The NAB trades online to complete the four

The National Australia Bank has announced an alliance with Sanford Securities to offer an online broking service (National Online Trading), being the last of the big four banks to offer this service. While Comsec was an early mover in online broking, Westpac and ANZ (alligned with Etrade) have entered this market more recently.

National Online Trading is offering a brokerage of $27 per trade up to $13,500 which undercuts industry heavyweights Comsec and Etrade. Most online brokers currently have a minimum brokerage of approx. $28 to $29. The service includes stock quotes, watch lists, market depth and you can also view your account balance online.

Rather than fully developing their own online broking service, a number of institutions are taking advantage of existing players. For example, ANZ uses Etrade, the St George service uses HSBC and Hartley Poynton provide back end processing and market information for a range of online brokers including Quicken, Solution 6 and Your Prosperity. In this way the online broking service, rather than representing a significant source of future revenues, complements an institution’s existing services and attracts new customers.

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