Since the CommSec pocket app was released in July 2019, it has been downloaded over 100,000 times. That’s a lot of people! So what is all the fuss about? And more importantly, is it worth downloading? In this blog post, we will take a comprehensive look at the CommSec pocket app and answer these questions.
What is CommSec Pocket?
CommSec Pocket is a micro-investing platform that was created by CommSec, which is a subsidiary of the Commonwealth Bank of Australia.
The app was designed to provide investors with seven investment options that make investing accessible for those with smaller amounts to invest.
Commsec Pocket is a comprehensive micro-investing app that offers a wide range of features, including the ability to view your portfolio, trade stocks, and access market news. The app also offers a number of educational resources, which can help new investors learn about the stock market.
What is micro-investing?
Micro-investing is one of the latest trends in investment options. Micro-investing allows you to invest a small amount of money into your chosen investment vehicle, normally this is through Exchange Traded Funds. This is a great way to get started in investing, as you don’t have to invest a large amount of money.
Before Micro or Mini investing apps like CommSec Pocket started popping up the only way of buying shares was to save up the minimum investment of $500 that the ASX requires for a trade and you then pay brokerage on top of that. Micro-investing allows you to start investing with as little as $50, this is a great way for newbie investors to dip their toes into the share market with a small amount of money and learn about investing in the share market at the same time.
Investing through Commsec Pocket
First thing you will need to do is to open a Commonwealth Bank bank account (if you don’t already have one). This transaction account is required as that’s where you will deposit the money that you plan to invest in the Pocket App. The next step is to deposit money into your Commonwealth Bank transaction account.
Once you have deposited some money into your account, you can start investing.
Using CommSec Pocket is easy, it has a number of different features that make investing simple and convenient for investors on the go. For example, the app allows you to buy and sell your investments quickly and easily, view your portfolio balance and performance at any time, and receive real-time notifications about changes in the market.
What Exchange Traded Funds are available on CommSec Pocket?
CommSec pocket gives you the choice of 7 ETF’s to invest in. These ETFs cover a range of different markets and offer you the chance to spread your investment portfolio across a number of different sectors.
Commsec Pocket ETFs
- Aussie Top 200: Largest 200 Australian Securities listed on the ASX
- Global 100 index: The worlds largest 100 blue chips
- Aussie Dividends: Large Australian Companies that pay Aussie dividends and focus on paying above average dividends
- Global 100 index: The worlds largest 100 blue chip companies by market capital
- Emerging markets: Top companies in China, Korea, Taiwan & more
- Health Wise: Global Healthcare, Biotech, Medical & Pharma
- Sustainable leaders: Global Climate Sustainability Leaders ETF
- Tech Savvy: Top 100 US tech companies listed on the nasdaq stock exchange
As you can see, there is a good variety of options to choose from and there really should be something that suits everyone, whether you are young and want to invest in tech stocks or a more seasoned investor looking for options in the health industry. Because that how it works right? young whippersnappers and their technology!
What is the best Commsec Pocket ETF?
All of the Commsec Pocket ETF options are great but our favourite option for beginners just kicking off their investing would be the Aussie 200 portfolio. Behind the simple branding name this is the Blackrock iShares Core S&P/ASX 200 ETF (ASX: IOZ).
Not only does this ETF provide low management fees of 0.09% it gives you access to the top 200 Australian companies which includes companies such as BHP and Commonwealth bank.. ironic hey?
Fees
Commsec pocket charges fees in a few different ways:
Brokerage Fees
On the surface the brokerage fees for Commsec pocket are on the reasonable end with investments under $1000 costing a low fee of $2 per transaction.
If you are only looking to invest $50-$100 at a time this fee can be 2-4% of your investment – bit rich if ask me.
If you are looking to invest more that $1000 at a time through Pocket the brokerage fees changes to a flat percentage of 0.2% ($2 per $1000 you are investing).
Account Keeping Fees
Like most other Micro investing apps CommSec pocket does not receive any account keeping fees.
ETF Management Fees
Just like investing in ETF’s the provider will charge management fees. These fees range from 0.09% to 0.69% and are charged annually. Like a normal ETF investment these fees are taken out of the ETFs performance each year so the good news is you will never see a bill!
Late Settlement Fees
One thing to note is that if you don’t have the funds in your account on settlement day you will be slugged with a $10 “Late Settlement Fee”.
Does CommSec Pocket pay dividends?
Yes, CommSec Pocket does pay dividends! The dividends are paid from the underlying ETF holdings which will change depending on the investment theme you have chosen.
What is the minimum I can invest with CommSec Pocket?
The minimum investment you can make with the CommSec Pocket app is $50. This makes it a great option for smaller investments and gives you the chance to get started with investing without having to commit a lot of money. Just remember to take into account the $2 brokerage fee that will be charged!
Setting up Automatic investment with CommSec Pocket
One great feature of Commsec Pocket is the Automatic Investment feature.
This regular investment feature allows you to set up recurring investments with the click of a button making it a truly set and forget solution to investing! Just be sure to have money in your transaction account, set up your Auto Investing and forget about it.
Is CommSec Pocket Chess Sponsored?
One really exciting thing for us finance nerds is that just like its bigger brother CommSec, CommSec Pocket is also Chess sponsored! being Chess sponsored means that you the shareholder retain the ownership of the shares directly. They are not held in a trust like other online brokers.
Pros and Cons of CommSec Pocket
Pros
- Allows for reduced barriers to entry for investing
- Automated investing
- Chess Sponsored Holdings
- Intuitive App that is easy to use
- Great for beginners
- Great way to learn about ETFs
Cons
- Commsec Pocket Fees can be really high if you are only investing the minimum amount
- Limited investment options
- Must have a Commonwealth Bank Transaction Account to be able to use it
The Final Word on this CommSec Pocket Review
While this micro-investing app doesn’t suit my personal style of investing I think it can be a great option for beginners who want to dip their toes into stock market investments or for those looking for a more hands-off investment solution. The CommSec Pocket app is easy to use, has a great range of ETFs to choose from and pays out dividends!
Be mindful of the brokerage fees if you are only investing small amounts and of course be sure to read the relevant product disclosure statement and make sure that this style of investing suits your goals and investment strategy before diving in. If you need further clarification be sure to seek professional advice!
So there you have it, my comprehensive review of the CommSec Pocket App. Have you used it before? What did you think? Let me know in the comments below!
Happy Investing!