 | |
| Company type | Subsidiary |
|---|---|
| Industry | Financial services |
| Founded | 17 July 1995 |
| Headquarters | Sydney, Australia |
Area served |
|
Key people | James Fowle (Executive General Manager) |
| Products | CDIA CommSec Margin Loan CommSec Pocket |
| Parent | Commonwealth Bank |
| Website | www.commsec.com.au |
Commonwealth Securities Limited, orCommSec, is Australia's largest onlinestockbroking firm. It is a subsidiary of theCommonwealth Bank.
Though its Internet trading platform constitutes the vast majority of its business, it also offers a telephone based brokerage service, and investment advisory services.[1] In addition, CommSec also offers other peripherally related investment services, such as margin loan and cash accounts.
The brokerage arm started operations in 1995 and launched its share trading website in 1997.[2][3]
CommSec initially offered only Australianequities trades, but has since expanded intoderivative products, international equities,managed funds, self-managed super fund (SMSF) 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 ofinitial 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.[4] It created CommSec iPhone Edition for theAppleiPhone, the first home-grown iPhone application in Australia. In 2008 the broker disbanded itsShare Shops (face-to-face operations) closing the front in the Commonwealth Bank branch inPitt Street,Sydney, following the earlier closure of the Melbourne Share Shop inCollins Street.
CommSec has retained and increased its already significant market share in retail broking through both CBA's acquisition of other banks and its own acquisition of other broking firms.[5] CommSec now performs broking operations for Colonial First State,[6] TD Waterhouse,[7] AOT,[8] Neville Ward Direct,[9][10] Auckland Savings Bank (ASB),[11] and IWL (Westpac Broking, Sanford and Avcol).[12] The acquisition of IWL in 2007 gave CommSec significant market share in wholesale broking to complement its existing retail presence.[13]
In 2008 CommSec diversified into the short term deposit sector with the introduction of its Cash Management product.[14] The product consists of two distinct accounts the CommSec Cash Account (CCA) and the CommSec Investment Account (CIA). The CCA is the source of funds for stock trading and also an everyday transaction account, with a linked debitMastercard. The CIA earns interest and cash can only be transferred to and from the CCA.
In December 2012, CommSec announced plans to replace CCA and CIA accounts with a Commonwealth Direct Investment Account (CDIA), which is a settlement account that earns interest.[15]
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