So you have some saved funds that have been sitting there doing less than a sloth in the sun and now you have got the guts to start a share portfolio. But it’s not like you can duck up the corner store after dinner and grab some Westpac shares with your Golden Gaytime, if only it was that easy. But to be honest it really isn’t that hard, and the more times you do it the easier it gets, like anything.
First of all do some research into what area you are interested in, whether it be Tech, Energy, Mining, Fashion or even an Index Fund, but pick something that interests you.
This will help keep you on-top of what the company is doing how they are traveling and it won’t feel like a chore checking to see how your investment is traveling. After all, you’re about to be one of the owners of that company.
Once you have and idea or have found the company/fund you want to invest in, look them up and find what their price per share is and how many you would be willing to buy. (listed companies $500 AUD Minimum + Brokerage).
Then you choose which corner shop you wish to buy it from? Jokes, now let’s choose a Broker to buy the stocks for you.
There are 2 main types of brokers, what they call:
1. “Online”(the cheap one but you do the work) that usually starts at around $15 per trade and is execution only, which means you place the trade yourself, at what price you want, how many you want and how long that offer stays for. Can be daunting first time but all the Big 4 Banks have great platforms to learn on.
is a good place to start otherwise, visit the bank to get some advice on opening an account just for trading.
2. “Full Service”
brokers the name says it all. It’s like going to the pub ordering your meal and they bring it to you cooked with all the trimmings. You can find a qualified broker through the ASX website
or even some financial advisers are licensed.
They will walk you through the process give you some advice on what when and how to buy and then deliver you your small (or large) bit of the company. They usually start at around $80 per trade, if you wish to go down this track you are usually investing more than the minimum, so I suggest you find a broker in your area and build a relationship.
Time to choose who is going to buy shares? You can buy them individually, as a company, via a trust or even on behalf of a minor. What a great gift for that person that has everything!!