Are you looking to invest in Australian shares and stocks and aren’t sure where to start? You aren’t alone. Figuring out how to invest in stocks and shares can be tricky, but it doesn’t need to be. By utilising the help of an investment advisor, you can invest in the right shares and stocks without worrying about making the wrong choice.
Investing in Australian shares and stocks can be done with a broker or by buying shares directly through employee share schemes or crowd-sourced funding. To help you see how to invest in Australian shares and stocks, we have compiled a brief guide for you.
Investing In Australian Shares And Stocks
You have a few options when investing in Australian shares and stocks. You can choose to use a broker or invest yourself. Both options have their own benefits and drawbacks, and you will want to consider them carefully before deciding which option is right for you.
Investing In Stocks And Sharing With A Broker
When using a broker, you can choose between online and full-service brokers. These options are a little different, with full broker services offering more comprehensive support for you.
Let’s take a look at the two different options now:
Online Broker Services
Online broker services require a certain amount of input from yourself. You will open an online trading account and make all of your own investment decisions. As you do it all yourself, the fees are lower, but you will pay a fee every time you buy or sell shares.
Full-Service Brokers
With full-service brokers, they do the trading for you. They will advise you on what to buy or sell and will disclose any interest they have. Brokers will have years of experience to help you make the right decisions for your finances.
Full broker services will charge a fee, usually as a percentage of the value of the trade. Larger transactions will have a lower percentage, with most brokers charging a minimum fee. The fees vary depending on the broker you choose, and the broker should disclose their feeds before proceeding.
Buying Shares Directly
You can also choose to buy shares directly, eliminating the need for the middleman of a broker. When you buy shares directly, you can choose from the following options:
- Initial public offerings (IPO)
- Crowd-sourced funding
- Employee share schemes
Each option has slightly different steps you need to follow. It is important that you consider the steps you must follow carefully to ensure that you make the right choices and do not spend more than you should. Investment advisors can help here, especially if you have never bought shares before.
Buying Indirect Share Investments
You can also opt for indirect share investments, where you will buy shares and make investments without direct involvement. Indirect shares include the following:
- Managed fund
- Exchange-traded fund
- Listed investment company
- Chess depositary interest
Indirect shares can come with less risk, but it’s also worth seeking advice from investment advisors before moving forward to ensure you are making the right choices for your budget.
How To Invest In Shares And Stocks
Investing in shares and stocks in Australia can seem challenging, but it is straightforward. You can follow our steps below to help you invest in shares and see your wealth diversify.
- Visit the Australian Securities Exchange (ASX) education centre for information about investing and online seminars to learn as much as possible about stocks
- Seek advice from professionals to ensure that investing is the right choice for you
- Decide what you want from your shares – do you want capital growth or regular income?
- Keep an eye on economic and financial market changes to ensure you make the right choices and are able to adapt to any changes
- Research and compare companies, looking at the risks and returns before making a decision
- Diversify your portfolio, as spreading investments across industry decorators will lower your risk of losing money
- Keep track of your shares with company alerts, which allow you to review them regularly and make any adjustments
Start Your Investing Journey Today
Investing in stocks in Australia requires an understanding of the market and the ability to adapt to any changes. If you’re looking for professional investment guidance, we recommend speaking with the team at Solace Financial, which specialises in providing investment advice in Brisbane. They offer personalised support on investment planning, portfolio management, and wealth-building strategies tailored to Brisbane’s market conditions. The advisors at Solace Financial take the time to understand your financial goals, helping you make confident and informed investment decisions.
