Online broking shake-up

SYDNEY - Australia's online stockbroking industry is set for a major shake-up, with CMC Markets slashing brokerage fees as it chases market share.

The stockbroking firm revealed it was cutting its online stockbroking fee from A$19.95 to A$9.90, making it Australia's lowest online rate. CommSec and E-Trade, which control an estimated 80 per cent of the online broking market, charge A$19.95 and A$32.95, respectively.

"This is really a shake-up of the market," said CMC managing director, Australia and New Zealand, Barry Odes. "Traders in Australia have been paying rates much higher than the rest of the globe."

He described the fee as a "new standard in online stockbroking" and said CMC was able to offer it because its cost per trade was "very low".

"We believe the Australian stockbroking landscape will follow the trend we have seen in the US where they pay very low brokerage rates to trade online.

- The Australian