Best Share Trading Platforms in Australia 2024

Thadeus Geodfrey is an experienced and celebrated writer and self-taught trader specialising in cryptocurrencies and forex. Market analysis, identifying fraudulent brokers, and security are his cup of tea. At BrokerRaters Thadeus develops educational materials and user-guides, offer market insights, ensures our content conforms to the best standards. Join Thadeus to succeed in your trading endeavours.

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Cherry-picking the best share trading platform in Australia can be daunting amidst a forest of brokers screaming for your attention. It’s easy to fall for a non-regulated broker or one that doesn’t fit your trading style, experience level, and financial goals. In fact, some Australians lost over $8 million to online trading scams in 2023. 

But don’t worry – we have assembled top platforms to help you trade like a pro. This article also dives into share trading, how it works, and common pitfalls to avoid. Furthermore, you’ll weigh some of its pros against cons to decide whether it’s the right investment vehicle for your money.

List of the Best Share Trading Platforms

  • Pepperstone Best Overall Share Trading Platform in Australia
  • Plus500* Best CFD Share Trading Platform in Australia
  • eToro Best Share Trading Platform for Investment Enthusiasts
  • FP Markets Best Share Trading Platform for Advanced Traders
  • AvaTrade Best Share Trading Platform for Beginners

Note: 82% of retail investor accounts lose money when trading CFDs with this provider.

In This Guide

Australian Share Trading Platforms: Comparison Table

Just conduct an online search for the “best share trading platforms in Australia.” You will see many providers that promise gold. But how sure are you that they would stick to their words instead of delivering dust? 

And since time is money, it’s tempting to hurriedly skip the necessary research homework and pick one of them. Don’t worry – our seasoned pros have done the job for you! We thoroughly vetted all the platforms in the country before narrowing down to the best five. We further analyzed the chosen providers to determine the winner. 

Let’s start with a brief comparison table:

Best Share Trading Platform AustraliaLicense & RegulationSupport ServiceSoftwarePayment MethodDemo Account
PepperstoneFCA, ASIC, DFSA, CySEC, CMAK, SCB, BaFin24/7TradingView, MT4, MT5, cTrader, Pepperstone Trading Platform, Social tradingPayPal, Visa, MasterCard, Bank TransfersYes
Plus500*

82% of retail investor accounts lose money when trading CFDs with this provider.

FMA, FSCA, CySEC, FCA, ASIC, MAS24/7Plus500 CFDVisa, MasterCard, PayPal, Skrill, Bank TransferYes
eToroFMA, FCA, CySEC, FSCA, ASIC, SFSA ADGM, MFSA, FSAS, GFSC, SEC24/5eToro investing platform and app, Multi-asset platform, Social Trading, Copy Trader, Smart PortfoliosCredit/debit cards, Bank transfer, Klarna, PayPal, Skrill, NetellerYes
FP MarketsCySEC, FCA, ASIC, FSCA 24/7MT4, MT5, cTrader, TradingView, WebTrader, Mobile Trading AppCredit/debit cards, Neteller, Skrill, Bank transfer, Google Pay, Apple Pay Yes
AvaTradeFMA, FCA, FSCA, CBI, CySEC, PFSA, ASIC, B.V.I FSC, FSA, ADGM, ISA24/5WebTrader, AvaOptions, AvaTrade App, Mac Trading, MT4, MT5, Automated TradingCredit/debit cards, Neteller, Skrill, Wire transfer, WebMoneyYes

Platforms Short Overview

Pay attention to a broker’s fees, even if they look negligible. Why would you trade on a platform that wastes much of your hard-earned money? Also, ensure you get access to a familiar trading asset. 

We have stitched together tables showing the fees and assets on the selected platforms. We strive to provide the latest figures so you can stay on top of your game. 

Fees

Best Share Trading Platform AustraliaMinimum Deposit RequirementCommission/ SpreadsDeposits/ WithdrawalsInactivity Fee
Pepperstone$0From 0.0 pipsFreeNone
Plus500*$100From 0%Free
$10 monthly

eToro$50From 0%$5 Withdrawal$10 monthly
FP Markets$100From 0.0 pipsFree$0
AvaTrade$100From 0.9 pips
Free$50 after every 3 months of inactivity

Note: 82% of retail investor accounts lose money when trading CFDs with this provider.

