How to buy shares online in Australia?

There are plenty of ways to invest in shares, whether you have lots of money to throw down at once or you'd prefer to 'drip-feed' small amounts into a share over time.

How do I buy shares online in Australia?

You can buy shares either directly, by investing in individual companies, or indirectly by investing in a fund. Investing directly gives you complete control of which companies to invest in and when you buy and sell them. However, there is always a risk that individual companies will not perform as well as you hoped and you could lose money. Investing in funds is a way to reduce the concentration of risk because each fund holds a selection of different assets, although good returns are never guaranteed. Exchange traded funds (ETFs) are generally cheaper than other managed funds, because they aim to replicate rather than beat the performance of share indexes or other groups of assets.

Use the Australian Securities Exchange (ASX) find a stockbroker tool to locate a broker that suits your needs.

Do I need a broker to buy shares?

The most common way to purchase shares is buying them through an online broker such as CommSec. If you don't want investment advice, the cheapest way is through an online broker. Online stockbrokers are considered "execution only" and do not provide specific advice on what shares to buy or sell (although they provide access to company research and recommendations). You are required to place the trade yourself and know exactly which shares you want to buy and what price to pay. Some brokers also offer advisory services to help you decide which shares to buy and sell, according to your personal circumstances and needs. This service comes at a higher cost.

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