Choosing a broker

You need first to decide whether you want advice on what to buy or sell and when to do so. Although broking firms generally do not charge a separate fee for advice, this service is reflected in higher brokerage fees on share transactions. Those firms not offering advice generally charge lower fees.

If you are starting out in the sharemarket and don't feel confident in your sharemarket knowledge you may value the advice of a full service broker. If you are interested in low cost trading and are confident in your knowledge of the sharemarket you may prefer a non-advisory broker.

After deciding on the type of service you require, you can choose any of the following:

1. Speak to a client adviser at a stockbroking firm. There are over 90 stockbroking firms, many with branches throughout Australia. Most of them employ a number of advisers to service individual investors.
2. Your financial planner and/or accountant may have an existing arrangement with a stockbroking firm and can arrange an introduction and/or the purchase or sale of shares.
3. Some banks offer facilities to purchase shares via their branch network and/or a special customer service area.
4. Purchase shares directly via a public float
5. Use the Internet to buy shares. Your purchase will, however, still be via a broker's website.

Getting ready to trade
What do brokers do?
How to buy and sell shares