Assets

Best Share Trading Platform AustraliaStocksForexCryptocurrenciesCommoditiesIndicesETFsOptions
PepperstoneYesYesYesYesYesNoNo
Plus500*YesYesYesYesYesYesNo
eToroYesYesYesYesYesYesNo
FP MarketsYesYesYesYesYesYesNo
AvaTradeYesYesYesYesYesYesYes

Note: 82% of retail investor accounts lose money when trading CFDs with this provider.

Our Expert Opinion about Share Trading Platforms in Australia

Australia is home to diverse share trading platforms. Comparing them to find the right fit for your needs can be time consuming. But you can skip that step, thanks to our expert research.

We tested every platform in Australia based on crucial factors, such as regulatory status, security, fees, payment methods, demo accounts availability, and assets. We also looked into reviews left on Google Play, App Store, and Trustpilot to ensure you get unbiased information.

The following platforms emerged to be the best one in Australia from our professional study.

1. Pepperstone – Overall Best Share Trading Platform in Australia

Our expert analysis crowned Pepperstone the best share trading platform in Australia, thanks to its robust blend of trading tools, affordable fees, and extensive market access. Since its inception in 2010, the platform has spread its wings to claim its space in the trading world, carving out a name for its competitive spreads and wide range of financial instruments. In fact, you can trade CFDs on over 1200 instruments, including shares, commodities, forex, and indices. 

Versatility is a crucial factor to consider in the world of share trading. Pepperstone delighted us by allowing integration with MetaTrader 4, MetaTrader 5, cTrader, and other trading platforms alongside its proprietary app. All these environments have sleek designs, allowing you to enjoy ease of use and diverse functionalities.  

The platform also has various accounts: Razor, Standard, and Active Trader. The Razor account’s pricing is commission-based, while the Standard account is commission-free. You need at least 100 lots over a 3-month period to be accepted into the Active Trader account. 

You can trust Pepperstone’s safe trading experience. It has a robust regulatory framework under ASIC and other reputable licensing bodies in the industry. Plus, its 24/5 customer support helped us solve a deposit issue. 

Pepperstone

✔24/7 support service
✔User-friendly and navigable platform

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2,817 User Reviews
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1 User Reviews
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7,298 User Reviews
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Trading Assets

Pros

  • There are no inactivity fees, and it has low spreads
  • Access to MT4, MT5, and cTrader
  • A broad range of assets, such as forex, commodities, and stocks
  • $0 minimum deposit requirement
  • Free withdrawals and deposits

Cons

  • Limited access to options and ETFs
  • Lacks proprietary platform for starters

We find Pepperstone broker to be one of the brokers with transparent fee structures. There are no hidden charges, so what you see displayed on its platform is what you will incur. This makes it easier for you to budget without worrying about overspending.

Let’s discover below some of the trading and non-trading charges at Pepperstone.

Trading and Non-Trading Charges Details
Account Opening $0
Management Fee $0
Minimum Deposit Requirement From $0, depending on your jurisdiction
Commission From $0.02 on US-listed shares
Spreads From 0.0 pips on its Razor Account
Deposits and Withdrawals Free
Inactivity None
Overnight Funding Varies based on global market conditions
Copy Trading Free

Note that Pepperstone charges both spreads and commissions. While spreads are charged on all accounts, commissions are only imposed on the Razor Account.

At Pepperstone, we discovered over 1,200 CFD and spread betting assets. The securities are in different classes, including shares, commodities, forex, indices, ETFs, and cryptocurrencies. Unfortunately, some assets like options are missing.

As we previously mentioned, there are two types of trading accounts, namely Razor and Standard, with which you can explore these securities. We also noticed that Pepperstone supports leverage trading on its featured securities. Retail traders will enjoy limits up to 30:1, while professionals are eligible for limits up to 400:1. This allows you to manage larger trades with a small capital, thus maximizing your chances of earning huge profits.

That being said, let’s break down the number of asset offerings at Pepperstone.

Asset Class Number Offered
Forex 97+ currency pairs
Shares 1000+
Indices 23+
Commodities 40+
Cryptocurrencies 30+
ETFs 48+

Disclaimer: Spread betting and CFD trading have the application of leverage attached to them. Therefore, while the activity can magnify your returns, losses are inevitable. To avoid incurring massive losses with CFD trading, understand how it works plus all the risks involved. Plus, only risk funds you are comfortable losing, considering that over 76% of retail traders lose money in this activity.

