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How to open a share trading account

How to choose the best share trading account for your needs and start investing in Australian and international markets.

Tim Falk
Tim Falk

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If you want to invest in shares, you'll need to sign up to a stock broker. You have two choices here – you can hire the services of a traditional full-service broker or you can do the trading yourself through an online broker (aka share trading platforms).

Online brokers allow you to buy and sell shares in publicly listed companies over the Internet. 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.

This guide allows you to easily compare online share trading accounts, and takes you through the steps involved when choosing a platform.

Steps to open a trading account

  1. Choose a broker
  2. Select your membership level
  3. Provide ID
  4. Link bank account
  5. Submit application
  6. Start trading

Share Trading Account Offer

IG Share Trading Offer

AUD 5

Active trader brokerage - Australian shares

Share Trading Account Offer

Competitive broker fees on Australian shares, international shares, forex and CFD trading.

  • Brokerage - AU shares: From AUD 5 or 0.05%
  • Brokerage - US shares: USD 0
  • Sign-up process: Instant
  • Support - After hours: Yes
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Important: Share trading carries risk of capital loss.

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Data indicated here is updated regularly
Name Product Standard brokerage fee Inactivity fee Markets International
IG Share Trading
Finder Award
IG Share Trading
AUD 8
AUD 50 per quarter if you make fewer than three trades in that period
ASX shares, Global shares, Forex, CFDs, Margin trading
Yes
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, forex and CFDs, plus get access to 24-hour customer support.
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More Info
eToro Share Trading (US stocks)
Finder Award
eToro Share Trading (US stocks)
USD 0
USD 10 per month if there’s been no login for 12 months
Forex, CFDs, US shares
Yes
Zero brokerage share trading on US stocks with trades as low as $50.
Note: This broker offers CFDs which are volatile investment products and most clients lose money trading CFDs with this provider.
Join the world’s biggest social trading network when you trade stocks, commodities and forex from the one account.
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More Info
Superhero share trading
Superhero share trading
AUD 5
No
ASX shares
No
Pay zero brokerage on all Australian ETFs.
Trade ASX stocks with a flat $5 commission fee and a low minimum investment of just $100.
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More Info
Bell Direct Share Trading
Finder Award
Bell Direct Share Trading
AUD 15
No
ASX shares, mFunds
No
Invest in Australian shares, options and managed funds from the one account with no inactivity fee.
Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.
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More Info
CMC Markets Stockbroking
Finder Award
CMC Markets Stockbroking
AUD 11
No
ASX shares, Global shares, Forex, CFDs, Margin trading, Options trading, mFunds
Yes
$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 9,000 products, including shares, managed funds, forex, commodities and cryptocurrencies, plus access up to 15 major global and Australian stock exchanges.
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More Info
ANZ Share Investing
ANZ Share Investing
AUD 19.95
No
ASX shares, Global shares, Options trading, mFunds, ETFs, Warrants
Yes
Earn 1 Qantas Point per AU$3 spent on brokerage fees on certain instruments.
Access Morningstar reports, company announcements and and live pricing via ANZ’s share investing platform. Available for desktop and mobile.
More Info
Westpac Online Investing Account
Westpac Online Investing Account
AUD 19.95
AUD 63.50 per year on the global markets account
ASX shares, Global shares, Options trading, US shares
Yes
More Info
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Important: Share trading can be financially risky and the value of your investment can go down as well as up. “Standard brokerage” fee is the cost to trade $1,000 or less of ASX-listed shares and ETFs without any qualifications or special eligibility. If ASX shares aren’t available, the fee shown is for US shares. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Why trade shares online?

When people think of share trading, many still imagine a crowded and chaotic trading room floor. The reality is that thanks to modern technology, the vast majority of share trading is done online. According to a report from Investment Trends, the number of active Australian online share investors grew from 595,000 in November 2014 to 635,000 in May 2017.

Trading shares online offers a secure and easy way to manage your investments. You can place trades at a time and place convenient to you, while buying and selling shares offers the potential to benefit from share price increases and also enjoy an income from dividend payments.

There are of course risks attached to trading shares, including the potential to lose the money you invest, so it’s important to make sure you’re aware of those risks before you start trading.

See the finder.com.au share trading guide.

How do I choose an online share trading platform?

You'll need to carefully consider your trading needs before deciding on the right online share trading platform. Some of the issues to consider include:

  • Trading knowledge and experience. Some online share trading platforms, for example CommSec and SelfWealth, are designed to suit retail investors, rather than institutional investors and traders. Other trading platforms have special features geared towards highly experienced traders, such as advanced charting tools, speedy execution of trades and live market data. These features may come at a cost, however, and may not add much value if you are a less experienced trader.
  • Available markets. Some share trading platforms only provide access to companies listed on the Australian Securities Exchange (ASX) while others will also allow you to place trades on international markets. Some trading platforms will also provide access to other trading instruments, for example forex and contracts for difference (CFDs).
  • The fees involved. There are two main costs you need to consider when choosing a share trading platform: the brokerage fee and the ongoing fee. The brokerage fee applies each time you place a trade and is usually around $10-$25, but could be higher based on the size of the transaction. Ongoing subscription fees are charged monthly and vary depending on the provider and the account features you select.
  • Trading resources. From educational tutorials to research and investment advice, check what tools a platform offers to help you make informed trading decisions.
  • Customer service. If you ever have a problem or need help with a trade, check to make sure you will be able to access prompt and helpful customer support.

How to open a share trading account

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:

  1. Choose your broker. Research a range of options to find the online stockbroking provider that offers all the features you want at an affordable price. Some providers also offer a choice of share trading platforms, for example a free web-based platform for casual investors and a more complicated software package with a monthly subscription fee for experienced traders.
  2. Choose your membership level. Some providers offer a choice of membership tiers, each with a different level of features and a different ongoing fee. For example, you may need to choose between a Bronze, Silver or Gold trading account.
  3. Provide your details. You'll need to provide your full name and a valid form of photo ID, as well as your email address, phone number, residential address and Tax File Number (TFN).
  4. Link your bank account. You’ll need to supply details of the bank account which will be used to finance your trades and you may be required to deposit a minimum amount. Some share trading platforms will also require you to open a cash management account with a specific financial institution before you can start trading.
  5. Submit your application. Your application to open a share trading account will usually be processed within 1-2 business days.
  6. Start trading. Once your application has been approved you can login to your account and start trading.
It’s also worth pointing out that it can be a lot easier to open a share trading account if you're an existing customer of the same financial institution; for example if you’re a CommBank customer opening a CommSec share trading account. In this case, you won’t have to provide your name, contact information or proof of ID.

Did you have these enquiries about opening a share trading account?

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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4 Responses

    Default Gravatar
    ChauDecember 1, 2018

    I am not an Australian , How can T open An trading Account ?

    Reply
      Avatarfinder Customer Care
      JohnDecember 6, 2018Staff

      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

      Reply
    Default Gravatar
    RachelJune 16, 2017

    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

    Reply
      Avatarfinder Customer Care
      RenchJune 17, 2017Staff

      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

      Reply
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