Commsec Pocket - Good Investment Option?

PTG Benny on 06/01/2022 - 08:20

Hi OZB Finance gurus.

I currently have a CommSec account where I have a portfolio of individual shares but I don't actively trade, mainly just have dividend shares with DRP activated where possible.

I noticed CommSec Pocket is a fairly new platform that charge $2 brokerage and the minimum spend is smaller to buy a range of ETF's.

I was thinking of purchasing $100 worth every fortnight and rotating the ETF each time (I think there are 6 in total) so I am dollar cost averaging every 12 weeks for example.

Would this be a relatively low risk, good option to accumulate shares over a period of time (assuming I can DRP these ETF's)

Thanks in advance

Regards

Ben

Financial

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Comments

  • Hearthstone on 06/01/2022 - 09:46
    +3

    Not really it a fairly expensive way to invest as the ETFs they offered on their platform has high MER fee and probably higher spread too
    with ETFs go for the cheapest provider, Betashares or Vanguard

    you better off sign up to Stake now they have CHESS and pay $3 brokerage, save $500 at a time, buy and pay $3 brokerage.
    also put it on DRP so each time you get dividend instead you get more ETFs brokerage free and it keep compounding

    don't buy small amount brokerage will eat most of your return, for my kids I get them to save 5K at a time then I get ETFs for them
    and I set them on DRP, each year it get bigger and bigger the magic of compounding

    • 87percent on 06/01/2022 - 11:01

      How often does a kid save $5k?!

      • Hearthstone on 06/01/2022 - 11:10

        every 6 months to a year when they have casual jobs, since they finished Uni and got full time jobs very 2 months or less
        one amass a very big holding in ETFs already and not even 25 and ready for a house deposit, I start them all once they reach legal age at 18 and I brain washed them into shares and properties and I have plenty of experience to teach them
        none are into crypto and I make sure they dont, just good old fashion properties and shares

        • PTG Benny on 22/04/2022 - 22:07

          I noticed that Commsec pocket charge 0.35% management fees. What would be an acceptable MGMT fee that you would be happy with?

    • Smaland on 24/02/2022 - 23:33

      Hi Hearthstone, do you mind share what are your favourite shares and ETFs? With compounding effect, do you mean we keep buying the same shares/ETFs? Thanks in advance

  • JIMB0 on 06/01/2022 - 09:46

    Best to put in $1000 at a time to minimise brokerage to 0.2%, putting in $100 is 2% brokerage. There are some goods funds on pocket but nothing all encompassing such as iwld or vgs.

  • naruto128 on 06/01/2022 - 11:15
    +1

    I have been trading with Stake since they started late last year and have no complaints over trade execution so far although the app can be better. Much cheaper than ComSec and while not cheaper than Superhero having my own CHESS account is comforting.

  • Trying2SaveABuck on 06/01/2022 - 11:52

    Stake is probably the best option for stocks at the moment

    But there isnt anything wrong with comsec pocket it is just limited to 7 etfs from what i understand - personally i'd never trade with any of the big banks again just use there platforms for research

    • Hearthstone on 06/01/2022 - 18:21

      nothing wrong with comsec pocket it just cost, it hit you on two fronts high brokerage cost and the ETFs they offered has higher MER comparable to similar ETFs offer by betashares and vanguard and the #1 rules of investment is you try to cut down as much cost as possible to enhance your return if you are buying the same product.

      • Trying2SaveABuck on 06/01/2022 - 19:14

        I dont disagree with you but there are a 'large' number of people who still invest with Comsec and prefer the platform which is the most expensive platform (or one of) to buy stocks. I made the assumption OP prefer to use comsec if he was interested in Comsec pocket

        As i said I use stake

  • Shadowsfury on 06/01/2022 - 11:54

    I'd aim to keep brokerage under 0.25% and not buy less than $1k at a time

    • PTG Benny on 06/01/2022 - 12:06

      If I buy $1000 at a time I would only pay $2 in brokerage, that would be better value. Is that right?

      • Hearthstone on 06/01/2022 - 18:23

        yes and why use commsec pocket when there are better alternatives for cheaper
        Stake is a good one, all my kids has commsec account but I move them all over to Stake as soon as they offer CHESS

        CHESS is an uncompromised position for myself and I make sure my kids understand that as well, if you are a broker and you are not CHESS I am not interested regardless of cost.

        I am with commsec however because cost is not really an issues for me because all my purchase are very large in nature and they offered me facility no other broker offer, like I can buy shares without money in the account and worry about it on settlement day and they let me use my stock as collateral for options play instead of cash margin that in itself would save me thousands each year

        • w37hsyea on 07/01/2022 - 17:03

          You can get them to use superhero as they may not have similar income to us, this allows them to make small etf trades at no brokerage, and transfer to stake if you want. Its zero cost to transfer and stake has made the process seamless.

  • w37hsyea on 06/01/2022 - 14:23

    I'm using Stake & Superhero.

    I would switch to Selfwealth if its ETF brokerage could match the above.

  • xdivino on 24/04/2022 - 17:47

    So discounting the other things like Stake and Superhero and other platforms..

    what's the general concensus on how best to use Pocket?
    $1k for $2 fee at a time?

    Also, for admin fee's these come out of the performance of the fund or paid seperate?

    • PTG Benny on 24/04/2022 - 20:44
      +1

      Good question, hopefully someone here can confirm about the management fees and how they are paid.

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