Investing In Shares

How to Start Investing in Australian Shares

Investing in shares is no longer limited only to those with a large enough bank balance to be able to afford the commissions of a stock broker. These days, with not much more than a few hundreds dollars and an internet connection you can buy your first shares.

Investing in Australian Shares

The first thing you require is a stock broker (or an online brokerage account), of which there are dozens to choose from.

Many retail investors prefer using one of the brokerage platforms offered by their banking institution like Commsec, eTrade, NabTrade, etc but if you are looking to take your investing a little more seriously (ie managing a larger portfolio, trading more frequently or using alternative products like options or CFDs) then some of the non-bank online broker platforms offer a competitive alternative, like Interactive Brokers, CMC Markets, CitiIndex, etc.

Most brokers have their different strengths and weakness, the banking brokers link in easier with you banking services, some offer cheaper trades but less features, others offer more customer support but at a higher costs..

Like most things in life, you get what you pay for and which broker to go with is It’s really down to what you are looking to do.

Most first time investors are probably best off starting out with a brokerage account link to one of the big four banks.

I personally use Interactive Brokers as it offers lower cost trades and a better suit of products to trade with, but I also very happily used eTrade and CommSec for years.

Once you have a online brokerage account, it’s simply a case of funding it and making the tougher decision of which company shares to buy…

The are countless theories on how to best invest your money, but a lot of which company to buy comes down to what you are looking to achieve with your investments.

Some people like to get stock tips from their friends, some like to read about companies in the news, some like to fundamental analysis of the companies and their financials, some like to pick stocks base on techincals and people like buys that have recently moved up or down.

Which theory is best is VERY debatable and I’ll save my thoughts on that matter for another post.

 

 

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