Chapter 4Choosing an online broker
In previous chapters I outlined useful online share investing resources and the advantages and disadvantages of trading online. In this chapter I discuss the costs involved and resources available when using the services of online brokers operating in Australia. This will help you to make an informed decision about how to choose a broker that best fulfils your requirements. In the next chapter I discuss how you can set up with your broker of choice so you can trade online with them.
If you're already trading online you can use this chapter to widen your horizons and perhaps register with another online broker that offers additional benefits. Usually there's no cost involved in becoming a customer with an online broker, so it's not a problem to use different brokers for online trading provided you sell shares in a stock with the same broker you initially used to purchase them.
The cost factor
Brokers (both online and offline) most often have a brokerage fee structure (including GST) with a minimum charge in the form of a flat fee for smaller parcel values until you reach a threshold, after which the brokerage is proportional to the parcel value. Sometimes there's a tiered threshold parcel value — for example, one fee for parcels up to $1000, another ...
Get Online Investing on the Australian Sharemarket, 5th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
