How to Open a Share Trading Account in Australia (Step-by-Step)

This guide walks through how to open a share trading account in Australia — what a trading account actually is, what you'll need to have ready, the steps involved, and the choices worth understanding before you apply. Selfwealth is one of several providers you can use, and we've kept this guide broad so you can make an informed decision either way. Once your account is open and funded, buying your first shares is a separate step — we link to our guide on that at the end.

What is a share trading account?

A share trading account is the account you use to buy and sell shares, exchange-traded funds (ETFs) and other listed investments. To place trades on an exchange like the ASX, you need to go through a broker — a business licensed to execute trades on your behalf. Your trading account sits with that broker.

In Australia, a legitimate broker holds an Australian Financial Services Licence (AFSL), which means it's regulated by the Australian Securities and Investments Commission (ASIC). That licence is one of the first things worth checking before you sign up anywhere.

Before you start: what you'll need

Most Australian brokers ask for the same handful of things. Having these ready makes the application faster:

• Age: you generally need to be 18 or over to open an account in your own name. (Accounts for children are usually opened by an adult as a minor/trust account — more on account types below.)

• Australian residency and a residential address: most platforms require you to be an Australian resident with an Australian address.

• Photo ID for verification: typically an Australian driver's licence, passport or Medicare card, used for a quick electronic identity check.

• An Australian bank account: to fund your trading account and receive money when you sell.

• A rough idea of how much to start with: there's no need for a large sum, but you'll want enough to cover your first investment plus brokerage.

How to open a share trading account: 5 steps

1. Choose a broker

This is the decision that matters most, so it's worth a proper (if quick) comparison. Rather than chasing the single "cheapest" number, weigh up the things that affect your real cost and experience:

• Licensing: does the provider hold an AFSL and is it regulated by ASIC?

• Fees: what's the brokerage per trade, and are there account-keeping or inactivity fees? Flat-fee brokers charge the same amount regardless of trade size, which can make larger trades cheaper and easier to plan for. You can see how flat $9.50 brokerage works as one example, and it's worth checking how flat-fee brokerage compares with bank-owned platforms.

• Markets: do you only want ASX shares, or also US and other international markets?

• Ownership model: is the account CHESS-sponsored (direct ownership) or custodial? We explain the difference below.

• Support and tools: local customer service, research and a decent app can matter more than a few cents of brokerage over time.

ASIC's Moneysmart website has a free, independent guide to choosing a broker if you'd like a neutral second source.

2. Pick your account type

Not every share trading account is a plain individual account. Depending on the provider, you may be able to open several structures — and choosing the right one from the start saves hassle later, because it affects how your investments are owned and taxed.

Common account types include:

• Individual — owned and operated by one person.

• Joint — shared between two people, such as a couple.

• Minor — held by an adult on behalf of a child.

• Company — investing conducted in a company's name.

• Trust — a trustee invests on behalf of a trust's beneficiaries.

• SMSF — a self-managed super fund investing its own assets.

Selfwealth supports all of the above; you can see the full list on our account types page, and there's dedicated information for SMSF trading accounts. Trusts and SMSFs have different tax rules from individual investors, so if you're unsure which structure fits your situation, a registered tax agent or licensed financial adviser can help you decide before you apply.

3. Complete the online application and verify your ID

Once you've chosen a broker and account type, the application itself is usually a short online form. You'll enter your personal details and complete an identity verification step, where your ID is checked electronically. In many cases this happens within minutes. If the system can't verify you automatically, you may be asked to upload a document, which can push the timeline out to 1–2 business days.

4. Fund your account

Before you can trade, you need money in your account. Funding options vary by provider, but common Australian methods include:

• Osko / PayID — near-instant transfers, so funds can be available quickly.

• Standard bank transfer — reliable, but typically takes 1–2 business days to clear.

Some brokers, including Selfwealth, provide a dedicated cash trading account (with Selfwealth, an ANZ account) that your trades settle to and from. There are no deposit or withdrawal fees to move your own money in and out.

