You could save $1,046 a year on average in brokerage fees by switching to a more suitable online broker, according to Finder research. You might even save money by having more than one platform, especially if you are investing both in Australia and internationally.
Looking to stock up on good quality companies during the market volatility? With the COVID-19 pandemic likely to have a long-lasting impact on global economies, it's not easy picking which companies are the best investments for 2020 – or which should be avoided.
So we spoke to stock analysts Michael Wayne from Medallion Financial and Bell Direct's Jessica Amir to get their views on which stocks are worth considering over the next 12 months.
Remember! Stocks are risky and unpredictable – a stock that's right for one person, might not be the best choice for you. That's part of what makes investing in the stock market both challenging and exciting!
Bargain buys
During a major stock market crash, most company shares will fall, so savvy investors will be looking to scoop up good quality stocks at discount prices. According to Wayne, some of these top bargains are likely to be found in the financial and travel sectors.
He told Finder investors should look out for quality financial businesses that have seen prices fall over 30% from their heights as well as travel-related companies that are expected to recover once quarantine measures lift.
"Financial market facing businesses get hammered during periods of market turmoil. Once trading conditions normalise, prices tend to stabilise and recover quickly."
Investors should prepare for the possibility of an extended recession according to Amir. If we do see a deep global recession, consumer staple companies such as food and beverage retailers are expected to be among the safest.
"Thinking about what’s needed regardless of economic growth slowing, regardless of Coronavirus (which will pass)," said Amir.
"Take note of the good news that is coming out amid corona. Who is staying on track to meet their earnings forecast and why?"
For our top picks, we compared our Finder partners using a proprietary algorithm in 2023. Keep in mind that our top picks may not always be the best for you. You're encouraged to compare for yourself to find one that works for you. Read our full methodology here to find out more.
Magellan is an Australian funds management firm that offers investment funds to retail and institutional investors primarily in Australia and New Zealand.
IDP Education is an educational sector business engaged in the placement of international students into universities and schools in Australia, US, UK, Canada and New Zealand.
Consumer services and educational sector business
Stocks that rely on travel expected to rise once quarantine ends
Woolworths Group operates major consumer stores and supermarkets in Australia, New Zealand and India. Along with Big W stores and Woolworths supermarkets, it operates food, beverage and hotel segments.
Food and retail sector stock
Supermarket and staple food stocks typically well placed to weather a recession
Trading 19% below February peak (April 10, 2020)
Fully franked annual dividend of $1.03 per share (2019)
Coles Group is an Australian company that operates supermarkets and retail stores. Its business segments include Coles Supermarkets, Coles Liquor, Flybuys, Coles Financial Services and Spirit Hotels.
Food and retail sector stock
Supermarket and staple food stocks typically better placed to weather a recession
Trading 8% below February peak (April 10, 2020)
Last paid dividend was $0.3/per share (fully franked) on February 27, 2020
Major Australian retail and supermarket conglomerate better known for its businesses such as IGA, Mitre 10, Timber & Harware and liquor chains including Cellarbrations, IGA liquor and The Bottle O.
Food and retail distribution sector stock
Supermarket and staple food stocks typically better placed to weather a recession
Trading 15% below March peak (April 10, 2020)
Annual dividend of $0.13/per share fully franked (2019)
Major Australian telecommunications company and provider of mobile and fixed broadband, pay TV and digital content services.
Major telecommunications sector stock
Staple blue chips such as major telcos expected to better weather a recession
Trading 19% below Janurary peak (April 10, 2020)
Annual dividend of $0.1/per share (2019)
10. The Reject Shop (ASX:TRS)
The Reject Shop is an Australian retailer of discount variety merchandise, including toiletries, homewares, personal care products, household cleaning products, kitchenware, leisure items and snack foods.
Retail trade and specialty store company
Discount stores often viewed as "recession-proof"
Trading 40% below January peak (April 10, 2020)
Reports it has started to receive stock again from Chinese suppliers and its sales are up 6% in second half so far (April 10).
Buy shares through an online broker
To buy shares you'll need to find a broker. You can use the table below to compare online brokers (also known as share trading platforms) available in Australia.
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.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
Image source: Getty
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. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
Kylie Purcell is the senior investments editor and analyst at Finder. She has completed a Certificate of Securities and Managed Investments (RG146) and specialises in investment products including online brokers, robo-advisors, stocks and ETFs.
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