2. Plus500 – Best CFD Share Trading Platform in Australia

Contracts for Difference (CFDs) traders will fall in love with Plus500. This rich platform gives you access to more than 2,800 financial instruments, including indices, cryptocurrencies, shares, forex, and commodities. 

When testing Plus500, its low-cost trading environment is an advantage that stood out. You won’t pay commissions on trades, and the platform’s tight spreads start from 0 pips. Furthermore, it has flexible leverage options to allow you to boost your exposure with a tight budget. So, limited capital isn’t an excuse to enter the world of share trading. 

Plus500 also has a clutter-free interface, which allows you to kick-start your trading journey immediately. The platform has logically arranged menu items and categorized assets, making it user-friendly even for the newest traders. 

So, if you’re tired of platforms with unnecessary complexities, welcome here. The no-frills simplicity allows you to hop from a desktop onto your mobile without interrupting your trading. 

While Plus500 learning resources are limited, the available ones will boost your game. You can watch video tutorials or use its “Economic Calendar” to grasp significant concepts and catch the latest market events. And like other platforms on our list, Plus500 provides a demo account for beginners

Customer support is another area where the platform scores big points. Its round-the-clock live chat and WhatsApp channels ensure you get real-time answers to your issues wherever you are. You can also visit their comprehensive FAQ section on their website or email them your concerns.

Note: 82% of retail investor accounts lose money when trading CFDs with this provider.

Plus500

✔Easy-to-use trading platform
✔No hidden charges

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82% of retail investor accounts lose money when trading CFDs with this provider.
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117,720 User Reviews
Pros & Cons
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Trading Assets

Pros

  • Access to 2800+ CFDs, including cryptocurrencies, forex, and shares
  • Intuitive platform
  • Zero commissions and low spreads
  • Secure, ASIC-regulated trading environment
  • Superb risk management features, such as guaranteed stop-loss orders

Cons

  • It doesn’t support external platforms such as MT4/5
  • Inactivity charge that springs into action after three months

Many traders prioritize brokers they can afford. Since fees vary with a broker, we decided to go through Plus500’s fee structure. Here are some of the trading and non-trading charges to expect when you commit to this broker.

Trading and Non-Trading Charges Details
Account Opening $0
Minimum Deposit Requirement $100
Commission $0
Spreads From 0.0 pips on major currency pairs
Deposits and Withdrawals $0
Inactivity $10 monthly
Currency Conversion Up to 0.7%
Overnight Funding Varies based on trade size

From our analysis, we discovered that the Plus500 trading platform lists over 2,800 assets. These assets are spread across various classes, including forex, shares, indices, commodities, cryptos, options, and ETFs. For most regions, Plus500 supports CFD trading across the featured assets. Real stock trading is available on the Plus500 Invest platform, while futures trading is only available for US citizens on the Plus500 Futures platform.

Let’s break down the number of Plus500 product selections.

Asset Class Number Offered
Forex 60+ currency pairs
Shares 1900+
Indices 29+ global stock indices
Commodities 24+
Cryptocurrencies 19+
ETFs 96+

Note that options trading at Plus500 is offered on a few stock CFDs and stock index CFDs. Thematic indices like the Cannabis Index are also available for traders.

Disclaimer: CFD trading is complex and highly risky, considering the application of leverage attached. We have witnessed over 76% of retail traders lose their money in CFD trading. It may not be a suitable activity for you. Therefore, ensure you understand how CFD trading works and the risks involved. 

3. eToro – Best Share Trading Platform for Investment Enthusiasts

Are you an investment enthusiast who’s been hunting for a platform with community vibes? eToro is your best stop. 

Social trading is where this platform shines the most. You can copy successful investors to sharpen your trading strategies and become the next big guru in Australia. 

And regardless your trading prowess, eToro’s education section will cater for your learning needs. Newbies can glean insights from its rich video tutorials, stepwise trading courses, and webinars. You can also visit its blog for updated insights, market analyses, and trading tactics. Do you want to exercise your trading muscles without burning any coins? The platform’s virtual portfolio welcomes you. Once you’re ready to dip your feet in the world of trading shares, you’ll likely find whatever asset you desire on it. In fact, our expert research found that it offers more than 6,000 trading instruments, including real stocks, ETFs, CFDs, and cryptocurrencies. 

