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National Australia Bank launched its online trading service today, National OnLine Trading Limited, a newly admitted member of the Australian Stock Exchange. National Australia Bank further announced that it will acquired a 15% stake in Perth-based broker Sanford Securities. This stake in Sanford will be taken by NAICL - the venture capital arm of National Australia Bank.
National Australia Bank has entered into an arrangement with Sanford Securities Limited under which a member of the Sanford Group is providing the computerised trading and settlement systems (and staffing requirements) for NAB Online Trading.
Mr Ross Pinney, Executive General Manager, Products and Services said that it had been important to consider the future direction of the market here in Australia and ensure that we could deliver a quality service at competitive prices for our customers to trade securities on line.
"We believe this market will mature very quickly and we feel well placed that our business model will provide a source of sustainable competitive advantage for the foreseeable future."
"We are therefore pleased to have developed a strong relationship with Sanford Securities who have in their own right brought a great deal of innovation to the market place. We are now positioned through our relationship with Sanford to understand changes in this market and respond quickly," Mr Pinney said.
National's on line broking service is currently being test marketed and will be formally launched to the market on 15 February 2000.
Bob Brice, General Manager, Global Product Management said "We also believe many of our customers will prefer the ease with which they can combine managing their share portfolio with their other financial services through the National, in the online environment."
"Unlike some of the bank/broker offerings, the National has elected to become a full participant member of the ASX. By becoming our customers' broker we feel this provides comfort to our customers, particularly those who are new to on line trading."
"Another facet of our relationship with Sanford is the possibility of transferring the business model to our other franchises around the world. Initially we will be looking at the UK market where we already have a customer base of over three million," Mr Brice said.
The relationship with Sanford has allowed the National to provide very competitive pricing for customers at $27 a trade for transactions under $13,500.
Using NAB Online Trading, customers can buy and sell CHESS approved securities (including warrants) listed on the Australian Stock Exchange over the Internet or by telephone, 24 hours a day, seven days a week.
Initially, customers will trade through a National Australia Trustees Limited Common Fund account, but over the coming months, additional National Accounts will be added to those which a customer can use for their online trading activities.
Other enhancements that will follow the initial launch include:
Exchange Traded Options
Straight through processing
A hold funds facility
Access to Initial Public Offerings (IPO)/floats
Integration of the existing Margin lending product
Access to International securities
While the service does not offer personal securities advice, the web site is greatly enhanced with syndicated public information that will give users valuable insights to company research and stock recommendations.
With NAB Online Trading, all securities can be traded over the Internet unlike some other offerings which rely on a higher component of telephone usage. Most orders are placed onto the market within minutes of being received.
Mr. William Wolke has been appointed to the role of Managing Director, NAB Online Trading.
NAB Online Trading also provides:
Quick quote facility
High quality news service and company research
Useful Australian and overseas share market indices
A fully automated account and portfolio management service to view your holdings, account balances and outstanding orders online
Market depth information
Personal watchlists
Graphing and charting tools to monitor the performance of your stocks and the ability to download data for use with other charting software
Order and trade confirmation via email, fax or mobile phone text message.
Brokerage Rates
Internet Trades
Transactions under $13,500 $27.00
Transactions over $13,500 0.2%
Phone Trades
Transactions under $12,000 $48.00
Transactions over $12,000 0.4%
For more information about NAB Online Trading, visit our website at www.nab.com.au/trading after 14 February, 2000
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