Australian Stock Brokers - Getting Started

Usually when people think of approaching a stock broker, they already have a rough idea of the type of shares they want to hold, or the general goals for their personal finances. However, if you have no experience in stock trading, it can be hard to find good information or to know who to trust.

One of the most common questions that new investors want to know is the minimum amount required to invest. You can start investing with as little as $500, which is the minimum parcel of shares, but many stock brokers will recommend you start with a larger amount. This is because if you are using the services of an advisory broker, the fees may diminish the returns of a smaller investment to the point where it is not sensible or worthwhile.

A general figure people use is about $5000, but it should be noted that some brokers are offering 'sharepacks' and other pre-packaged investment plans for less than that amount. It can be quite daunting entering the stock market, but there is plenty of information out there and advisory stock brokers are there to help you.

Try to find a broker that tailors to your investing style, and don't be afraid to shop around. Stock brokers are financial services companies in place to serve customers, so don't be put off from asking questions and viewing information like the assistance they provide and the company's financial services guide.

Make sure you only deal with licensed financial advisory businesses. The Australian Securities and Investments Commission holds companies to strict quality guidelines, and the government organisation also provides a venue for any complaints should things go wrong. If you receive bad financial advice, in some circumstances you may be entitled to compensation. Check the ASIC website for more details.

Once you become an investor on the stock market, you will realise that deciding when to sell can be a much harder decision than working out how to buy. Make sure no matter what level of broker you choose that you understand the transaction and advisory processes in place, and again, remember it is your investment money and you must ultimately take responsibility for any decisions on where you choose to invest it.