We also found the platform’s fee structure transparent and friendly to cost-conscious traders. It charges primarily through spreads, and stock trades are commission-free. But you must note its charges on non-trading actions, such as withdrawal and inactivity fees. For example, you’ll have to cough up some dollars if you don’t log into the system within one year.

Thanks to its wide range of channels, eToro’s support team is a few clicks away. The dedicated help center provides answers to FAQs. But if your query is more specific, they have a ticketing system that allows you to reach the customer support agents. 

Another excellent feature we loved is eToro’s intuitive, community-focused, and aesthetically pleasing interface. Once you log in, you can seamlessly navigate to an asset, visit your portfolio, start copying gurus, and do more. The mobile app has all the features you need to trade on the go. 

With its strong emphasis on social interaction and user-friendly tools, eToro is truly one of the best investment platforms available today.

eToro

✔ User-friendly trading platform
✔ Over 6000 trading instruments

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{etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider.
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5 User Reviews
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142,000 User Reviews
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31 User Reviews
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Our Rating
Total Rating:
142,036 User Reviews
Pros & Cons
Fees
Trading Assets

Pros

  • Social trading feature to get insights from successful players
  • More than 6,000 assets, including cryptocurrencies, ETFs, and real stocks
  • Commission-free trading on ETFs and stocks
  • User-friendly and community-focused interface
  • Add one more pro

Cons

  • Higher Forex pairs’ spreads than other platforms
  • High inactivity charges

eToro has a transparent fee structure that is easy to understand and helps you plan accordingly. From our analysis, we discovered the following trading and non-trading eToro fees.

Trading and Non-Trading Charges Details
Account Opening $0
Management Fee $0
From $50, depending on your jurisdiction 0.6
Commission From 0% on stocks and ETF trading
Spreads From 1 pip on major currency pairs
Deposits and Withdrawals $5 withdrawal
Inactivity $10 monthly
Currency Conversion 1.5% or 3.0%, depending on the currency or payment method
Overnight Funding Varies based on global market conditions
Copy Trading Free

We discovered that eToro allows users to trade and invest in global markets. You can go long or short in a single portfolio. Overall, there are more than 6,000 instruments, which are spread across multiple classes. Investment options are stocks, which allow you to buy and take ownership of global stocks across various sectors. Fractional share purchases are also supported at eToro. This will enable you to fill your portfolio with leading stocks from global exchanges. ETFs are also other investment assets at eToro.

When it comes to CFD trading, this broker offers it with flexible leverage limits for both new and professional traders. From our experience, retail traders get up to 1:30 leverage limit and professionals up to 1:400. With CFD assets, you can go long or short and speculate on both rising and falling asset prices.

That being said, here is the number of tradable assets available at eToro.

Asset Class Number Offered
Forex 55+ currency pairs
Shares 5558+
Indices 21+
Commodities 35+
Cryptocurrencies 100+
ETFs 680+

Note that eToro also supports options trading but is limited to US clients only. You can also explore diverse non-fungible tokens (NFTs) via its Delta platform.

Disclaimer: CFD trading is risky and complex, thus not suitable for all types of traders. This is primarily due to the application of leverage attached, which can give you good profits as well as leave you with massive losses. So far, over 76% lose their money in CFD trading. That is why it is important to conduct extensive research and understand CFD trading risks before you invest your money in it.

4. FP Markets – Best Share Trading Platform for Advanced Traders

If you’re a seasoned trader looking to diversify your portfolio with advanced tools, consider FP Markets. The platform has over 10,000 assets, including commodities, forex, stocks, and ETFs. 

It also supports traditional third-party platforms like MT4, MT5, and IRESS. For high-frequency traders, FP Markets provides a raw account with spreads starting from 0 pips. 

The platform offered a plethora of features during our trading journey. For instance, we could receive real-time push notifications regarding changes in the market, price, and account. The Trend Exploration Tools allowed us to monitor market trends, possible reversals, and primary resistance levels. 

FP Markets platform knows that learning is a continuous process. Their Learning Centre covers everything from basic analysis to risk management and technical strategies to equip traders of all levels. You can also dive into their video content or webinars for a more interactive learning experience. Other features include Instrument-Specific Insights and Comparative Analysis, just to mention a few. 

Whatever your choice of device, FP Markets will cater to your needs. Its desktop version supports both Mac and Windows operating systems. You can also hop into its web-based version from any browser without installation. Want to trade from anywhere? Fish out your hand-held Android or iOS gadget to keep the trading going. 

