Some investors prioritise charting tools, while others are focused on customer-service capabilities. Because no two investors are the same, each will prioritise different platform features. But, generally speaking, the below features are considered important by most traders.
Minimum Investment
Before signing up to a share trading platform, ensure that you can afford–and are happy to–pay the minimum investment. Often this is $500, but it can increase to over $1,000 or decrease significantly to $0 for smaller platforms.
Sometimes, this minimum investment is only for the first initial trade, while other times, there’s a minimum for every trade you make.
Additionally, some platforms may have introductory offers that waive minimum initial investments or offer a certain amount of free trades. Ensure you are aware of any minimum investment requirements before signing up to a share trading platform.
Fees
There are numerous fees associated with share trading, regardless of how you choose to trade.
The most common fees are account fees or subscription fees, brokerage fees, ETF trading fees, international trading fees, withdrawal fees, and currency conversion fees.
Many platforms will price their fees in a tiered structure according to how you much you invest, while others will offer a flat-fee model.
Live Pricing Capabilities
The ASX fluctuates throughout the day, with changes happening minute by minute. For those keen to know where their investment stands in real time, live pricing is an important feature.
Some automatically offer live pricing, while other platforms may charge a fee for access.
CHESS-Sponsored ASX Trades
As mentioned above, CHESS-sponsored trades are an important way of proving share ownership. If your share trading platform operates with a CHESS-sponsored model, you’ll be provided with a Holder Identification Number (HIN) if you don’t already have one. If you do, you can transfer your HIN between brokers.
The HIN is how the ASX records the shares you own. Some brokers, however, choose to use a custodial model for the ASX (international shares are traded in this manner).
Those that use a custodial model for buying and selling on the ASX often have cheaper fees, but they do not have the protection of guaranteeing your share ownership if something were to go wrong with the platform.
Customer Service
No matter how experienced a trader you are, there may come a time when you need help or clarification regarding an issue with a trade or your account. On these occasions, you will want a platform that offers prompt customer service, ideally by phone.
While email is helpful, most investors would prefer the peace of mind of having their issue seen to in real time.
International Market Access
The vast majority of share trading platforms in Australia offer access to the ASX. Indeed, all of the platforms and online brokers analysed by Forbes Advisor feature access to our local bourse.
Many traders are also looking for access to international markets, such as the Nasdaq or the NYSE in the US, or any number of global indices.
Some platforms offer access to hundreds of overseas markets, while some only have access to a few. A handful focus exclusively on domestic equities with no overseas markets on offer.
ETFs, Crypto and More
These days, it’s common for investors to trade in assets other than equities. This may include cryptocurrencies via your share trading platform or even commodities such as gold and silver.
Many online brokers offer ETFs alongside shares, but other assets, such as crypto, may be more difficult to find.
Consider what you may wish to trade in–both now and in the future—and make sure the online trading platform allows for it before committing.
Trading Guidance
Regardless of your level of experience, trading guidance tools are useful in making investment decisions.
Some platforms offer access to research from leading fund managers, such as Goldman Sachs or investing house Morningstar. It could also include more in-depth support and educational tools, such video tutorials.
There are even more advanced training tools available, including demo models that allow you to practice trading virtually or training academies to help you learn how to invest responsibly.
User Experience
Traders are looking for more than a simple transaction when they log in to their accounts. They want a seamless and enriching experience within the trading environment complete with friction-less design and an intuitive interface.
