Australia Brokers updating
Things to know before choosing Brokers
Before choose which Brokers app you will use. You must understand what kind of trader you are.
What’s your trading style?
There are three types of trading styles.
Casual traders
If you buy or sell shares once or twice a month (or even less), you’re a casual investor. You may want to avoid brokers that have an inactivity fee or charge higher broker fees for less frequent trades.
Active traders
If you intend to buy and sell shares multiple times in a day, you’re an active trader. You’d want to look for platforms that offer low brokerage for high-frequency trading and an extensive range of trading features, such as charting tools and order options
Long-term investors
Investors use the “buy and hold” strategy by targeting quality companies they think will rise over a long time frame and possibly offer dividends. They may only buy and sell a few times in a year. Investors may find the inactivity fee more important than a stock analysis feature.
How to compare online brokers
Here are some of the key features to look at when comparing online share trading platforms:
- The broker fees. Almost every online trading platform will charge you a brokerage fee (also called a commission fee) when you buy or sell shares, ranging from around $10 to $30 per trade. These fees may be calculated as a percentage of the transaction amount for larger trades and may also be lower depending on how frequently you trade.
- Monthly fees. Some providers charge ongoing subscription or inactivity fees where you’re charged if you make too few trades. This will especially be the case where a platform offers an extensive range of features for advanced traders.
- What can you trade? Some trading platforms will not only give you access to Australian shares but also international shares. Others will also allow you to trade currencies, indices and much more, so look for this functionality if it’s important to you.
- Ease of use. Share market trading can be complicated and often requires you to respond quickly to market changes. With this in mind, look for a platform that allows you to make fast and precise trades with minimum fuss.
- Access to market data. Does the platform offer dynamic, real-time or delayed market updates? Some platforms offer research and broker analysis on individual stocks that can come in handy.
- Order types. Consider the options available when you’re buying or selling shares. Can you place orders at market and/or at limit and are other order types such as stop/loss orders an option to add more flexibility to your trading?
- Reporting. Check what reporting tools each platform offers to help you track how your trades are performing, record dividends and pass on any relevant information to the ATO at tax time.
- Customer support. Look for phone, email and live online chat support. Does it offer customer service 24/7 if you’re having trouble placing a trade?
- Education. Some platforms also feature a range of educational tools and resources, such as how-to guides and webinars, to help you get more out of your trading account.
- Security. How secure is the platform and what measures are in place to ensure the safety of your funds?
What fees will I pay to trade
Remember that many brokers offer different membership levels – for example, gold, silver and platinum – which offer different features and therefore attract varying fees.
- Brokerage fees. Brokerage fees (also called commission fees) are the charges that apply to each buy and sell transaction of stocks and ETFs. They usually vary depending on the size of your buy or sell order or how often you trade.
- Ongoing fees. These apply monthly or annually, but not all providers will charge ongoing fees. This may depend on how frequently you trade, for example, inactivity fees are often charged if you don’t place any trades within a certain period of time.
- Withdrawal fees. Some brokers charge a fee to withdraw money from your account.
- Foreign exchange fees. If you want to buy US or other global shares, you’ll need to pay an exchange fee when you deposit money into your account to convert your Australian dollars to the applicable currency.
Australia online Brokers
| Feature | CMC Invest |
|---|---|
| ASX Trades (Up to $1000) | $0 Limited to one buy order per day |
| International Trades | $0 in US, UK, JAP and CAD |
| Inactivity/Holding Fees | $0 |
| International Markets | 15 International markets |
| Feature | Standard | Alpha |
|---|---|---|
| ASX Trades (Up to $1000 per day) | $0 | $0 |
| Other buy orders | $11 or 0.10% | $9.9 or 0.075% |
| All sell orders | $11 or 0.10% | $9.9 or 0.075% |
| Feature | Superhero |
|---|---|
| Trading Account Brokerage (ASX) | No Charge on ETF purchases A$5.00 flat fee on all other trades including the sale of ETFs |
| Trading Account Fees | No Charge |
| Minimum Trade Size | A$100 |
| Bank Transfer Deposit Fee | No Charge Deposit into your Superhero Account/BSB |
