How do I buy shares for my children?
CommSec is unable to trade on behalf of a minor, so technically you can’t open an account for anyone who’s under 18. However, you can open a trust account in the name of an adult who will act as trustee until the minor turns 18. Once the minor has turned 18, the shares can then be transferred into an account in their name. When you transfer shares out of the minor trust, you will need to complete an Off Market Transfer form. This involves a fee of $54 per stock, charged to the recipient's account.
How do I open a minor trust trading account?
If you're new to CommSec:
- Select Join Now from the main menu on the CommSec homepage.
- Select Share Trading and then click on Get Started.
- Under “Select which account you’d like to open”, choose Trust or Minor.
- Select Yes under "Would you like to open a Minor Trust account?"
If you already have an account with CommSec:
- Log in to your CommSec account and select Portfolio in the main menu.
- Click on Offers Applyand then select Applications.
- At the bottom of the page, select Apply Now next to your preferred option – you can either add a new Trading account and settle your trades using a Commonwealth Direct Investment Account (CDIA), or add a new trading account and settle using your own cash account.
- You’ll now be taken to the online application page. Under “Select which account you’d like to open”, select Trust and then continue through the application.
What to enter for the account designation
Enter the full name of the minor (where possible) as your designation. Due to ASX requirements, the name may be abbreviated if it’s longer than 23 characters. You could try removing or abbreviating the middle name (e.g. JONATHAN A CITIZEN rather than JONATHAN ANTHONY CITIZEN).
If the account is for more than one minor, the designation must reflect all the minors’ names. For example, if your children’s names are STACEY CLARE SMITH & MARY ROSE SMITH, the designation could be amended to STACEY C & MARY R SMITH.
Settlement account
If you've chosen to settle using your own bank account, the account you provide as the settlement account cannot be in the minor’s name. It must be in the name of the person(s) applying for the account (i.e. the adult trustee) or in the name of the trust.
When will my minor trust account be open?
We aim to open new accounts within 3-5 business days. If there are any issues with your application, we’ll contact you. Once your application has been successfully processed, you’ll receive an email with your account details and Client ID.
For help opening a minor trust account, please call us on 13 15 19 (or +61 9115 1417 if calling from overseas) between 8am and 6pm, Monday to Friday, Sydney time.
Please consider the product disclosure statement and terms and conditions document, available from www.commsec.com.au, before making any decisions about the products and services offered by CommSec.
