I am John and I am 18 years old. I am looking to open a brokerage account in Australia. My question is what characteristics should I look for when opening a brokerage account as a beginner?

  • Always go with the "biggest, most well known" name. If it was a car, Toyota and forget everything else. DON'T EVER (anywhere in the world) use "robinhood" or other novelty brokers. It's a straight "reliability is everything" choice. (If you're an expert and have arcane needs, you wouldn't be asking this question.)
    – Fattie
    Jun 22 at 15:23
  • @Fattie Hello, thanks for the advice. I want to open an account with interactive brokers but I am not wealthy enough to meet their net worth requirements. What do you recommend based on your experience?
    – CountDOOKU
    Jun 23 at 4:01

Brokers offer many features but each broker doesn't offer all of them. I think that a beginner would look for basic needs first:

  • Low/no commissions
  • No hidden account fees
  • Good customer service including tech support
  • A stable platform with few service outages
  • Educational resources
  • Good charting
  • Prompt execution and prompt account updating

A more experienced investor/trader might be interested in:

  • Fractional shares
  • Low margin rates
  • Portfolio margin
  • Good option analytics
  • Trading algorithms beyond basic stop orders
  • Real time news
  • Effective at borrowing shares for shorting
  • Stock screeners
  • Free dividend re-investment
  • Hi Mr Baerker, thanks for your answer! Can I ask what brokerage are you using?
    – CountDOOKU
    Jun 21 at 13:54
  • I use Interactive Brokers. It's a trader's platform. Here's an article discussing Best Online Brokers. You can google for others like this. Jun 21 at 15:17
  • 5
    If the OP is looking for an Australian brokerage firm, the OP should ensure that the broker is licensed by the Australian Securities and Investments Commission (ASIC). moneysmart.gov.au/check-asic-lists
    – Flux
    Jun 21 at 16:22
  • @Flux Hello Flux thanks for the info. I am looking for any broker/trading platform not necessarily based on Australia
    – CountDOOKU
    Jun 22 at 7:07

To find a broker, check out your bank's web page, see if they provide brokerage services for you to Buy/Sell.

As well as hear, look for forums which specialize at covering the ASX.com.au eg: hotcopper.com.au


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