Summary: CommSec is the better platform for advanced investors looking to buy and sell Stocks, ETFs, Bonds, Commodities and more. It is a full-service brokerage available to retail, institutional and corporate investors in Australia.
CommSec Pocket only offers 7 different ETFs for micro-investing and is designed for beginner investors only.
What is CommSec and CommSec Pocket?
CommSec is a trading platform and brokerage service provided by the Commonwealth Bank of Australia. It allows individuals and businesses to buy and sell a range of financial products, including shares, exchange-traded funds (ETFs), and managed funds, as well as access a range of tools and services to help manage their investments. It is available on Web & iOS/Android.
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CommSec Pocket is a mobile app developed by the Commonwealth Bank of Australia for beginners that allows them to invest in up to 7 different ETFs. The app is popular because it allows investors to get started with as little as $50 and build their portfolio over time with automated dollar cost averaging.
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Trading Fees Compared
CommSec has significantly higher fees than CommSec Pocket. Even though the fees seem to drop to 0.12% with an investment above $25,000, it isn’t really lower as it never drops below the fees at $25,000 or less. CommSec Pocket’s 0.2% for an investment of more that $1,000 is much less than what is obtainable on CommSec.
Winner: CommSec Pocket. It is the more cost effective options for those investing small amounts.
Minimum investment on CommSec and CommSec Pocket
CommSec sets its minimum investment at $500, meaning investors with less cannot use it. CommSec Pocket on the other hand allows anyone with as little as $50 to invest in stocks. It is therefore more inclusive and so more people can access stocks though it. The CommSec Pocket app has well over 1 million downloads now.
Winner: CommSec Pocket. Investors with smaller amounts can still invest in stocks.
Available ETFs
CommSec provides investors access to all ETFs listed on the Australian Stock Exchange (ASX). As at March 2020, there were 200 ETFs on ASX, which means there are currently at least 200 ETFs available to CommSec customers. There are only 7 ETFs on CommSec Pocket, which gives investors fewer options.
Winner: CommSec. Investors have many more options compared to CommSec Pocket.
Supported Devices
CommSec is supported on desktop and mobile devices. This also gives investors more options to use depending on their circumstances. CommSec being an app naturally can only be used on a mobile device.
Winner: CommSec. Customers can use computers or mobile devices depending on convenience.
Final Thoughts
Overall, CommSec is the better platform for advanced investors looking to buy and sell Stocks, ETFs, Bonds, Commodities and more. While it has higher trading fees compared to CommSec Pocket, these fees drop significantly with large scale investments.
CommSec Pocket only offers 7 different ETFs for micro-investing and is designed for beginner investors only. Its low minimum investment makes stocks investing available to more people, although it is still limited in terms of the number of ETFs they can invest in. Both services are regulated, meaning investors’ funds and investments are safe with both platforms.
Therefore, if you are a beginner investor looking to test the waters or put in small amounts, CommSec Pocket is the better option for you. If you are a large-scale investor with more money to invest, then CommSec is likely to be the better choice.
Dylan Matthews is the Co-Founder and head of operations at Buy Bitcoin Bank, with a background in engineering and experience as a Prop Trader. He has leveraged his knowledge and skills to build and scale the platform, providing users with a seamless experience for buying and selling cryptocurrency.
