Commonwealth Securities
Encyclopedia
Commonwealth Securities, also known as CommSec or ComSec, is Australia's largest discount stockbroking firm operated by the Commonwealth Bank of Australia
, one of Australia's top four bank
s.
The subsidiary has been highly successful as a discount broker by attracting many so called "mums and dads" (retail) investors. It offers a telephone based brokerage service and advisory service, though its Internet trading platform constitutes the vast majority of its business.
CommSec initially offered only Australian equities
trades, but has since expanded into derivative products
, international equities, managed funds
, Self Managed Super Fund administration, Contracts-For-Difference
(CFDs), margin lending
and Short-term deposits. The firm's large retail customer base has also allowed it to successfully market a number of initial public offering
(IPO) fund raisings.
In 2008 CommSec became the first Australian brokerage firm to offer a brokerage website specifically designed for a portable-device. It created CommSec iPhone Edition for the Apple iPhone
, the first home-grown iPhone application in Australia.
CommSec's frequent equities, CFDs and options traders use the realtime trading platform CommSecIRESS. It is a web-based solution, developed by IRESS Market Technology
and based on the Java
runtime environment. This platform combines the majority of the features of the website, while adding more advanced features and streaming live data from the Australian Securities Exchange
.
CommSec also offers phone-based trading through its call-centre, advisory service and the automated voice recognition platform PhoneTrader (formerly Voice Broker).
In 2008 the broker disbanded its Share Shops (face-to-face operations) closing the front in the Commonwealth Bank branch in Pitt St, Sydney, following the earlier closure of the Melbourne Share Shop on Collins St.
. The CIA is designed as a high interest cash deposit distinguished by its lack of tiers and that cash can only be transferred to and from the CCA.
Commonwealth Bank of Australia
The Commonwealth Bank of Australia is a multinational bank with businesses across New Zealand, Fiji, Asia, USA and the United Kingdom. Commonwealth Bank provides a variety of financial services including retail, business and institutional banking, funds management, superannuation, insurance,...
, one of Australia's top four bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s.
The subsidiary has been highly successful as a discount broker by attracting many so called "mums and dads" (retail) investors. It offers a telephone based brokerage service and advisory service, though its Internet trading platform constitutes the vast majority of its business.
History
The brokerage arm started operations in 1995 and launched its share trading website in 1997.CommSec initially offered only Australian equities
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
trades, but has since expanded into derivative products
Derivative (finance)
A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...
, international equities, managed funds
Active management
Active management refers to a portfolio management strategy where the manager makes specific investments with the goal of outperforming an investment benchmark index...
, Self Managed Super Fund administration, Contracts-For-Difference
Contract for difference
In finance, a contract for difference is a contract between two parties, typically described as "buyer" and "seller", stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at contract time...
(CFDs), margin lending
Margin (finance)
In finance, a margin is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their counterparty...
and Short-term deposits. The firm's large retail customer base has also allowed it to successfully market a number of initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
(IPO) fund raisings.
In 2008 CommSec became the first Australian brokerage firm to offer a brokerage website specifically designed for a portable-device. It created CommSec iPhone Edition for the Apple iPhone
IPhone
The iPhone is a line of Internet and multimedia-enabled smartphones marketed by Apple Inc. The first iPhone was unveiled by Steve Jobs, then CEO of Apple, on January 9, 2007, and released on June 29, 2007...
, the first home-grown iPhone application in Australia.
Services
CommSec's primary channel for customers is its website. The website provides static information that can be refreshed for updates on the frequently changing markets. It offers a comprehensive suite of features including trades, watchlists, funds management, portfolios, holdings management, financial & contract details, cash management, chatrooms and news & research.CommSec's frequent equities, CFDs and options traders use the realtime trading platform CommSecIRESS. It is a web-based solution, developed by IRESS Market Technology
IRESS
IRESS Market Technology is an Australian software company specialising in the development of software systems and services for financial markets and wealth management.The company provides services to stockbrokers, financial institutions and research analysts...
and based on the Java
Java (programming language)
Java is a programming language originally developed by James Gosling at Sun Microsystems and released in 1995 as a core component of Sun Microsystems' Java platform. The language derives much of its syntax from C and C++ but has a simpler object model and fewer low-level facilities...
runtime environment. This platform combines the majority of the features of the website, while adding more advanced features and streaming live data from the Australian Securities Exchange
Australian Securities Exchange
The Australian Securities Exchange was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia....
.
CommSec also offers phone-based trading through its call-centre, advisory service and the automated voice recognition platform PhoneTrader (formerly Voice Broker).
In 2008 the broker disbanded its Share Shops (face-to-face operations) closing the front in the Commonwealth Bank branch in Pitt St, Sydney, following the earlier closure of the Melbourne Share Shop on Collins St.
Mergers and Acquisitions
CommSec has retained and increased its significant marketshare in retail broking through both CBA's acquisition of other banks and its own acquisition of other broking firms. CommSec now performs broking operations for Colonial First State, TD Waterhouse, AOT, Neville Ward Direct, Auckland Savings Bank (ASB), and IWL (Westpac Broking, Sanford and Avcol). The addition of IWL gave CommSec significant market share in wholesale broking to compliment its existing retail presence.Cash Management
In 2008 CommSec diversified into the short term deposit sector with the introduction of its Cash Management product. The product consists of two distinct accounts the CommSec Cash Account (CCA) and the CommSec Investment Account (CIA). The CCA is designed to both be the source of funds for stock trading and also an everyday transaction account, with a linked debit MasterCardMasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
. The CIA is designed as a high interest cash deposit distinguished by its lack of tiers and that cash can only be transferred to and from the CCA.