Types of Share Trading Accounts in Australia: A Beginner's Guide

The first is about ownership structure: whose name the account sits in — you, you and a partner, a company, a trust or your super fund. The second is about how your shares are held behind the scenes: directly in your name (CHESS-sponsored) or by a custodian on your behalf.

This guide covers both in plain English, so you can work out which account suits your situation before you open one.

The two ways to think about “account types”

It's easy to mix these up, so here's the quick version:

• Ownership structure = who legally owns the account. This is what you choose at sign-up: individual, joint, minor, company, trust or SMSF.

• Holding model = how your shares are recorded. In Australia this is either CHESS-sponsored (held directly in your name) or custodian (held on your behalf).

Most people choose a structure first; the holding model is then largely determined by the broker and the market you trade. We'll take them in that order.

Account types by ownership structure

Here are the main structures Australian brokers offer. Selfwealth offers a range of account types across all of them.

Individual account

The simplest and most common structure. One person aged 18 or over owns the account and makes every decision. If you're starting out on your own, this is usually where you begin. You can open an individual or joint account in minutes.

Joint account

A joint account is owned by two people who invest and make decisions together — commonly couples or family members pooling funds. Both owners typically have equal access. How ownership passes if one holder dies can differ from an individual account, so it's worth considering the estate-planning implications and seeking licensed advice.

Minor (investing for kids)

This structure lets an adult invest on behalf of a child, with the adult operating the account and the child named as beneficiary until they come of age. It's a popular way to start a long-term nest egg. Learn more about investing for kids.

Company account

Here the account is held in the name of a company (a Pty Ltd), and the company owns the investments — often used to invest surplus business capital. Company structures have their own tax and reporting rules, so an accountant or registered tax agent should guide the setup. You can explore a company share trading account with Selfwealth.

Trust account

A trust account is operated by a trustee who invests on behalf of the trust's beneficiaries. Families often use trusts for asset protection and estate planning. Trusts can be complex and carry specific legal and tax obligations, so get professional advice before setting one up. See the full list of account types for details.

SMSF account

A self-managed super fund (SMSF) lets you manage your own retirement savings and choose your investments directly. Once your SMSF is established, you open a trading account in the fund's name. SMSFs are regulated by the Australian Taxation Office (ATO) and come with strict compliance duties. You'll also choose a trustee structure — individual trustees or a corporate trustee — which the ATO explains here. Running an SMSF is a big responsibility, so most trustees work with an SMSF specialist. See how SMSF trading works with Selfwealth.

How your shares are held: CHESS-sponsored vs custodian

Once you've picked a structure, the second “type” question is how your shares are recorded. In Australia there are two models, and the difference affects ownership, transfers and which markets you can reach.

CHESS-sponsored (held in your name)

CHESS stands for the Clearing House Electronic Subregister System — the ASX's electronic system for recording who owns ASX-listed shares. Under a CHESS-sponsored account, your ASX shares are registered directly in your name and linked to a unique Holder Identification Number (HIN). You are the legal owner.

Commonly cited benefits: your name is on the register, you receive issuer communications directly, and you can move holdings between CHESS-sponsored brokers using your HIN without selling. Selfwealth is CHESS-sponsored for ASX shares, so your Australian holdings sit under your own HIN. Read our plain-English explainer on what CHESS sponsorship means.

Custodian model (held on your behalf)

Under a custodian model, a licensed custodian holds the shares on your behalf and you hold a beneficial interest rather than direct legal title. This model can enable features such as fractional shares (buying part of a share) and easier access to international markets.

Important: international shares — including US and Hong Kong listings — are held via a custodian even when a broker is CHESS-sponsored for the ASX, because CHESS only applies to ASX-listed securities. So most Australians who trade overseas will have some custodian-held holdings regardless of platform.

CHESS vs custodian at a glance

Neither model is “better” in absolute terms — it depends on what you value, such as direct ownership versus fractional and international access.

How to choose the right account type

This is general information, not personal advice, but a few questions can help you narrow it down:

• Who is investing? Just you (individual), you and a partner (joint), for a child (minor), a business (company), a trust's beneficiaries (trust), or your super (SMSF)?

• Which markets do you want? ASX only, or international too? This influences how much of your portfolio is CHESS-sponsored versus custodian-held.

• How much does direct ownership matter? If having your ASX shares in your own name via a HIN is important to you, a CHESS-sponsored broker suits.

• What are the tax and estate implications? Company, trust and SMSF structures have specific rules. For anything tax-related — including capital gains — speak to a registered tax agent or read ASIC's Moneysmart.

Because the right structure depends on your objectives and circumstances, consider licensed financial advice before deciding.

Can you have more than one share trading account?

Yes. You can hold several accounts across different structures — for example, an individual account plus an SMSF account. Each CHESS-sponsored account you open is assigned its own HIN, so it's normal to accumulate multiple HINs if you use more than one broker or structure. Some investors keep separate accounts to distinguish, say, personal and family investments. Just remember each structure has its own admin and, potentially, its own tax treatment.

How to open a share trading account

Opening an account is usually quick:

1. Choose your structure — individual, joint, minor, company, trust or SMSF.

2. Apply online with your ID (plus entity documents for company, trust or SMSF accounts).

3. Fund your account — with Selfwealth you can transfer via Osko for near-instant funding, or a standard bank transfer (1–2 business days).

4. Place your first trade. On the ASX, brokers often require a minimum first “marketable parcel” of around $500.

With Selfwealth you'll pay a flat $9.50 brokerage per trade on ASX and US shares no matter the trade size, with no account-keeping fees, and your ASX holdings are CHESS-sponsored under your own HIN. New to buying shares? Start with our guide on how to buy shares in Australia.

Ready to start? Open your Selfwealth account and choose the structure that fits — individual, joint, company, trust or SMSF.

Frequently asked questions

What are the main types of share trading accounts in Australia?

There are two lenses. By ownership: individual, joint, minor, company, trust and SMSF. Separately, your shares are held either CHESS-sponsored (in your name) or via a custodian (on your behalf).

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

CHESS-sponsored registers your ASX shares in your name under a HIN, giving you direct legal ownership. A custodian holds shares on your behalf (beneficial ownership), which can enable fractional and international investing.

Can I have more than one share trading account?

Yes. You can hold multiple structures, and with CHESS-sponsored brokers you can hold multiple HINs across accounts or providers.

Which account type is best for beginners?

Many individuals start with an individual account, but the right choice depends on your situation. This is general information, not personal advice.

Are US shares CHESS-sponsored?

No. CHESS applies only to ASX-listed securities, so US (and Hong Kong) shares are held via a custodian, even at CHESS-sponsored brokers.

Do I need a special account for an SMSF?

Yes. Once your SMSF is established, you open a trading account in the fund's name. SMSFs are regulated by the ATO and carry strict duties, so consider an SMSF specialist.