The platform also provides live customer support from 9am-6pm. EST. But if an issue crops up beyond this time frame, you can always reach support via email or phone. They also have an ever-updated FAQ section on their website to quench your thirst for details. 

FP Markets

✔Low minimum deposit requirement
✔Hosts numerous learning and market analysis tools

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7,164 User Reviews
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0 User Reviews
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2 User Reviews
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Our Rating
Total Rating:
7,166 User Reviews
Pros & Cons
Fees
Trading Assets

Pros

  • Access to more than 10,000 trading instruments, including forex, stocks, and ETFs
  • Doesn’t charge deposits and withdrawals
  • A raw account with spreads from 0.0 pips
  • Advanced trading platforms like MT4, MT5, and IRESS
  • No inactivity fee

Cons

  • Higher charges for IRESS access
  • Limited advanced tools and learning materials

We reviewed the applicable FP Markets fees, and like that the broker has a transparent structure. This allows users to efficiently plan for their activities without worrying about incurring additional costs. There are no hidden charges and no price manipulation with this broker.

Trading and Non-Trading Charges Details
Account Opening $0
Management Fee $0
Minimum Deposit Requirement From $50, depending on your jurisdiction
Commission From 0%
Spreads From 0.0 pips on major currency pairs
Deposits and Withdrawals Free deposits. Withdrawal fees apply based on the payment method used
Inactivity $0
Overnight Funding Varies based on global market conditions
Copy Trading Free

There are more than 10,000 CFD instruments at FP Markets across various asset classes. These include forex, shares, commodities, cryptos, and more. The best element about exploring these securities is that you have access to multiple platforms to choose from. Whether you prefer the MT4, MT5, cTrader, or TradingView, FP Markets has it all for you. You are guaranteed quality resources to maximize your potential.

When it comes to leverage applications, FP Markets has favorable limits for all types of traders. Retail traders can get up to 30:1, while professionals get 500:1. Moreover, we discovered multiple account types to suit every trader’s needs.

Here is a breakdown of the number of assets you will trade at FP Markets Standard, Raw, and Iress accounts.

Asset Class Number Offered
Forex 70+ currency pairs
Shares 10000+
Indices 19+
Commodities 12+
Cryptocurrencies 12+
ETFs 46+
Bonds 2+
Futures 7+

Disclaimer: CFD trading is risky, especially with the application of leverage attached. While many traders earn good profits from it, it can leave you with massive losses should a trade work out against you. Therefore, start by understanding CFD trading and all the risks involved before venturing into such securities. Remember, over 76% of retail traders lose money in CFD trading.

5. AvaTrade – Best Share Trading Platform for Beginners

We highly recommend AvaTrade for beginner traders in Australia. Its beginner-friendly AvaAcademy offers self-paced learning regarding trading strategies, technical analysis, and the best forex trading app

The platform’s demo account comes with $10,000 to help you hone your skills before trading with real money. Furthermore, features like AvaProtect will safeguard your money against losses while trading. It’s also compatible with popular trading platforms like MT4 and MT5.

You’ll be ushered into a Retail Account when you first sign up. This level gives access to various assets, such as forex pairs, commodities, and precious metals. You can later advance to Professional Accounts for voluminous instruments and higher leverage. And if you’re a Muslim who desires to follow Sharia law, why not try its swap-free Islamic Account? 

While AvaTrade charges spreads on any instrument you trade, it provides commission-free trading. That means you can enter or exit trades on any asset without breaking the bank. However, a swap fee applies if your trade position remains open after closing, i.e., at midnight. It also charges inactive accounts after 12 months. 

AvaTrade

✔Regulated by FCA
✔The platform supports algorithmic trading

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8,869 User Reviews
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10,200 User Reviews
apple
25 User Reviews
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Our Rating
Total Rating:
19,094 User Reviews
Pros & Cons
Fees
Trading Assets

Pros

  • Rich educational resources
  • Access to MT4 and MT5 platforms
  • Free deposits and withdrawals
  • Unique AvaProtect to protect against loss
  • Access to major assets, such as stocks, forex, cryptocurrencies, indices, ETFs, and options

Cons

  • High charges on dormant accounts
  • Lacks 24/7 customer support

Our experts investigated the AvaTrade broker’s fees and charges. We first noticed that the platform has a modest minimum deposit requirement of $100. What’s more, its users pay no additional costs while depositing funds or cashing out. That makes AvaTrade an ideal broker for both cost-conscious and newbie traders who want to test their waters with small capital before going all in.

