Australian Online Share Trading

Submitted by Share Trading on 13 August, 2009 - 11:42

There has been a trend for Australians keen for online share trading. As more and more Australians become more financially proficient, there are a group of traders who are risk takers who want to be actively involved in their shareholding portfolio. They are ready to join the market, forgoing the expense advice of a full service broker and utilising the services of many cheap online share brokers.

Back in 2002, Australian online share trading counted for 15 per cent of all sharemarket trading. CommSec was seeing 15,000 trades daily in April 2000 and 12,000-14,000 per month in early 2002. In 2002 it had 720,000 clients, or 42pc of the market, ahead of E*Trade which had 13 per cent and Westpac. Generally, traders have more than one account an average of 1.6 accounts each. In 2006, Commsec still the market leader for online share trading services was noted to generate about 15 percent of all the trades on Australian Stock Exchange.

Punters can buy and sell their stocks for less than $30 a turn - buy into blue chips like BHP Billiton, Commonwealth Bank, Woolworths and ANZ or they can speculate on mining stocks such as uranium mining. Online share trading can also now be accessible via laptop, mobile phone or applications on your iPhone. You don't need to trade straight away - setup your account, do your due dilligence and have your account ready to pounce on any opportunity you see which fits your profile.

What to Look for When Choosing an Australian Online Stockbroker

When you first start online share trading, its wise to shop around for a stockbroker which meets your needs. Look for one with good customer service, has an established reputation and who is financially secure. Look at the commissions per trade and other hidden administration and account fees. Examine what you get for what you pay and compare with other brokers. For those starting out, it is wise to choose a share broker which has excellent phone support and online educational and support libraries. Remember that online stockbroking is only a platform which provides you the system to trade and doesn't provide you with with advise, recommendations or extensive company research and information. Only these additional services are provided by full service brokers.

The Risks of Online Share Trading in Australia

However there are risks to consider when you choose undertake share trading activities in Australia. Share traders can get burned - as was the recent experience of those inexperienced traders who invested in BrisConnections. It was an online share trading disaster when they thought they caught on to a bargain with a 1 cent share when there was an underlying liability of $1 per share. Now, would-be share traders, day trading housewives and other investors are facing the legal threat of the ongoing debt recovery action currently in the courts. This whole debacle isn't a regular occurrence, but you must be aware of the risks involved when you do decide to step into the sharemarket.

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