Do you want to start your investing journey with just 50 AUD? If your answer is yes, then you might want to try Commsec Pocket. It is an Australian app for new and retail investors.
This app can help you diversify your investment and reach your long-term financial goals. But it would be best to prepare some knowledge about this app before using it. In this CommSec Pocket review, we will discuss its pros & cons, trading fees, and whether it is worth installing and using for your investing journey.
- Commsec Pocket is a micro-investing app that can help you invest in ETFs for just 50 AUD.
- It is a product of the Commonwealth Bank of Australia (CBA), designed to make the investing process more affordable for beginners.
- The app supports only 10 ETFs with a fee of 2 AUD or 0.2%, depending on the amount of trade.
Table of Contents
CommSec Pocket Review: What is CommSec Pocket?
CommSec Pocket is a micro-investing platform that lets you invest as little as 50 AUD in 10 different themes, such as technology, health, or the biggest 200 companies in the Aussies market.
These themes are based on exchange-traded funds (ETFs), which are collections of companies and assets that trade on the stock market. The most notable advantage of ETFs is that they give you more diversity than buying shares in one company.
CommSec Pocket is easy to use, low-cost, and connected to NetBank and the CommBank app. You can also set up regular investments and learn more about the share market with its educational resources. It also gives you a signup bonus of $0 brokerage fees on your first 10 trades.
Pros of CommSec Pocket
- You can invest as little as 50 AUD and build your portfolio gradually.
- Diversify your investment with 10 different niche markets.
- Easily access your account and trade anytime with the CommBank app or NetBank.
- CommSec Pocket allows you to set up regular investments to automate your savings and benefit from dollar cost averaging (DCA).
Cons of CommSec Pocket
- You may pay higher fees if you trade more than 1,000 AUD per transaction, as the fee is 0.2% of the trade value.
- It is a pocket-friendly app, so you will not see advanced charting tools, research reports, margin lending, etc.
- It has yet to offer crypto or Bitcoin ETFs.
CommSec Pocket ETFs List
- Aussie Sustainability: This theme lets you invest in 100+ Australian firms that have high environmental output for society in reducing carbon emissions, supporting diversity, human rights, and more.
- Aussie Corporate Bonds: This ETF helps you diversify your portfolio with around 50 Australian corporate bonds. Bonds are less risky than shares, but their bond yield is also good enough for your investments.
- Aussie Top 200: It gives you a low-cost way to invest in the top 200 firms on the Australian Stock Exchange (ASX), including blue chip stocks. You can enjoy the growth and performance of some of the most successful businesses in Australia.
- Aussie Dividends: The ETF allows you to invest in 30+ companies that pay the highest dividends. Dividends are income that companies share with their shareholders from their annual profits.
- Diversified Equities: It offers a simple way to invest in 8,000+ companies from over 60 global markets. You can access various industries and regions worldwide and reduce dependence on any single country or area.
- Global 100: This theme allows you to invest in the 100 most well-known businesses across various sectors, such as tech, consumer goods, health care, and more.
- Emerging Markets: This EFT helps you diversify your portfolio across 800+ companies from fast-growing economies like China, Taiwan, Korea, India, and more. You can gain exposure to sectors such as tech, AI, financials, consumer discretionary, and more.
- Health Wise: This theme lets you invest in medical innovation with 100+ companies that are working to improve our health and well-being. By this, you can support the research and development of new solutions for various health challenges and needs.
- Sustainability Leaders: This ETF lets you invest in 200+ companies screened to avoid negative environmental, social, or governance impacts. You can invest in businesses aligned with your beliefs, such as renewable energy, social justice, human rights, etc.
- Tech Savvy: You can join the tech revolution with exposure to 100+ of the biggest tech innovators and non-financial companies on the NASDAQ. You can invest in some of the most exciting and cutting-edge technologies and trends, such as AI, cloud computing, e-commerce, biotech, and more.
Related Article: Best Bitcoin ETFs to Invest
What is the best CommSec Pocket ETF?
In our opinion, the “Diversified Equities” is the best CommSec Pocket ETF. We believe the more diversified an ETF is, the better your investments. The “Diversified Equities” ETF exposes you to 8,000+ shares from over 60 countries, so this may take you away from the volatility of specific sectors in the market and still achieve the overall gain for your portfolio.
Diversifying portfolios can also explain why investment management firms typically gain better growth rates (in the long term) compared to retail investors. This is because they have more chances to diversify their investment portfolio.
CommSec Pocket Fees
Here are the main CommSec Pocket Fees you need to know about when using CommSec Pocket:
- Trading fee: This is the money you pay each time you buy or sell an ETF on the app. CommSec Pocket keeps it simple: 2 AUD for trades up to 1,000 AUD. They take 0.2% of the trade amount if your trading volume exceeds 1,000 AUD. For example, if you invest 500 AUD in an ETF, the trading fee is 2 AUD. If you invest around 2,000 AUD, your trading fee is 4 AUD.
- Late payment fee: If you don’t have enough funds in your bank account or CDIA account(Commonwealth Direct Investment Account) to cover your trade within two business days, there’s a 10 AUD fee.