That said, AvaTrade requires dormant account holders to pay $50 after every 3 consecutive months of inactivity. Moreover, if you let your account remain inactive for over successive months of inactivity, the broker will charge you a $100 administration fee. Not to forget, AvaTrade requires traders who hold positions overnight to cover a premium.

Here’s a breakdown of the fees you should expect to encounter while trading with this service provider:

Fees and Charges Amount
Spreads From 0.9 pips
Administration fee $100
Inactivity fee $50
Overnight premium Yes

The AvaTrade trading platform’s users have access to over 1,250 financial instruments, from forex pairs and indices to commodities, options, ETFs, and more. Below is an overview of some of this service provider’s product offerings:

  • Forex: As an AvaTrade user, you can trade diverse popular currency pairs, like EUR/USD, CAD/JPY, and USD/TRY. You can also boost potential returns with leverage of up to 400:1.
  • Commodities: From crude oil to silver, corn, and platinum, countless commodities are available on the Ava trading platform. They have competitive spreads and juicy leverages for individuals who want to access larger positions with small capital.
  • Cryptocurrencies: With an AvaTrade account, you can trade crypto CFDs like BTC/USD, Ripple, and Bitcoin Gold. These assets have reasonable spreads starting from 0.10% over-market.
  • Stocks: Over 90 stocks are accessible on the AvaTrade platform, including popular products like Groupon, Apple, and Microsoft. You can trade such instruments and enjoy reasonable spreads starting from 0.13%.
  • ETFs: If you want to trade ETFs, AvaTrade has you covered. You’ll find numerous outstanding assets, such as the MSCI EAFE Index Fund, S&P 500 VIX Short-Term Futures ETN-Series B, and Energy Select Sector SPDR.
  • Indices: After opening an AvaTrade account, you’ll get uncapped access to US500, UK100, CHINA A50. The broker also allows index traders to enhance potential returns with up to 100:1.
  • Options: AvaTrade’s AvaOptions trading platform allows users to trade options. It’s also equipped with 13 strategies, including call spread, put spread, and straddle.

Share Trading in Australia

Share Trading in Australia

Australia’s stable economy and well-regulated financial markets continue to boost share trading. Various online platforms allow traders to access diverse company stocks listed on the Australian Securities Exchange (ASX). You can also purchase shares from international exchanges to diversify your portfolio, such as the New York Stock Exchange (NYSE), the London Stock Exchange (LSE), and NASDAQ.

ASIC oversees share trading in Australia to maintain market integrity. We assure you that all our carefully selected platforms are ASIC-regulated and operate under the body’s stringent regulations.

Regarding legality, the country allows residents and non-residents to trade shares. But you must be at least 18 years old to invest in shares. Does your minor desire to trade shares? They can only do so through a custodial account that you (the parent or guardian) manage.

The Australian Taxation Office (ATO) views profits from share trading as capital gains. So, you need to pay capital gains tax (CGT) on the returns based on your total taxable income and how long you held the shares before selling. Some good news: If you held these assets for at least 12 months, you’re eligible for a 50% discount on CGT.  

But before starting this wealth-creation journey, you must grasp share trading ins and outs:

What is Share Trading?

What is Share Trading?

Share or stock trading involves buying and selling companies’ shares on the stock market. Purchasing a publicly traded company’s shares essentially gives you a small ownership stake. Your share’s value can rise or drop depending on various factors, including the company’s performance or market trends. 

Share trading occurs through stock exchanges like the Australian Securities Exchange (ASX). This organization houses a diverse range of companies, from emerging SMEs to giants like Commonwealth Bank. 

You can trade shares to diversify your portfolio, generate an income through dividends, or for capital appreciation. But as you hunt for substantial returns and profits, remember that this investment comes with risks. That’s why our experienced experts are here to hold your hand. 

How Does Share Trading Work?

You’re just a few steps away from trading shares on your chosen platform. But remember to trade carefully! Here we go:

  1. Set up a trading account: Opening an account with an online broker is a breeze. Once you submit your personal and identification details, you’re good to go.
  2. Fund your account: The second step is to deposit the funds into your account. Check the lowest amount on your chosen platform, as it often varies with platforms. 
  3. Research and cherry-pick shares: This is a crucial step. Analyze a company’s financial position and market trends before buying its shares. 
  4. Place a trade: Have you identified promising shares? Awesome. You can buy them at the existing price or set a limit order to purchase them when they hit a specific price. 
  5. Track your investment: Due to the ever-changing nature of share prices, share trading isn’t a set-once-and-forget homework assignment. A great platform should have real-time data, charts, and news updates to help you stay abreast of any changes and act accordingly. 

