Stockbroking platform

Questions

Answers

  • Do I have to trade in round lots?

    In Australia, you can trade any quantity as long as it’s a whole number. For example, you can buy 100 shares, 10,000 shares or 10,321 shares.

  • To what extent can I buy and sell shares online through CMC Markets stockbroking?

    If you do not already hold the specific stock there is a minimum trade size of $500 plus brokerage. If you already hold the stock, we’ll accept an order of any size as long as it’s either covered by cleared funds in your cash account (for buy orders) or covered by CHESS Sponsored Holdings (for sell orders). You will need a CMC Markets Cash Account or a margin loan with Leveraged, St. George or Suncorp.

    When you sell shares online, the funds from the sale are available for new purchases immediately after the trade is completed (the availability of funds on margin loans are available at the discretion of your lender). We offer Australia’s lowest online brokerage starting at $11 or 0.10%, whichever is the greater, down to $9.90 or 0.075% for our Premium Trader accounts.

  • How long is the settlement term?

    For most ASX securities, settlement is currently T+2 (trading day plus 2 trading days) unless stock is trading a deferred settlement which may happen when companies reconstruct capital. or a new company that has listed on the market. Your trade confirmation will include the settlement date for all trades.

  • How do I receive my proceeds from share sales?

    Proceeds from online share sales will be credited to your CMC Markets Cash Account or settled with your margin loan.

  • When can I place orders?

    You can place orders 24 hours a day, 7 days a week on our stockbroking platforms.

    Orders placed between 07:00 and 16:10 AEST/AEDT on trading days are sent directly to the market. Orders placed outside market hours are queued and sent to the market on the next trading day (ASX markets generally allow orders from 07:00 AEST/AEDT).

  • What is straight-through processing?

    Straight-through processing (STP) means your order is sent directly to the ASX market without any human intervention. Some online brokers use a system where orders are sent to a dealer who then has to approve or reject them and manually enter them into the market. If the market is volatile, any delay could have significant consequences. Our system approves or rejects the order and places it directly on the market, typically in under one second.

    In some cases, however, we need to have an order approved by a dealer before it is sent to the market. This may happen when the order price is too far from the market or there has been little trading activity in the stock. This system aims to protect you by ensuring an order that may have been entered incorrectly is prevented from trading (for example, if you’d mistakenly placed a price of $10.00 instead of $1.00).

  • How fast are orders entered?

    Our straight-through processing gets your order to the market typically less than one second after it’s received by our website. However, other factors such as the speed of your computer, your connection to your ISP, and your ISP’s connection to the internet itself may play a part in determining how long it takes for an order to reach our system.

  • Can I send orders via email?

    No. We don’t accept orders sent by email.

  • What is a limit order?

    A limit order is when a trader places a set maximum price on a buy instruction or a set minimum price on a sell order. If the market doesn’t reach the set price, the order won’t be executed.

  • When will my order expire?

    Orders can be submitted as ‘Good Till Cancelled’ meaning the order will not expire until it is filled or the stock is purged by the ASX (for example when the stock goes ex dividend). Alternatively you can choose a Day Only order which will expire at the end of the day if it has not filled. You can also choose a specific expiry date up to 8 months in the future. If an expiry date falls on a public holiday or weekend, the order will be purged on the evening of the previous trading day.

  • Can I amend or cancel my orders, and will I be charged extra?

    Any order that hasn’t been filled can be amended or cancelled at any time. You won’t be charged for any amendment or cancellation. However, if you amend an order to a higher quantity, the order may split into two separate orders. In this case each would attract a brokerage charge.

  • What is a split order?

    All orders on the market at the same price level are queued in the order they were received. If you amend the quantity of an order to a greater quantity, and there are orders behind your original order in the queue, the amendment may create a second order at the end of the queue for the increased quantity. This splits the order, and is an automated process within the ASX’s market systems.

  • Why was I charged brokerage twice on a split order?

    The ASX market treats split orders as entirely separate orders. For this reason, standard brokerage charges apply to both orders.

  • Why can I sometimes increase the quantity yet not create two orders?

    If there are no orders behind your original order in the queue, we may submit the amendment in such a way that the original order is not split. But, if there are orders behind your original order, we can’t avoid creating the split order.

  • How can I avoid splitting an order?

    To avoid splitting an order, you can cancel the original order and submit a new order for the new quantity. Note, however, that if the original order has already partially traded brokerage would still apply to both the old and new orders. Alternatively, amending the price as well as the quantity will ensure that an order does not split.

  • What happens to my shares once I’ve bought them?

    Online share traders with CMC Markets Stockbroking must be broker sponsored with CHESS or held under a margin loan with Leveraged, St George or Suncorp. Your shares will be entered into your portfolio and will be available for you to trade in the future. The shares will also be registered with CHESS under your Holder Identification Number (HIN) and a statement will be sent to your registered address. See the CHESS FAQs for more information about CHESS.

  • How will I be notified of an order’s progress or any problems?

    We’ve built a sophisticated messaging system that lets you know exactly where your order is – from placement on the market, through to partial fills and to a final fill. The messaging system also advises if an order is rejected and gives you the reason. You can access the messaging system from your stockbroking platform. Click the ‘Messages’ link towards the top of the online trading platform, or the History module of the Pro platform.

    If you choose to be notified of trading events by email, then you’ll also be emailed at each stage. You can turn this notification on or off by choosing ‘Preferences’ on your stockbroking platform, and changing the email setting.

  • Will I still receive trading confirmations?

    Yes. Trading confirmations will be emailed or posted for each trade. You can also view and download confirmations on the platforms (under Account | Confirmations).

  • If I sell my shares, can I use the funds immediately to buy more shares?

    Yes, you can use these funds to make new purchases, but the funds aren’t available to withdraw from your account until the sale is settled.

  • Why is a buyer offering more than a seller is asking?

    The market is in ‘pre-open’, which means that buyers can overbid sellers in order to have their bid at the top of the market. When the market opens, all the bids are compared in the “opening auction” and a formula is run by the ASX to trade those shares that are overlapping, until a ‘normal’ market is established.

  • The status of my order says ‘Waiting’. What does that mean?

    Your order has been received outside market hours and is waiting for the market to open before being sent to the market.

  • Can I trade options online?

    We don’t take orders for options online, but you can place orders with our Options Dealers by phone on 1300 136 323.

  • What’s the minimum value of shares that I can buy?

    The ASX generally requires a minimum parcel of $500 to be purchased if you don’t currently hold that particular security. Once you have $500 worth of an individual security, you can purchase any value of shares you like.

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