How to Buy Shares on CommSec

What is CommSec?🔗

CommSec launched in 1995 and has grown into one of the country's most popular retail brokers, largely thanks to its link to CommBank's huge customer base. It is a CHESS-sponsored broker, which means your shares are held directly in your name on the ASX's CHESS system under a HIN (Holder Identification Number). If CommSec ever ran into trouble, your shares would still be yours. The platform covers ASX shares, ETFs, LICs, warrants and international shares, but for most beginners the ASX side is where they start.

CommSec vs CommSec Pocket🔗

CommSec runs two products. CommSec is the full trading platform, letting you buy any ASX-listed security, set limit orders, and access research. CommSec Pocket is a stripped-back app for beginners, with a curated list of around seven ETFs and a flat $2 brokerage for trades under $1,000. Its simplicity is a feature if you are just starting.

If you want individual shares or a specific ETF not on the Pocket list, use the full platform. If you want the simplest possible entry into ETF investing, Pocket is a reasonable start. For fund ideas, see the best ETFs in Australia.

Step 1: Open a CommSec account🔗

Go to commsec.com.au and start an application (around 10 to 15 minutes). You will need your Tax File Number, an Australian residential address, photo ID (licence or passport), and a settlement cash account. CommSec will either open a CDIA (Commonwealth Direct Investment Account) for you or link an existing CommBank account. You do not need to be a CommBank customer to start, but the CDIA is a CommBank product. Approval is usually within one business day, after which you receive your HIN and login.

Step 2: Fund your account🔗

Before you can buy, you need cash in your settlement account. If you have a CDIA, transfer money in from your everyday bank (funds typically clear overnight on business days). If you linked an existing CommBank account, CommSec can draw from it at settlement. Tip: move the money a day before you plan to trade, as waiting for funds to clear on the morning you want to buy is a common beginner frustration.

Step 3: Find the share or ETF you want🔗

Log in and use the search bar. You can search by ASX code (for example VAS for the Vanguard Australian Shares ETF, or CBA for Commonwealth Bank) or by company or fund name. The security's page shows the current price, recent history and basic information, plus research reports for most ASX shares. Not sure which ETF? Start with the best ETFs guide.

Step 4: Place a buy order🔗

Click "Buy" and fill in three things.

• Order type. A market order fills at the best available price now (fast, but the price can vary on thinly traded stocks). A limit order sets the maximum you will pay, giving price control but no guarantee it fills. For liquid ETFs and large caps a market order is usually fine; for smaller stocks consider a limit order.
• Quantity. Enter the number of shares or units. CommSec shows the estimated total, including brokerage, before you confirm.
• Expiry. A Day order expires at the end of the session; Good Till Cancelled stays open up to 30 days. Most beginners use Day orders.

Review the summary, then confirm. If the market is open and you placed a market order, it usually fills within seconds.

Step 5: Settlement (T+2) and your holding statement🔗

Your trade fills on the exchange, but the formal transfer of shares and cash happens two business days later (T+2). On settlement day the cash is debited from your CDIA or linked account and the shares are credited to your HIN. You will receive a CHESS holding statement confirming your shareholding, and you can see holdings live under "Portfolio". Do not move your settlement funds out before T+2, or the trade will fail.

CommSec brokerage and fees🔗

On the full platform, brokerage is tiered: $5 up to $1,000, $10 for $1,001 to $3,000, then 0.12% (minimum $19.95) above that. CommSec Pocket charges $2 for trades under $1,000. There is no account-keeping fee. Because brokerage is a flat fee at small sizes, it is the percentage that matters.

Always check the current rates on CommSec's rates and fees page before trading, as fees can change over time.

Tips for beginners buying on CommSec🔗

• Use limit orders on smaller or less-liquid stocks. For a major ETF a market order is fine; for a low-volume small cap, a limit order protects you from a bad fill.
• Check your settlement funds the day before. The most common beginner mistake is placing a trade before the cash has cleared.
• Remember the $500 minimum for a new holding. This is an ASX rule, not a CommSec one. Once you hold a stock, you can top up with any amount.
• Keep records from day one. Every trade confirmation is a tax document you will need to calculate capital gains later.
• Do not over-trade. Buying $200 and paying $5 means you are 2.5% down before the market moves. Larger, less frequent purchases are more cost-effective.

❓ Frequently asked questions🔗

Keep reading🔗

• How to buy shares in Australia
• How to choose an investing app in Australia
• The best ETFs in Australia