HSBC launches online brokerage

HSBC Bank Australia has made a return to the online share-trading market after an absence of six years.

The bank announced yesterday that it would use Bell Direct's white label platform to launch HSBC Online Share Trading.

At this stage, the service is a basic Australian equity offering - no CFDs, no international stocks and no frequent trader discounts

HSBC Bank Australia's head of wealth management, Michael Danby, said the bank would be adding a few bells and whistles over time.

For the moment, the bank is promoting two selling points: a direct online link to an HSBC transactions account; and low cost brokerage.

HSBC is charging A$15.95 for trades worth up to $15,000 and 0.11 per cent of the value of the transaction for trades of higher value.

Trades will be funded directly from the customer's HSBC transaction account and be settled in the same account.

Researcher Canstar said online brokerage fees have been coming down over the past couple of years, as brokers try to entice clients back into the market.

Average brokerage on a $10,000 trade has come down from $25.75 in 2010 and $22.67 last year to the current average rate of $21.07.

HSBC has joined in this pitch to the cost-conscious retail share investor.