(Australian Associated Press)
Commonwealth Bank is trying to lower the barriers to budding share market investors in an effort to drum up new business for the bank.
CommSec’s new Pocket app will let customers invest as little as $50 into baskets of themed shares, allowing inexperienced investors to pick areas they like rather than stocks.
Most investors currently require a minimum of $500 to enter the share market, which CBA-owned broker CommSec says is one reason only four per cent of Australian adults trade online each year.
The app charges $2 per trades up to $1,000.
“We’ve worked with ASX and ETF (exchange-traded fund) providers to bring down the amount people need to make investing more accessible,” CommSec executive general manager Richard Burns told AAP.
Other online management schemes such as Raiz Invest, formerly known as Acorns, already provide automated investments.
The Pocket app features seven ETF options designed to ease in first timers, with categories including the largest 200 companies on the ASX, emerging markets, health stocks and the tech sector.
“One of the biggest barriers people worry about is what stocks to invest in, but by starting with ETFs it’s a great place to begin because they immediately become diversified,” Mr Burns said.