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CommSec Review - is it scam or safe?

CommSec review - is commsec.com.au scam or good forex broker?

RATING: 3.5 / 0 REVIEWS CommSec
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 Commonwealth Securities Limited (CommSec) is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia, and a participant of the ASX Group and Chi-X Australia. Its office is registered at Sussex Street, Sydney and its website states that it falls under the regulatory oversight of the Australian Securities and Investments Commission. Check out the whole review to found out the pros and cons in trading with this broker. 

 

 

Advantages 

 

Regulation and Security 

 

CommSec seems like a pretty serious broker. After checking with the online registry of ASIC we can confirm that the information presented on the website is accurate. The broker is in fact regulated by the Australian authorities and this should be seen as a huge advantage. Potential clients can be sure about the safety of their funds, since regulation forces the brokerage to handle the clients money separately from their own. This significantly lowers the risk of foul play on part of the broker. What’s more, ASIC requires brokerages to have a minimum capital of 1 000 000 AUD, and successful compliance with such a requirement lends the broker further legitimacy in the eyes of potential traders. 

 

CommSec is also a subsidiary of the Commonwealth bank of Australia, as was mentioned above. The Commonwealth bank is one of the major banks of Australia and has over 1100 branches around the globe, as well as more than 50 thousand employees. This further cements the credibility of the brokerage. 

 

For those interested in other brokers operating in Australia – be sure to check out our list of Australian forex brokers

 

>>List of Australian forex brokers<<

 

Low spread 

 

Through a demo account we were granted access to the trading platform provided by the brokerage. On it we could see a spread of 0.8 pips on EUR/USD. Compared to the industry average of 1.5, the spread offered by CommSec is pretty good and favorable for potential traders. The size of the spread is especially important in long-term since it could add up to a noticeable amount and lower the potential profit of the trader. Such a low spread is always in our opinion a big plus for the brokerage. 

 

Leverage

 

Through the demo account we could calculate the leverage on EUR/USD to be 1:100. This is a reasonable leverage which extends potential traders freedom in their trading, as well as the possibility of higher profits. Have in mind that the Australian authorities have not yet decided to limit the maximum possible leverage that can be offered by brokers, in contrast to the US or Japan where the limits are 1:50 and 1:25 respectively. 

 

Platform 

 

CommSec offers their own web-based platform which is pretty neat. After a few minutes going through it on the demo account we could see that it provides potential traders with a lot of analytic potential and helpful tools such as access to their own community forum, ProRealTime charting, stock announcements and many others. Here is a screenshot: 



Commsec trading platform. Click to zoom.
 

 

Account types

CommSec further proves how serious it is with the requirements it has for traders interested in opening an account with them. It offers two types of accounts: a Limited Risk Account and a Trader account. The Limited Risk Account is especially handy since all your positions on it need to have a Guaranteed Stop Loss. This means that the risk of suffering an added loss due to slippage (sudden market move) is averted and the potential losses will be limited to the initial stop-loss. To be able to open such an account a trader must provide evidence of liquid assets of $20 000 or more, as well as evidence for employment. Such strict requirements further shed light on how serious and straightforward CommSec are. 

 

Financial instruments 

 

CommSec offers potential clients an amalgam of products from which to choose. Clients may trade CFDs, Exchange traded funds (ETFs), Australian shares, Warrants, Fixed income securities, Managed funds and Margin loan. Such a diversification of trade is always a welcoming sign since it attracts new traders and offers them a wide array of market opportunities. 

 

Disadvantages 

 

No MT4/MT5

The brokerage does not, however, provide its clients with access to the MT4 or MT5 trading platform. We see this as a disadvantage for several reasons. First of all, the platform is the preferred choice for more than 80 per cent of the trading world. Among its unique features is the MQL programming language which enables traders to design their own advisor-bots and back-test trading strategies. It also offers huge analytic potential through its numerable advanced analysis tools, signals and indicators that can be altered or redesigned to suit the needs of potential trader. Interested traders should check out our list of recommended forex brokers that offer the MT4/MT5 trading platform. 

>>List of MT4 forex brokers<<

 

Conclusion

 

As was mentioned above, CommSec does not play around. Clients may be certain of a clear-cut compliance with the highest regulatory standards and all the benefits that come with it. Perhaps the most important one is the security of the clients funds. Furthermore, the brokerage has a wide variety of financial instruments, as well as a pretty accessible trading platform which offers a lot of analytic potential both for newbie and seasoned traders.The very strict requirements for opening an account with them further demonstrates that CommSec means business and does not aim at misleading traders or scamming them for a quick, easy profit. All in all, we have ourselves a top-notch brokerage and we highly recommend equally serious traders look into it and explore the market possibilities it has to offer them. 

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Traders` reviews for CommSec

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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