6 steps to open a trading account
- Choose a broker
- Select your membership level
- Provide ID
- Link bank account
- Submit application
- Start trading
If you want to invest in shares, you'll need to sign up with a stockbroker.
You have 2 choices here – you can hire the services of a traditional full-service broker or you can do the trading yourself through an online broker (share trading platforms).
Online brokers allow you to buy and sell shares in publicly listed companies over the internet. You can set up an account and it will usually be activated within 1-2 business days.
Where previously you needed to call up a broker to buy and sell the shares for you, these days, investors can trade directly by opening an online share trading account for a much lower cost.
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Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
If you take a historical period, buying shares can be a financially rewarding experience.
While the share market will be volatile, if you take a historical perspective, share market indexes, say the Australian ASX200 or the US S&P 500, historically have always reached a new peak, even if past performance is not a reliable indicator of future returns.
Now this doesn't mean that every single company listed on an exchange will make money. In fact, the majority of businesses on an index will underperform the market as a whole. But winners will often offset losing stocks.
To illustrate the point, every year, Vanguard releases a chart that shows what $10,000 invested over 30 years would look like.
As you can see, this period includes multiple recessions, conflicts and changing political administrations. But from a market perspective, you would have gained financially if you bought and held stocks.
Different online share trading platforms come with a range of different features and markets they'll let you invest in. As such, you should carefully consider your needs and objectives before signing up. For example, if you want to buy Australian shares, you'll need to open an ASX share trading account. If you want to buy US stocks, you'll need a platform with access to Wall Street.
Some of the main things to consider include the following:
Investors should prioritise simplicity, security and cost-effectiveness when choosing a trading platform... Finally, make sure the platform has an AFSL (Australian Financial Services Licence) for that peace of mind that it is being regulated by ASIC.
Chris Brycki
Founder, Stockspot
The exact process for opening a share trading account varies depending on the trading platform you select. However, you'll generally need to complete the following steps when signing up:
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Follow these tips to find the best share trading platform for you.
I am not an Australian , How can T open An trading Account ?
Hi Chau,
Thank you for reaching out to finder.
This depends on the share trading platform you select. Some are only open to Australian residents while others accept customers from all over the world. You may check this by going to the share trading platform’s website and looking for the requirements necessary in creating an account. Hope this helps!
Cheers,
Reggie
When setting up an online trading account, does the funding account have to be in your own name or can it be a nominated third party’s account, eg a partner or a parent?
Thanks
Hi Rachel,
Thanks for your inquiry.
If you wish to apply with your name and someone else, e.g. your partner, you can apply for a joint account. Please note that the steps may vary slightly depending on the broker of your choice.
Cheers,
Rench