You've seen our Bell Direct advertisement and article in the Australian Immigration Book.
Now you're ready to investigate the online share trading scene in Australia to make sure you get the best service at the best price to suit your needs.
Have another read of the article from the Immigration Book below, or browse through the Bell Direct website.
Ready to start trading?
The Australian stockmarket is one of the most advanced markets in the world because it has full electronic trading capability. Unlike other markets around the world, like the US, Australia has one major stock exchange for listed entities - the Australian Securities Exchange (ASX). There are over 2200 listed companies to choose from in many different sectors including banking and finance, mining and industrials, just to name a few.
Because of the highly automated nature of the stock exchange in Australia, online share trading is very popular with around two million Australians using online brokers to buy and sell shares every year.
Online trading is a do-it-yourself way to invest in the stockmarket. All you need is a computer and an internet connection. Trading online tends to eliminate many hassles associated with investing:
To start investing online you need to open an online trading account by registering with an online share trading service provider...like Bell Direct! There are a number of online brokers in Australia to choose from and they all offer a range of prices and services. And of course Bell Direct is sure to suit your needs.
The costs
Generally, you can expect to pay anywhere from $15 (read here about Bell Direct prices) to $30 in brokerage for a transaction that is less than $15,000 in value.
Compare this with using a full service broker (who will provide you with their expert advice) and you can expect to pay around $150.
So you can see that online share trading could well be right for you if you're willing to do the research, make your own investment decisions and place the trades yourself.
With some online brokers, the services are bundled up in pricing. Other brokers, usually the less expensive ones, offer a more transparent pricing structure, so you will pay for what you use. (read here about Bell Direct prices)
Keep in mind that the cost of brokerage is important, because more you pay in brokerage, the more it will eat into your investments.
For example, independent researchers Canstar Cannex have found that frequent traders (trading up to 40 times a month) can save almost $10,000 a year if they trade using an inexpensive broker like Bell Direct.
The features
The next step in choosing a broker is to decide which features are most important to you and then match those to the online broker that offers what you need.
For example, you may think that research tools and services are not necessary for you, in which case you'll be heavily influenced by those offering the cheapest brokerage commissions (although with Bell Direct you get the best price AND innovative tools and services).
On the other hand, you may find that online tools, live market data and research services will save you time and money. Most online brokers offer these additional tools in varying degrees and the complexity of the underlying software may vary considerably, so again, it's worth shopping around to find what's right for you depending on the kind of trader you are.
New investors
If you're new to online trading, an online brokers' overall service (including their website features and their customer support team) will be a critical factor in your choice. A broker with highly rated customer service will help you as you get started, so it's important that you can access client support people on the phone at all times.
And while we're talking about the phone, your online broker should also offer features like an iPhone trading application so that you can trade whenever you need to. Your online broker should also offer SMS trading and telephone trading which is helpful when you are just starting out.
Long-term investors
If you're a long-term investor, the research tools on your online share broker's website should be an important factor in your choice.
Paying for additional research services or tools to help you review your portfolio will be valuable in the long-term, so you should really view these costs as an investment in your overall share trading success.
Research tools that might interest you include charting, portfolio management, company profiles, fund profiles and access to floats. You may also need assistance in interpreting available research information.
Be aware that some providers that purport to provide free research might not be telling the whole story. You will find you will get what you pay for and in some cases you will only get some of the information you need and will have to pay for additional (and often more valuable) components of the research you’re after.
Active traders
If you buy and sell shares at least once a week, finding a broker who offers the lowest brokerage should be your priority. Also consider additional costs, like charges to set up conditional orders (stop loss orders).
With Bell Direct, Australia's best priced online broker, setting up conditional orders is free, so you only pay brokerage once the trade is actioned.
You may also require easy access to time-sensitive information and software and frequent trader tools.
It is also important to make sure that the online broker you choose has a good client service record - this is crucial and could mean the difference between a profitable trade and losing money.
Arnie Selvarajah, Chief Executive Office of Bell Direct, says "We know that speed is a priority. That's why we're proud to be the only Australian online broker to offer a 2 second placement guarantee. That means, if your 'at market' order isn't placed on the ASX within 2 seconds, you don't pay any brokerage".
In summary, Australia provides a wealth of information and services to get you up and running to trade shares online. Who knows where the sharemarket will go in 2012 but if you're keen to trade, make sure you choose the right online broker for you.
Good luck and happy trading!