How to Buy Shares in Australia: A Beginner's Guide

Buying shares in Australia is more accessible than most people expect. You don't need a finance degree, a stockbroker on speed dial, or tens of thousands of dollars to get started — just a licensed online broker, some ID, and a plan.

This guide walks you through exactly how to buy shares in Australia, step by step: what you're actually buying, how to choose a platform, how to open and fund an account, and how to place your first trade. It's general information to help you understand the process — not personal advice about what you should buy.

What does "buying shares" actually mean?

When you buy a share, you're buying a small slice of ownership in a company. As a shareholder, you may be entitled to:

• Dividends — a share of company profits, paid out periodically (if the company pays them)

• Capital growth — an increase in the share price over time (though prices can also fall)

• Voting rights — a say in some company decisions, usually at the annual general meeting

Most Australians buy shares on the ASX (Australian Securities Exchange), though Cboe Australia is a smaller, growing exchange listing shares and ETFs too. You can also access international shares on markets like the NYSE and Nasdaq in the US, and the HKEX in Hong Kong, through brokers that offer international trading.

Investing in shares carries risk, including the risk of losing money. Share prices can fall as well as rise, and past performance is not a reliable indicator of future returns.

Step 1: Decide what you want to invest in

Before opening an account, it helps to understand your broad options:

• Individual shares — direct ownership in a specific company (e.g. a bank, a miner, a retailer)

• ETFs (exchange-traded funds) — a single trade gives you exposure to a basket of companies or an index, which can spread risk across many holdings

• Managed funds — a professional manager makes the buy/sell decisions on your behalf, usually for a higher ongoing fee

There's no universally "right" answer here — it depends on your own goals, timeframe and comfort with risk. If you're unsure, it's worth reading ASIC's Moneysmart guide to shares or speaking with a licensed financial adviser before deciding.

Step 2: Choose a licensed broker or trading platform

To buy shares, you need to go through a broker — a business licensed to place trades on your behalf. In Australia, look for:

• An Australian Financial Services Licence (AFSL), meaning the provider is regulated by ASIC

• CHESS sponsorship for ASX shares — this means your holdings are recorded directly with the ASX under your own name, rather than pooled under the broker

• Clear, flat fees rather than confusing tiered or percentage-based brokerage

• The markets you actually want — ASX only, or ASX plus US and international markets

For context, Selfwealth charges a flat $9.50 brokerage fee per trade on both Australian and US shares, with no account-keeping fees — so the cost of trading $500 or $50,000 is the same. Every ASX trade is CHESS-sponsored, meaning your shares sit on your own Holder Identification Number (HIN), not a custodian's. It's worth comparing this against how flat-fee brokerage stacks up against bank-owned trading platforms before you decide.

Step 3: Open your trading account

Opening an account is usually a short online application. You'll typically need:

• ID (driver's licence or passport)

• Your tax file number (or ABN for a business account)

• A linked Australian bank account

Most platforms, including Selfwealth, support several account types:

• Individual — one person, one account

• Joint — shared between two people (e.g. a couple)

• Company

• Trust

• SMSF — for self-managed super funds trading their own investments

Choose the structure that matches how you actually intend to hold the investment — this matters for tax and estate purposes, so if you're unsure, a registered tax agent or licensed adviser can help.

Step 4: Fund your account

Once your account is open, you'll need to transfer money in before you can trade. Two common options:

• Osko — near-instant transfers between Australian bank accounts

• Standard bank transfer — usually takes 1–2 business days to clear

Getting started with an account generally involves ID verification first, then linking your bank account for funding.

Step 5: Research before you buy

This is where many beginners feel overwhelmed, but it doesn't need to be complicated. General things people typically look at include:

• The company's financial statements (revenue, profit, debt levels)

• How the company makes money and who its competitors are

• Whether you're comfortable with the level of risk involved

• How this purchase fits with the rest of your portfolio (diversification)

This article can only offer general education, not advice on which specific shares suit your situation — that depends on your own goals, timeframe and risk tolerance. If you want tailored guidance, consider speaking with a licensed financial adviser.