You can also sell your shares to a willing buyer at any time. Your selling price should be higher than the buying price to enable you to make a profit. 

How to Choose the Best Share Trading Platform

Your success story starts with the right share trading platform. Consider these players to inform your investment decision:

Fees and commissions
Ease of use
Research and tools
Regulation and licensing
Customer support

Costs can accumulate and eat into your profits. Before signing up, consider the platform’s different fees, including brokerage and maintenance charges. Watch out for fees on non-trading activities, such as withdrawal, deposit, and inactivity charges.

A clunky or cluttered platform can easily frustrate any beginner or seasoned trader. So go for a user-friendly one that offers seamless navigation and trading. Be sure you can switch from your desktop to mobile experience without stress.

Continuous learning boosts your odds of scooping profits in share trading. Ensure your platform houses educational resources, research reports, and analysis tools. That way, you’ll always be ahead of the industry trends, company performance, and the latest trading tricks.

Security is a significant factor in any trading. You want to ensure your funds, personal details, and trading activities will be safe on the platform. Therefore, if the platform isn’t regulated by ASIC or other reputable regulatory bodies, flee without looking behind.

Even on the best platform, issues with your account or trades are bound to crop up. That’s where a professional customer support team should come in to save the day. A serious platform has many support channels, such as live chat, email addresses, phone numbers, and FAQ sections.

Share Trading Risks

Sure, you can get high returns from your share trading. But consider significant risks. The last thing you want is to see your investment and profits hijacked by an overlooked event. Here are some of them:

  1. Market volatility

Share prices are highly volatile – they can be low now and high within the next few minutes. You can suffer a massive loss if the market shifts against your position.

  1. Company performance

Your shares’ value depends heavily on the underlying company’s performance—poor performance results in a drop in shares, which can lead to losses.

  1. Economic factors

The company and traders don’t exist in isolation. Uncontrollable external factors like inflation, interest rates, unemployment, and global events can threaten the Australian economy, resulting in a widespread plummeting of share values. 

  1. Liquidity risk

A company’s shares may be less liquid, especially if it’s still tiny. If you own such a share, selling it at your desired price can be difficult. 

  1. Leverage

Does a platform offer leverage? You can grab it to trade with borrowed funds and potentially increase returns. However, leverage can lead to more significant losses than if you traded with your initial investment. 

Pros & Cons of Share Trading

You need to weigh the pros and cons of share trading before venturing into it. We have highlighted the most common ones:

Pros:

  • High returns potential: If the underlying company and the economy look promising, you can bag significant profits.
  • Diversification: You can invest in diverse industries, companies, and regions to reduce risks
  • Ownership and dividends: It may provide a regular income as company dividends. Plus, you can exercise voting and other ownership rights in the company.
  • Accessibility: The platform is accessible from any internet-enabled device. With the often low minimum deposits and user-friendly interface, there are no barriers to entry.

Cons:

  • Risky: Share trading can gulp up your money in case of a sharp decline in share value.
  • Time-consuming: You must research market trends and company events to ensure you’re on the right track. 
  • Costs: Maintenance, brokerage, and other fees can quickly add up and reduce your returns.
  • Emotional stress: Downturns can cause stress. To stick to a trading strategy, it helps to have a strong mindset and resilience. 

Conclusion

Your share trading success story starts with the platform you choose. According to our professional research, Pepperstone stood out as the overall best share trading platform in Australia. You can also try Plus500, eToro, FP Markets, and AvaTrade for their distinctive advantages. 

But before picking a broker platform and running with it, consider their fees, tools, support, and other factors to ensure they align with your needs and goals. Now, it’s time to start trading with confidence!

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Thadeus Geodfrey

Thadeus Geodfrey is an experienced and celebrated writer and self-taught trader specialising in cryptocurrencies and forex. Market analysis, identifying fraudulent brokers, and security are his cup of tea. At BrokerRaters Thadeus develops educational materials and user-guides, offer market insights, ensures our content conforms to the best standards. Join Thadeus to succeed in your trading endeavours.

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