty good deal - i just moved over to take at i got over being ripped off $11 a trade (i still have my US stocks with CMC)
This is a good deal if you just buy small positions of ETFs every month or so as long as you dont intend to sell anytime soon.
CMC is a good platform i used it for a long time only switched to Stake becuz it was just so much cheaper
if you ask me $11 or 0.011% depending on order size is not terrible but simply put Stake is much better if anything probably work using the 1k free daily and transferring you shares to stake when you are ready to sell as they are both Chess
How does CMC (and brokers in general) make money if they aren't charging for brokerage?
It just seems too good to be true for my situation (wanting to DCA in $500-$1000 each payday)
Think they will make money when you sell. Just like Superhero went in with zero trading costs on ETFs then had to charge $5 to sell, then $5 to transfer within 12 months.
Nothing comes for free but the Australian market does stop them from making money on order flow (read up on how Robinhood makes money).
I think they all assume you would pay for other services.
Opentrader eliminated their $5 tier ($5k or less) and went to flat $10. Just like Selfwealth isn't moving from their $9.95. Selfwealth last financial year had $18.4m of revenue and made free cash flow of $1.1m (not even profit).
Lesson: dont invest in brokerage companies. Its a low margin race to the bottom. Airlines, stockbrokers, child care centres.
Caveats with CMC:
CMC charges on the sell for $11.00 or 0.10%
12-Months of no trading earns you a monthly inactivity fee.
Alternative option:
If you only buy ASX ETFs then use Superhero and Stake. Buy via Superhero first, hold >12months then transfer to Stake and hold under Chess.
If you need to buy US stocks - then Superhero and Stake are the same with 70bps and nil brokerage.
Tiger may be an alternative option at 35bps - after the three month honeymoon period of no fees for US/AUS trading - then AU reverts to $5/order and US trading fees revert to
0.0099 USD/Share and;
a. Commission USD 0.0049 / Share (Min. USD 0.99 / Order)
b. Platform Fee USD 0.005 / Share (Min. USD 1 / Order)
Source URL: https://www.tigerbrokers.com.au/commissions/fees/stocks_etf
The inactivity fee at CMC only applies to CFD accounts, not for share trading accounts.
On another unrelated note: Not sure how they would feel about a regular churn (transfer) of these small buys across to another CHESS broker. Can't see anything in the T&Cs precluding it, but I'd probably do it just once a year so it isn't regarded as an "abuse of service" or similar.
Are there any referral code for new accounts?
Keen to get more info on this as well. Had a look and can see referral's for other markets e.g. US and NZ, but nothing for AU
I could not find any fees if you wanted to transfer out, maybe after a year?
It is chess sponsored so can just transfer to new broker
Just a hint: Turn off confirmation letter to postal mail otherwise you'll be charged $3.50 per trade.
Also does anyone know how to get faster deposit times? I'm with ANZ with CMC which doesn't appear to support Osko. I asked the sending bank and they said to contact ANZ which I'm still to do so.
Could you tell me where this option is? I can't find anything about postal trade confirmation anywhere.
Click Accounts|Account Information and it's listed under "confirmations sent to:". Make sure only emails are listed (use the red bin icon to delete) and not any postal addresses.
@Danam
Hey, thanks for that. I went through every tab but couldn't find 'confirmations sent to'. I downloaded the app thinking you must be seeing something I don't, but no luck there either. There was one more step for me.
For anyone else playing along, it's under Accounts > Account Information > 'Click on your account number' > Confirmations Sent To:
Super secret menu.
Hey @brisdaz did you find a way to get faster deposits times. It’s been really painful for me too!
Nope. Let me know if you find out how!
@sjp1808 So apparently everyone except those who transitioned from ANZ E*Trade now have access to NPP Fast Transfer or Osko for near instant payment.
Could anyone who has transitioned please contact CMC to ask when it will be available? It's been a month since I asked on r/fiaustralia
Anyone know how long to get account approved? Signed up three days ago besides replying to some yes/no questions haven't heard back…
My initial account setup happened straight away, however transferring my HIN and all holdings from SelfWealth took 35 days. Zero communication from them during this process.
It took a month to get my account up and running, I went with stake instead.
I almost went that way too. I just really like the idea of $0 brokerage for frequent small trades. SelfWealth was a much slicker operation, but $9.50 a pop means little trades were a bad idea.
So far the good with CMC:
- $0 brokerage will add up over time and encourage dollar cost averaging.
- Really nice charts.
The bad:
- Very clumsy website. I just bookmark the pages I need because they are so buried.
- An endless array of financial products I wish I could hide.
- Very average portfolio view. But Sharesight is always the best for that anyway.
- Sharesight API connection was very clumsy. Not sure it's working properly yet.
- 1 business day cash transfers is a joke.
- 'At Market Rate' purchases are 3 steps above the best offered price instead of 'best price available'. Minor annoyance, but weird and off-putting. Limit orders it is.
- Zero communication from them during the setup. Zero. And no way to know if anything was ever going to happen.
@Danam: One of the reasons I went with stake is they have a promo if you transfer your existing portfolio (>$1000) you get 12 months free brokerage. I might go back to CMC once this promo ends though.
@umoddbro: Didn't know about that free brokerage.
I just got an email from the ASX saying CMC has changed my dividend payment details from my normal bank account to my CMC cash trading account. Looks like that was applied to all my holdings. Fun. Just an FYI should anyone not want that to happen.
Some punctuations on the first sentence would go a long way. Could barely understand a word