How to buy and sell investments

Getting into the market requires just a few simple steps. It’s easy to access ASX’s leading electronic marketplace

The trading process

Choose a broker

ASX-quoted products are traded electronically and can only be bought and sold through an ASX participant broker. If you are new to investing, you may value advice from a full service broker or adviser. If you are interested in low-cost trading and are confident in your market knowledge, you may prefer a non-advisory stockbroker. There is value in assessing the services that individual broking firms offer to match your requirements.

Brokers provide different types of services. Refer to the Find a Broker page for more information about the types of questions you can ask a broker when making a decision.

Full service and online brokers

Full service brokers offer advice on buying and selling securities, make recommendations, provide research and compile tailored investment plans. They typically charge a higher brokerage fee as a result of the advice and other services offered. Accredited advisers are also available for options, warrants and futures.

Online brokers offer no recommendations or advice regarding the appropriateness of your decision, hence their brokerage fees tend to be lower. This is an attractive option for investors confident in their sharemarket knowledge and trading decisions.

Futures brokers

Offering no recommendations or advice regarding the appropriateness of your decision, hence their brokerage fees tend to be lower. This is an attractive option for investors confident in their sharemarket knowledge and trading decisions.

When you place an order to buy or sell products that are traded on ASX, you decide how many securities you want to buy or sell and the price for those securities.

If your broker provides advice as part of their services, your broker will help you with these decisions.

Your order to buy or sell securities is entered into the ASX trading platform by your broker on your behalf.

Buy and sell orders across the market are matched with each other. Orders are generally matched according to price and in the same sequence they were entered into the platform.

A trade occurs whenever a buy order is matched with a sell order. Following this, you will receive a confirmation that your trade has occurred.

When you buy, you need to pay for your securities within two days (T+2) of your broker executing your order.

Many brokers require you to set up a client account before you can start trading. This can take up to a week but is usually arranged within 24 hours. You may need a cash management account with a financial institution to facilitate funds transfer for payment and sale of your investments.

A broker that provides you with personal financial product advice will enquire about your objectives, financial situation and needs.

You don’t have to supply this information, but they can only make specific recommendations that are unique to you by fully exploring your needs and situation.

Non-advisory brokers do not require this information as they do not provide personal financial product advice.