Say What Wednesdays

Which platform should I choose for investing and trading?

Welcome to Finance and Fury’s ‘Say What Wednesday’.

Today’s question comes from Braden, “What are the tools for young people to invest in exchange trading funds or the wider share market? Can I only use Commsec or Nabtrade, or are there better options out there?”

Let’s start by considering the following features of competing online share brokers;

Fees

  • You’re charged brokerage for every buy or sell transaction, with many fees around the $20 mark.
  • Fees may be calculated as a percentage of the transaction amount for larger trades.
  • Also charge an ongoing annual or monthly fee on top of this, especially with the more feature-dense platforms.

What can you trade? 

  • Shares – Australian and International shares (Direct, LICs, ETFs)
  • Others – CFDs, forex, indices, currencies and much more, so look for this functionality if it’s important to you.

Research & Access to market data

  • Daily market reports, buy and sell recommendations and company financial reports can all provide useful information.

Trade options

  • You place orders at market and/or at limit, and are stop loss orders an option to add more flexibility to your trading?
  • Some accounts allow short selling

Reporting. Check what reporting tools each platform offers to help you track your trades, record dividends and pass on any relevant information to the ATO at tax time.

Margin loans. A margin loan lets you borrow money to invest and uses your shares as security. If you’re looking to borrow money to build your portfolio, check to see whether the platform provider offers margin loans. Don’t forget, this does comes with additional risk.

Education
Does the platform also feature a range of educational tools and resources, such as how-to guides and webinars, to help you get more out of your trading account?

 

Platforms
So, let’s look at some of the platforms available. Which one is right for you depends on what you want to achieve.

  1. Either you will be a fulltime trader, or a casual investor
    • Different types of accounts will suit each
  2. Traditional (the banks)
    • CommSec – Below $10k, $10, Below $20k, 0.11% above
    • nabtrade
    • Westpac

 

Your needs
If you’re just a casual investor, do you really need a share trading platform that offers a whole lot of complicated bells and whistles?

Some platforms targeted at entry-level traders may not have all the features an experienced investor needs.

Monthly Fee Standard Broking Margin trading IPOs International
IG Share Trading $0 $8 or 0.10%, whichever is higher Yes Yes Yes
SelfWealth $0 $9.50 regardless of trade size No No No
CMC Markets $0 $11 or 0.10%, whichever is the greater (for 11 trades or less per month) Yes Yes No
Saxo Capital Markets $0 $6.99 Yes No Yes
HalifaxOnline $0 $14.95 Yes Yes

Yes

*Under $20,000 trade size

 

  • For larger trades – Self wealth is good – Flat for $9.50
  • Important: Doesn’t matter massively – it’s not where you buy, it’s what you buy!

Thanks for the question Braden! Any other questions go to https://financeandfury.com.au/contact/

Furious Fridays: Elon Musk, Tesla and how CEOs affect share price

Furious Fridays Elon Musk, Tesla and how CEOs affect share price Today we’re talking about the markets, how CEOs affect share price and how public perceptions can make or break. We look at Elon Musk. Musk is a business magnate, investor and engineer. He is the...

The deal with proposed Changes to Franking Credits policy

Say What Wednesdays The deal with proposed Changes to Franking Credits policy Welcome to ‘Say What Wednesdays’, this ‘Say What Wednesday’ is brought to you by Adam and Tate, they both asked separate questions about the Franking credit issues and just to help clarify...

Take control of your money – nobody else is going to do it for you

Episode 30 Take control of your money - nobody else is going to do it for you Welcome to Finance & Fury! On today’s episode we take look at the best ways to secure your financial future I’m going to share the rules I follow – And how to not be a victim It isn’t hard –...

Repress, suppress, invest! Check your emotions at the door

Episode 12 Repress, suppress, invest! Check your emotions at the door Welcome – Today we're talking about controlling your behaviours and emotions...when it comes to investing Investing is an action, controlled by behaviours – emotions change your behaviours. Getting...

Risky business; why fortune favours the brave (and smart!) and why volatility isn’t necessarily a bad thing

Episode 5 Risky business; why fortune favours the brave (and smart!) and why volatility isn’t necessarily a bad thing Today on Finance & Fury, we’re talking about …risky business! Why take risk at all when investing? There must be a reason some people are willing to...

How do I make an Investment Strategy?

Welcome to Finance and Fury, today’s episode is a flow on from last Monday’s Investment philosophy episode and narrow down into an Investment Strategy. To invest properly, your investment beliefs need to expand into a strategy, an implementation plan. So Today: Expand...

How do we reduce poverty?

Welcome to Finance and Fury, the Furious Friday edition. This week is a flow on from last week’s episode talking about the basics of supply-side economics. But, it’s going to be applied to a question we got from Nick. What is a solution for society that would...

Say What Wednesdays: Insurance – how it works, what to look for, and how much you need

Welcome to Finance and Fury’s ‘Say What Wednesday’ edition, where every week we answer questions from you guys. This week the question comes from Effy; “I am a Chinese migrant living in Melbourne. I do not recall if your podcast has covered insurance, such as...

Furious Friday: The centralisation of power and control of the economy

Furious Fridays The centralisation of power and control of the economy Last Friday we looked at the stock market crashes of 1907 and 2008 Difference between them was the crash of 1907 had no intervention by any central bank in the USA – because no central bank...

Say What Wednesday: The ups and downs of Bitcoin – currency, investment opportunity, both… or neither?

Say What Wednesday The ups and downs of Bitcoin - currency, investment opportunity, both... or neither? Today’s question comes from Richie, who asks, “Have you been following the Bitcoin ETF at all? If so, are you able to do an episode on this and if it is worth...

Pin It on Pinterest

Share This