CommSec follows fintechs into micro-investing

CBA’s digital broker CommSec is moving into the micro-investing space with a new app that aims to get people investing in exchange traded funds (ETFs).

The bank today launched iOS and Android versions of a new app called CommSec Pocket, which allows investors to put $50 or more into seven ETFs.

ETFs are a basket of securities created by issuers or fund managers that are traded on the stock exchange and usually require a minimum investment of $500.

“Currently just four percent of Australian adults place a trade online in the sharemarket each year,” CommSec said.

“Many more would like to, but feel the barriers to getting started are too high.”

CommSec Pocket will be offered at $2 brokerage for trades up to $1000. “Investors pay only when they trade with zero ongoing account keeping fees,” CommSec said.

CommSec said the Pocket app “is secure, built-on and using CommBank and CommSec’s security frameworks and infrastructure.” 

To use CommSec Pocket, customers must have a CBA transaction account and a CommSec ID or NetBank ID.

Micro-investing was pioneered by fintechs like Acorns, which has since changed its name to Raiz Invest. FirstStep is another example of a micro-investing app available in Australia.