Online Share Trading Accounts That Don't Require Cleared Funds before Accepting a Buy Order

LClaire Naps on 02/02/2018 - 12:55

For many years I have had an online trading account with Commsec and have been pretty happy with them.

I started comparing brokerage fees for both share trades and options and was about to open an account with Bell Direct because based on my trading habits (buy/sell parcels of shares worth $20-30K) I could save about $5 in brokerage per trade. However, it appears that you cannot enter a buy order for shares unless you already have cleared funds in your associated settlement account. At Commsec cleared funds is not a pre-requisite to placing a buy order - you just have to have the funds available on the settlement date i.e. T+2. I often have 2-3 buy orders pending at prices a fair bit below market price but I can't have $60K sitting in a settlement account waiting for trades to execute. Can anyone advise on which brokers operate similar to Commsec and don't require pre-cleared funds, particularly any brokers whose brokerage fees compare to Bell Direct?

Also in the past it appears that Bell Direct offered credit to its customers for referring a new customer. The existing and new customers got $100 each. If this offer is still available and you are an existing Bell customer, please let me know.

Financial

Comments

  • Seraphin7 on 02/02/2018 - 13:37

    Seems a lot of hassle to save $5 on a $25k trade … are your trading margins really that thin?

    • Claire Naps on 02/02/2018 - 13:44

      I trade about 10 times a month which adds up to a potential saving of $600/year.

  • abb on 02/02/2018 - 13:42
    +1

    AFAIK CommSec is the only one that lets you buy first & pay later.

    • bobbified on 02/02/2018 - 14:20

      What happens when if it comes to settlement day and the funds are not in your account?

      • Claire Naps on 02/02/2018 - 15:00
        +1

        There's a daily charge of $100 (I think) until its settled. If they can't contact the buyer they'll sell the stock.

        • bobbified on 02/02/2018 - 15:11

          Thanks for the reply. That's quite a hefty fee! …unless you trade a million bucks and turn it into five million! lol

  • chumlee on 02/02/2018 - 14:44
    +1

    If $5 makes a difference to your trading then you are not doing it well. Even a monkey can double his money in todays irrational exuberant market

    • Claire Naps on 02/02/2018 - 14:56
      +1

      I am doing rather nicely on my trading thank you however the actual capital gains I am making are not relevant to my question. If there is an opportunity to pay $25 brokerage on a trade instead of $30 then I will take it. For me it would add up to a saving of about $600pa. This is ozbargain is it not?

  • mskeggs on 02/02/2018 - 14:59
    +1

    Westpac allows this. They even once called me when I forgot to transfer money into the account on T+2, which was surprisingly good service.
    They also have free real time quotes.
    BUT, brokerage is $20 or 0.11%, so unlikely to suit your purposes.

    • Claire Naps on 02/02/2018 - 15:04

      Thanks yes I checked westpac. They allow $10K credit plus whatever your share portfolio is worth but the brokerage is on par with commsec so no savings to be made by going to them. It looks like you pay a small premium to commsec/westpac for the flexibility they offer.

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