Recommendations on cheap share trading broker.

pclyne on 02/06/2022 - 15:18
Last edited 02/06/2022 - 15:19

I have searched the forums, but I cant find a suitable answer (it could be I'm just not a very clever searcher)

Just after some recommendations (or "stay away from") on share trading brokers.

NOT big volumes of shares, not big $ of trades, just the odd occasional gamble (cause face it, share trading is a lot like gambling).

My father uses comsec, but they seem expensive and offer way more features than I want or will ever use…

I have found the following article https://www.canstar.com.au/investor-hub/online-share-trading… and am tempted by the 'low end of the market" charges by some of them.

Would only be trading in AU shares - not brave enough to go overseas (yet?)

Are there "better" options?
Are there horror stories i should be aware of? (don't use XYZ an they only pay on sales after 3 moths and then only in bottle caps you must collect from Spain..).

Any advice would be welcome.

Thanks

Financial

Comments

  • Fergy1987 on 02/06/2022 - 15:27
    +6

    Stake

  • silenthillrocks on 02/06/2022 - 15:31
    +4

    CMC

  • Seraphin7 on 02/06/2022 - 15:55

    Try Stake or Pearler.

  • Rako on 02/06/2022 - 16:20
    +2

    https://www.selfwealth.com.au/
    They are Chess sponsored
    Some other brokers, notably IG Markets and Interactive Brokers, operate under a custodian model, meaning they hold the shares on your behalf. If either of those companies goes under, your ownership of the shares isn’t as clear as if they were CHESS Sponsored.

    Hope this helps

  • cashless on 02/06/2022 - 16:45

    +1 For Selfwealth. Cheapish, full service, CHESS sponsored plus potential to trade overseas in future

  • rektrading on 02/06/2022 - 19:48
    +1

    NOT big volumes of shares, not big $ of trades, just the odd occasional gamble (cause face it, share trading is a lot like gambling).

    People who want to start trading while calling it gambling should stop before they get destroyed. They rock up the playground thinking they'll make money but will end up losing 67% to 90% within 3 months.

    Trading is a full-time job. Don't start unless being fully committed.

  • brad1-8tsi on 02/06/2022 - 21:18
    +1

    Stake. $3/trade. Chess sponsored.

    I'm not sure why you think buying shares is gambling unless you are specialising in penny dreadfuls and don't bother doing any research.

  • Hearthstone on 03/06/2022 - 09:27
    +1

    Stake $3 and CHESS, no one can beats it.
    I use it to execute all my trades and other platform for data and charts

  • CheapGPT on 20/07/2022 - 15:00

    I want to invest $100-$500 every month (currently only in ETFs), I don't plan to trade shares for another year or so. Can someone please suggest which of the platforms would be cheaper to use in long term?

    • CMC Markets
    • Selfwealth
    • Stake
    • Superhero
    • non-core promise on 20/07/2022 - 21:49
      +4

      CMC Markets offer one free buy per day under $1000, $11 fee when selling. So they're tempting you in with free smaller buys, but they get their money back when you sell. Is CHESS sponsored.

      SelfWealth has a flat $9.50 across all amounts, buy and sell. Is CHESS sponsored.

      Stake has a flat $3, buy and sell, but anecdotal reports from users indicate it's a pretty barebones experience. Makes sense given how much lower their brokerage is compared to everyone else. Is CHESS sponsored.

      Superhero has free buys on ETFs. $5 to sell. $5 to buy or sell anything else. If you transfer any shares bought for free within 12 months, there's a fee, equivalent to as if you had paid brokerage, so $5 per ETF. Is NOT CHESS sponsored.

      CHESS sponsored means there's an external shares registry that says who owns what and how much. Not being CHESS sponsored means the broker keeps their own records and owns your shares on your behalf, but in their name.

      Most regard CHESS as more secure against broker bankruptcy, however it's worth pointing out most of the world do not have CHESS sponsoring and they've turned out fine for the most part. All depends on your appetite for risk. Research further on this yourself for more details.

      There are other details I can't recall off the top of my head, like minimum trade amounts (it's $100 for Superhero, no idea on the others). Research this yourself. It's usually under "pricing" or "fee schedule" on their websites.

      So someone who buys and sells frequently, but is happy using external tools for gauging market conditions, will likely favour Stake. Cheapest CHESS sponsored brokerage for buying and selling, barebones offering doesn't matter.

      Someone who invests in a boring way (e.g. putting spare funds on the stock market and not selling for a long time) will likely favour CMC or Superhero. CMC offers free CHESS sponsored buys once per day, under $1000. Superhero offers free buys on ETFs with no restrictions on amount or frequency, but is not CHESS sponsored.

      SelfWealth offers more tools for market conditions, comparing your portfolio with other SelfWealth users, etc. That's what they offer for the extra $6.50 over Stake. How much value this brings is dependent on the individual.

      That's just a brief summary. Do more research yourself, especially for something related to money such as this. Don't blindly trust random people on the internet.

      • CheapGPT on 20/07/2022 - 23:00

        Thank you, this helps!

  • ALesha77 on 20/07/2022 - 20:52
    +1

    If are after cheap and simple - I would recommend Stake.
    I would not recommend AU ETFs though for now.
    China and US might have more potential.

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