- Account fee: They don’t charge any account fees. But if you use a CDIA account to pay for your trades, CommBank might charge you 5 AUD monthly if your balance falls below 10,000 AUD or you don’t meet the CommSec Pocket’s requirements.
- Management fee: This is like a fee for someone taking care of your investment. CommSec Pocket doesn’t charge you directly for this, but the people who manage the ETF you invest in do. The fee depends on the ETF you pick and ranges from 0.09% to 0.67% each year. So, if you put 1,000 AUD in an ETF with a 0.5% yearly management fee, you’ll pay 5 AUD yearly.
How to Buy Shares on Commsec Pocket?
- Create a CommSec Pocket account: If you are not a CommBank customer, you will need to open a CommBank transaction account online. You will get a NetBank ID, which you can use to sign up via the app.
- Connect a bank account to your CommSec Pocket: You can use your CommBank Direct Investment Account (CDIA). This is where your money will come from and go when you buy and sell ETFs.
- Pick the ETFs you want to buy: Choose among 10 investment themes, such as tech, health, sustainability leaders, or the top 200 companies in the Australian market. Each option represents an ETF that follows a group of companies and assets related to that theme. You can invest in one or more options depending on your preferences and goals.
- Choose the amount you want to invest: Start with as little as AUD 50, and invest more whenever possible. You can also set up automatic investments fortnightly or monthly and gradually grow your portfolio.
- Confirm your investment: You will see the number of units you can buy with your chosen amount and the brokerage fee you will pay for each trade.
- Track your portfolio performance: View your CommSec Pocket portfolio via NetBank or the CommBank app and see how your investments are doing over time.
CommSec vs CommSec Pocket
|Simple micro-investing app
|Online platform to trade many Aussie and international shares and more
|Minimum Investment (AUD)
|Who is it for?
|Beginners or casual investors who want to start small and learn
|Experienced or active investors who invest more
|Shares, ETFs, options, warrants, fixed income securities, margin loans, etc.
|$2 for trades up to $1,000 and 0.2% for trades over $1,000
|$5 for trades up to $1,000$10 for trades from $1,000-$3000
CommSec is for experienced investors who want to buy and sell stocks, ETFs, bonds, and more from different markets. It costs a bit more to trade on CommSec, especially if you’re not investing much money. But the fees go down a lot if you’re a high-volume investor.
Otherwise, CommSec Pocket is designed for beginners. It only lets you pick from 10 different ETFs (like investing bundles). It’s great for new users who are just starting and don’t have much money to invest.
The biggest downside for CommSec Pocket is that they offer few ETFs. Also, both of these platforms are regulated, so your money and investments are safe.
Alternatives to Consider: CommSec Pocket vs Raiz vs SpaceShip
|Portfolios of ETFs, custom portfolios, and Bitcoin
|$2 or 0.2% for above $1000 investment
|$4.50/mo For Accounts Under $20k0.275%/yr For Accounts $20k+
|$2 / month for any balance over $100
Related Article: Best Crypto Platforms in Australia
Conclusion: Is CommSec Pocket Safe?
To summarise the CommSec Pocket review article, CommSec Pocket is a great investment app for retail investors, starting with just AUD 50. It is also safe because it is part of the Commonwealth Bank of Australia, one of Australia’s biggest and most reliable banks.
It also has straight fees of 2 AUD or 0.2% and no monthly charges. However, the minimum investment amount of 50 AUD is comparatively high compared to others like Raiz, where you can start investing with only 5 AUD.
Also, Investing in the stock market is not risk-free, and you should always do your homework before you invest.
1. Is CommSec Pocket good for investing?
CommSec Pocket is good for investing, especially if you want to start investing in the share market with a low budget and a simple app. CommSec Pocket might be a good option for you.
It lets you buy and sell themed ETFs that cover different sectors, regions, or countries. You only need AUD 50 to start, and you pay 2 AUD per trade up to 1,000 AUD. CommSec Pocket also gives valuable tips and articles to learn more about investing.
2. Who owns CommSec Pocket?
CommSec Pocket is owned by Commonwealth Securities Limited (CommSec), which is part of the Commonwealth Bank of Australia (CBA).
3. What are the disadvantages of CommSec Pocket?
CommSec Pocket has some disadvantages that you should be aware of before investing. First, you have a limited choice of ETFs and cannot invest in other ETFs or individual shares that may suit your needs better.
Secondly, you may face currency risk if you invest in ETFs that are in foreign currencies or have exposure to foreign assets, as the exchange rate movements may change the value of your money in Australian dollars (AUD).
It also has a high minimum investment compared to other micro-investing apps like Raiz and SpaceShip.
4. Is CommSec Pocket available outside of Australia?
No, CommSec Pocket is only for Australian residents with an Australian bank account and a Tax File Number (TFN). You must also be 18 years or older and have a NetBank ID or a CommSec ID to use CommSec Pocket.
5. Does CommSec Pocket have dividends?
Yes, CommSec Pocket pays dividends on your investment. With CommSec Pocket, you can use the Dividend Direction Service to get your dividends straight to your account instead of waiting for a cheque. However, not all ETFs or share registries will pay you electronically.