Step 6: Place your first trade

When you're ready, you'll typically choose between:

• Market order — buy at the best available current price

• Limit order — set the maximum price you're willing to pay; the trade only executes if the market reaches it

After your order fills, you'll usually receive confirmation and, for CHESS-sponsored ASX shares, a holding statement showing the shares are registered against your HIN.

How much money do you need to start buying shares?

There's no strict minimum to invest, but brokerage fees matter more on smaller trades. For example, on a flat $9.50 brokerage fee:

The larger the trade, the smaller the fee eats into your investment — which is one reason some investors prefer to save up before each purchase, or invest regularly through a set schedule rather than many small, ad-hoc trades.

A simpler way to stay consistent: Auto-Invest

For beginners who find it hard to decide when to buy, scheduled recurring investing — sometimes called dollar-cost averaging — is worth understanding. Rather than trying to time the market, you invest a set amount at regular intervals (say, monthly), which spreads your purchase price over time.

Selfwealth's Auto-Invest feature lets you set a stock or ETF, a schedule, and an amount, then leaves the recurring orders to run automatically. This doesn't remove investment risk or guarantee a better outcome than any other approach — it's simply a structured way to build a habit of investing consistently.

Understanding share ownership in Australia: CHESS and HINs

In Australia, ASX-listed shares are usually recorded through CHESS (Clearing House Electronic Subregister System), the ASX's electronic settlement and ownership register.

If your broker is CHESS-sponsored, your shares are registered under your own Holder Identification Number (HIN) — meaning you have direct legal ownership, with no custodian sitting between you and the ASX. Some platforms instead use a custodial model, where your shares are pooled under the broker's own HIN and you hold a "beneficial" interest rather than direct legal title. This distinction matters most if a broker ever runs into financial trouble — direct HIN ownership is generally considered a stronger position for investors. Selfwealth's ASX trades are CHESS-sponsored, giving investors their own HIN.

Note: CHESS applies to ASX-listed securities. US and other international shares are typically held under different settlement and custody arrangements through your broker's international trading partner.

Risks of buying shares

Buying shares means taking on investment risk. Share prices can rise or fall, dividends aren't guaranteed, and you could get back less than you invested. No platform or strategy — including flat fees, CHESS sponsorship, or scheduled investing — removes this risk. Past performance of any share, ETF, or market index is not a reliable indicator of future returns. If you're unsure whether investing in shares suits your circumstances, ASIC's Moneysmart website has general guidance, or you can speak with a licensed financial adviser.

Ready to put this into practice? You can open a Selfwealth account online in a few minutes, with flat $9.50 brokerage on ASX and US trades and no account-keeping fees.

Frequently Asked Questions

Do I need a lot of money to start buying shares in Australia? 

No — there's no legal minimum investment amount, though some brokers set a minimum trade size. Because brokerage fees are usually charged per trade, larger trades reduce the fee as a percentage of your investment.

What's the difference between CHESS-sponsored and custodian-held shares?

CHESS-sponsored shares are registered under your own HIN, giving you direct legal ownership on the ASX. Custodian-held shares are pooled under the broker's HIN, meaning you hold a beneficial interest rather than direct title.

Can I buy US shares from Australia? 

Yes. Many Australian brokers, including Selfwealth, offer access to US markets like the NYSE and Nasdaq alongside the ASX, usually within the same account.

How long does it take to open a share trading account? 

Online applications are typically quick — often completed in minutes — though full account verification can take longer depending on the platform and identification checks.

Is buying shares risky? 

Yes. All share investing carries risk, including the risk of loss. Share prices can go up or down, and dividends are never guaranteed. It's important to consider your own financial situation, or seek licensed advice, before investing.

What account types can I use to buy shares? 

Most platforms support individual, joint, company, trust, and SMSF accounts. The right structure depends on your personal or business circumstances — a tax agent or financial adviser can help you decide.