5. You're ready — here's what happens next

Once your account is open and funded, you're set to place your first trade. Deciding what to buy — individual shares, ETFs or a mix — and how to place an order is a separate step with its own considerations. Our guide on how to buy shares in Australia walks through that, and if you're leaning toward diversified, lower-effort investing, our beginner's guide to ETFs is a good next read.

CHESS-sponsored vs custodial: who legally owns your shares?

You'll often see brokers described as either CHESS-sponsored or custodial, and the difference is worth understanding because it affects ownership.

• CHESS-sponsored (ASX only): CHESS stands for the Clearing House Electronic Subregister System, operated by the ASX. With a CHESS-sponsored account, your ASX shares are registered against your own Holder Identification Number (HIN) — meaning you hold direct legal ownership, with no custodian sitting in between. You'll receive holding statements in your name.

• Custodial: a custodian holds the shares on your behalf, and your ownership is recorded in the broker's own records rather than directly on the exchange register.

Neither model is inherently "right" for everyone, but many Australian investors value the direct ownership and transparency of CHESS sponsorship. Note that CHESS applies to ASX holdings only — international shares (such as US stocks) are held under different arrangements regardless of the broker.

How long does it take, and how much do you need?

Timeline: if your identity verifies electronically, opening the account can take just a few minutes. If manual document checks are needed, allow 1–2 business days. Funding adds a little more time depending on the method — near-instant with Osko, or 1–2 business days by bank transfer.

Starting amount: you don't need a large sum. What matters is having enough to cover your chosen investment plus brokerage. As a simple example, with flat $9.50 brokerage, buying $500 of an ETF and buying $5,000 of the same ETF both cost $9.50 in brokerage — so the cost of trading doesn't scale up with the size of your order. (Investing always carries risk, including the possibility of losing money, so only invest what suits your own circumstances.)

Opening an account with Selfwealth

If you decide Selfwealth is the right fit, opening an account is a straightforward online application. Selfwealth offers:

• Flat $9.50 brokerage on ASX and US trades, with no account-keeping fees.

• Six account types — individual, joint, minor, company, trust and SMSF.

• CHESS-sponsored ASX holdings, so your Australian shares are held directly under your own HIN.

• Fast funding via Osko, with a dedicated ANZ cash trading account.

• 90 days of free Selfwealth Premium for new members, for extra research and live pricing.

Ready to begin? You can open a Selfwealth account online in minutes and complete ID verification as part of the sign-up.

Frequently asked questions

How much money do I need to open a share trading account? 

There's usually no set minimum to open an account, though you'll need enough to make your first investment plus brokerage once it's funded. Many Australians start with a few hundred dollars. Because flat-fee brokers charge the same brokerage regardless of trade size, it pays to be mindful of how brokerage compares to the size of small trades.

What documents do I need to open a share trading account in Australia? 

Typically an Australian photo ID — such as a driver's licence, passport or Medicare card — for electronic identity verification, plus your personal details and an Australian bank account to fund the account. Company, trust and SMSF applications may require additional documents relating to the entity.

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

Often just a few minutes if your identity is verified electronically. If manual checks are needed, it can take 1–2 business days. Funding the account adds a little more time — near-instant via Osko, or 1–2 business days by standard bank transfer.

Can I open a joint, trust or SMSF share trading account? 

Yes — many brokers offer more than an individual account. Selfwealth supports individual, joint, minor, company, trust and SMSF accounts. Trusts and SMSFs are treated as separate entities for tax purposes, so consider getting advice from a registered tax agent or licensed adviser about the right structure for you.

Do I need a separate bank account to trade shares? 

You'll need an Australian bank account to fund your trading account. Some brokers also provide a dedicated cash trading account that your trades settle to and from — with Selfwealth, this is an ANZ account — which keeps your trading cash separate from your everyday banking.

Is a CHESS-sponsored account better than a custodial one? 

It depends on what you value. CHESS-sponsored accounts give you direct legal ownership of ASX shares under your own HIN, with holdings registered in your name. Custodial models hold shares on your behalf. Many investors prefer CHESS sponsorship for its direct ownership and transparency, but the right choice depends on your own needs.