How to buy and sell shares

Through an online brokerage account: An online brokerage account is an account that allows individuals to buy and sell shares, bonds and other financial products over the internet. These accounts are typically offered by financial institutions such as banks, stockbrokers and other financial firms. Online brokerage accounts are typically easy to open and can be done through an online application process. Online brokerage accounts come with a set of features, including online trading platforms and research tools that allow investors to buy and sell shares on the ASX and other global markets, track their investments and manage their portfolio. With an online brokerage account, investors can access their account 24/7 and make trades anytime, anywhere, as long as they have an internet connection. Online brokerage accounts are generally less expensive than traditional brokerage accounts, with lower fees and commissions.

Through a traditional broker: A traditional broker is a financial professional who helps individuals buy and sell shares, bonds and other financial products on stock exchanges such as the ASX and other global markets. Traditional brokers, also called full-service brokers, typically provide a range of services to their clients, including investment advice, research and portfolio management. To use a traditional broker, an individual typically needs to open a brokerage account with a financial institution that offers this service. Once the account is open, the individual can place buy and sell orders for shares and other financial products through the broker. The broker will then execute the trade on the individual’s behalf, charging a commission or fee for their services.

Through a financial adviser: A financial adviser is a professional who provides advice and guidance to individuals or organisations on financial matters, including investments. A financial adviser may recommend specific shares or stocks for their clients to purchase as part of their investment portfolio. These shares are typically chosen based on the financial adviser’s analysis of the company’s financial performance, management and industry trends, and other factors. Financial advisers may also provide ongoing monitoring and management of the portfolio to ensure that it aligns with the client’s investment goals and risk tolerance. In Australia, there are different types of financial advisers, such as Authorised Representatives and Australian Financial Services (AFS) licensees. Both of these are regulated by the Australian Securities and Investments Commission (ASIC). A financial adviser who is an AFS licensee must hold a current Australian Financial Services (AFS) Licence, which authorises them to provide financial services to retail and wholesale clients.