The Commonwealth Bank of Australia has made waves with its micro-investing app, CommSec Pocket. Launched in mid-2019, this platform aims to simplify investing for beginners by offering lower minimum trades and competitive brokerage fees. In this review, we’ll delve into its features, user satisfaction ratings, and overall usability.
What is CommSec Pocket?
CommSec Pocket is a mobile-only investment app that focuses on exchange-traded funds (ETFs). It provides a straightforward entry point for new investors, allowing them to invest as little as $50 with brokerage fees starting at just $2. This makes it a strong contender in the micro-investing space, alongside platforms like Raiz and Spaceship.
Key Features
- Minimum Investment: Start investing with as little as $50.
- Low Brokerage Fees: Just $2 for trades under $1,000, or 0.2% for larger investments.
- ETF Options: Choose from 10 different investment themes.
- Automatic and One-Off Investments: Set up recurring investments or make one-time trades.
User Ratings
According to Finder’s 2024 Customer Satisfaction Awards, CommSec Pocket boasts impressive ratings:
- Overall Customer Satisfaction: 4.08/5 (above the average of 3.95)
- Trust Rating: 4.66/5 (the highest score in this category)
- Customer Service Rating: 4.02/5 (above the average of 3.93)
How Does It Work?
Unlike traditional share trading platforms, CommSec Pocket offers a simplified list of ETFs, allowing users to invest in a bundle of stocks rather than individual shares. This approach makes investing more accessible and less intimidating for newcomers.
Available ETFs
CommSec Pocket provides a curated selection of 10 ETFs, including:
- Aussie Top 200: iShares Core S&P/ASX 200 ETF (IOZ)
- Global 100: iShares Global 100 ETF (IOO)
- Emerging Markets: iShares MSCI Emerging Markets ETF (IEM)
- Aussie Dividends: SPDR MSCI Australia Select High Dividend Yield Fund (SYI)
- Tech Savvy: BetaShares NASDAQ 100 ETF (NDQ)
- Sustainability Leaders: BetaShares Global Sustainability Leaders ETF (ETHI)
Users can easily track ETF performance, management fees, and more, providing a transparent investing experience.
Pros and Cons
Pros
- User-Friendly Interface: Intuitive design that makes navigation easy.
- Clear Investment Information: Transparency regarding fees and performance.
- Encourages Small Investments: Low minimum investment amount promotes saving.
Cons
- Higher Fees on Small Trades: A $2 fee on a $50 investment translates to a 4% trading fee.
- Limited Investment Options: Only 10 ETFs available may not satisfy all investors.
- Potential for Accidental Fees: Insufficient funds can lead to a $10 late settlement fee.
Final Verdict
CommSec Pocket offers an accessible entry point for new investors looking to dip their toes into the share market. Its user-friendly design and low brokerage fees make it appealing. However, the limited number of investment options and potential high fees on small trades are worth considering.
Should You Use CommSec Pocket?
If you’re a beginner interested in micro-investing with ETFs, CommSec Pocket is a solid choice. While it may not have as many options as other platforms, its simplicity and low barrier to entry can help you start building wealth. Be sure to evaluate how often you plan to invest and consider the associated fees to maximize your returns.
Disclaimer: This article is not an endorsement of any specific investment products or services. Trading in stocks, ETFs, and options involves risk. Always consider your circumstances and seek professional advice before making investment decisions.