From all the media attention, it would be easy to assume residential property is the nation’s top investment – but that’s not the case.
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Almost 6.5 million Australians own shares either directly or indirectly via a managed fund.
According to the latest Share Ownership Survey by the Australian Securities Exchange, shares are the preferred asset class for personal investments.
About one in three of us invest in shares compared to 21 per cent who own an investment property.
The same research found 2.5 million non-investors are keen to get started in the sharemarket but are unsure about what’s involved.
Sharemarket investing isn’t just easier than it used to be; it’s also a lot cheaper.
There’s a wide choice of online brokers providing low cost ways for investors to build a share portfolio.
Brokerage averages about $19 per trade but with some brokers, like CMC Markets, the cost can be as little as $11 per trade.
To get started, you’ll need a bank account linked to your share trading account, and in some cases the broker will specify which financial institution this account should be held with.
Once you have an account, you can begin trading virtually straight away.
To order, quote the unique three-letter ASX ticker code that applies to each stock and note the quantity you want to buy (or sell).
Online trading is quick, and your buy/sell order can reach the ASX in less than a second.
- For more, visit the government’s MoneySmart website.
- Paul Clitheroe is a founding director of financial planning firm ipac, chairman of the Australian Government Financial Literacy Board and chief commentator for Money Magazine.