CommSec Pocket will allow Australians to start investing directly in the stock market via ETFs for as little as $50.
Currently, only 4% of Australian adults transact online in the share market, as most listed securities require a minimum initial investment of $500.
CommSec Pocket wants to solve this problem by providing access to seven investment options for as little as $50 and offering automated regular investing.
The seven investment options cover local and global industries and regions with options such as the Aussie top 200, a technology ETF made up of the 100 largest technology companies and an emerging markets ETF.
The app also has options for people interested in sustainability with an ETF for global climate change leaders without unethical investments and a health ETF for investments in healthcare and pharmaceuticals.
The app will be offered at a brokerage price of $2 for trades up to $1,000, with investors only paying when they trade, with no ongoing account fees.
CommSec executive managing director Richard Burns said many Australians find equity investing out of their reach or too complex, but this has broken down barriers.
“We have removed these barriers by significantly reducing the amount needed to get started, reducing the cost of investment and simplifying the choice,” he said.
“CommSec Pocket makes diversified stock market investing a simple and affordable option for more Australians.”
CommSec Pocket is not the first to leverage micro-investing, as Raiz, formerly Acorns, also allows users to easily access the market.
The app is backed by the Commonwealth and uses its security frameworks and infrastructure.
“CommSec Pocket is our latest innovation that will enable more Australians to grow their wealth,” Mr Burns said.
“We will continue to listen to our customers and find new ways to help all Australians access the opportunities the stock market can offer.”
