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Right now I am considering starting investing in stocks on my own and using the Commonwealth Bank Comsec to do it.

What's stopping me is not the $20 brokerage to buy, and then another $20 to sell. But the $500 minimum purchase.

Are there any good reputable online brokers with a minimum purchase of less than $500 (say 50 or $100 or even no minimum.

I'm only interested in trading Australian stocks at the moment.

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    With $20 in and $20 out in brokerage that is already 8% of the min. $500 trade - this means your stock needs to go up 8% just to pay your brokerage before you start making actual profits. Why would you want to go smaller than this and increase this percentage even further. By the way CMC Markets has the cheapest starting brokerage at a min. $11 per trade (less if you are a frequent trader). – Victor Jul 23 '14 at 11:58
  • A good rule of thumb that I use is that transaction costs should be no more than 1% of the trade. If I don't have the funds to make this amount I keep the money in a savings account until I do. With an $11 fee at CMC I wouldn't be looking at a trade of less than $1100. Normally I wait until I have $2k-$3k but that's just a personal preference. – andy47 Mar 4 '15 at 22:20
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With InteractiveBrokers there is no minimum trade amount, they also offer Australian Equities.

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The $500 minimum is a policy of the ASX.

As such any broker that offered a different policy would not be offering direct purchase of exchange traded shares.

Note however that this policy applies only to the initial purchase.

From the CMC FAQs:

The ASX requires a minimum parcel of $500 to be traded if you don’t currently hold that particular security. Once you have $500 worth of an individual security, you can purchase any value of shares you like.

  • This is interesting, so let's say I have 500 in BHP I can then buy any small number of additional shares in BHP) but If I don;t already have a share I must (using Commsec) buy 500 worth of that new asset? – yoshiserry Jul 30 '14 at 2:18

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