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Getting
A Broker
What Is a Broker?
'A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members.
Brokers provide that service and are compensated in various ways, either through commissions, fees, or through being paid by the exchange itself.'
- Investopedia
Simply put, you cannot buy/sell securities in a market without a broker.
A broker is licensed to provide you brokerage services, enabling you to buy/sell securities through them.
Brokers often provide their own online trading platforms to their clients. This means you can directly use a broker's online trading platform to execute your own trades.
A broker can also provide phone services, where you lodge a trade with the broker through a phone call. The broker then executes the trade for you. The cost of phone brokerage is considerably higher than executing your own trades via their online trading platforms.
Look for a broker through your bank
Look for a popular online broker platform provider
Apply for a brokerage account
Go to the website of the broker and start applying
Familiarise yourself with the platform
Play with the platform and its functions before committing serious capital
You can use as little as 10 dollars to try the platform out
Execute your trade
Make your trade on the online trading platform of your broker
or lodge a phone trade with your broker
Look for a broker through your bank.
Look for a popular broker online.
A simple way to look for a broker is by looking at whether one of the big banks offer brokerage services. If you have an account with one of the banks, you may easily get a trading account with them.
COMSEC - Commonwealth Bank
NABTRADE - National Australia Bank
ANZ SHARE INVESTING - ANZ Banking
WESTPAC SHARE TRADING - Westpac Bank
DIRECTSHARES - St. George Bank
BENDIGO INVEST DIRECT - Bendigo Ban
There are also many popular non-bank brokerage platform providers such as:
CMC MARKETS
IG INVESTING
INTERACTIVE BROKER
PLUS500
SAXO BANK
And many others...
BrokerChooser has good articles covering the topic.
Select a broker
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