CommSec’s new international platform leaves users fuming

The revamped CommSec platform, unveiled in July to compete with other fintechs, is drawing disdain from customers who say they have to wait days to access overseas holdings.

CommSec says it has boosted its call centre “resources” to help respond to customer issues. Picture: Bloomberg

CommSec’s new international platform is under fire from frustrated users who have to wait days to access their overseas holdings, a blow for Australia’s largest online stockbroker as it vies to compete against cheap and nimble fintechs.

The subsidiary of Commonwealth Bank launched a new international trading platform in July to update its previous offering, which allowed investors to trade US stocks online through Pershing or by phone.

The new system lets investors trade shares in 13 offshore markets, including the US, Britain and Japan, for as low as $US5 per trade for US shares or $US9.50 per trade for a “Plus” version that lets users manage their own foreign exchange conversions.

But CommSec customers who spoke to The Australian, as well as others who have posted complaints on social media and review sites, have expressed deep dissatisfaction with the rollout of the new system.

“There is heaps not to like with the new platform,” said Barry Telford, a user who had dealt through CommSec’s old Pershing platform and said he had never had problems before. “I don’t think I am alone because as of last Friday when one rings the CommSec International number one is told there will be a 60 minute wait to get through.”

Some of the feedback CommSec has been receiving.

Problems listed by users include delays in fixing issues with regulatory forms when existing accounts are automatically transferred from Pershing into the new platform, payments incorrectly made to accounts linked to the old system, and long delays in transferring the funds into their correct accounts.

Commonwealth Bank is widely recognised as having the best technological infrastructure of the four major banks. It’s new CommSec platform is a response to challengers such as neo-broker Stake, which have attracted investors and traders with promises of cheap and easy access to overseas stocks.

The descriptions of the CommSec platform’s performance have been far from complimentary.

With more Australians investing directly in international shares than ever – particularly younger investors – Stake has become the largest Australian broker for US shares and now ranks No.3 behind CommSec and National Australia Bank’s nabtrade in the online broking market, according to Investment Trends.

The overwhelming majority of investors are interested in American stocks, but another common gripe among users of the new CommSec International platform is that it quotes all stock prices in Australian dollars, while dividend payments are also automatically converted into Australian dollars.

“They get to clip customers both ways. First, to transfer sales and dividends and then … when you transfer the money back to trade. Terrible deal,” posted Duncan, a productreview.com.au user in southeast Queensland.

On its website, CommSec says its “streamlined application process can have you trading internationally within minutes” but customers with existing international holdings are complaining of long delays.

They are being transferred to the new in-house platform automatically, while being required to submit new tax and regulatory forms and agree to new terms and conditions before they can access their existing shares.

A user who said he didn’t trade very frequently said that when he tried to log in to his account to sell some of his international shares, he was stunned when he found a zero dollar balance.

After waiting close to two hours on the phone for assistance, CommSec staff explained his account had been migrated into a new account for the new trading platform and that he needed to complete some steps and sign new agreements.

He followed the instructions, but after several days his account had still not been set up, leaving him without access to the platform and unable to trade.

“CommSec is a big reputable company, I’ve never had issues before but this hasn’t been a great experience,” he said. “And the fact that their wait times are still so long tells me this must be a widespread problem.”

A spokeswoman for CommSec said the bank had faced a higher volume of inquiries from customers since launch in July and had boosted its call centre “resources” to help.

“We are working hard to assist any customer who may need help navigating the new platform and have engaged additional call centre resources to support,” she said.

The new trading platform provides “enhanced capabilities and reduced trading fees”, she said. “We have been assisting customers with migrating their accounts to this new platform via a range of communication over a number of months (and) have seen an increase in calls to our service desk.”

CommSec’s trading revenue in the 2023 financial year ending June 30 fell 37 per cent to $230m from a year earlier and was less than half the $493m posted in the 2021 financial year at the peak of the pandemic-induced wave of trading.

Tim H., another user of productreview.com.au, posted on the site: “Honestly, what is it about large corporates executing IT ‘upgrades’ so poorly. The new CommSec International platform is scary bad.

“Some of my trades done on the old platform show incorrect purchase prices or don‘t show them at all … and any attempt to generate a statement brings the platform to a grinding halt. Forget about calling, they have clearly gone into meltdown with over 1 hour wait times … how is it companies with so many resources can get to this stage without testing with humans!!”

Users have also used the social media platform X to vent about their problems with CommSec.