Our Pick Of The Best Share Trading Platforms For Beginners

In order to compile the above list, Forbes Advisor Australia undertook a rigorous ranking process involving thorough analysis and comparison of the trading market. A total of 16 of the most popular share trading platforms were researched and considered, with the following features of each being compared side-by-side to get a full picture of the benefits for beginner traders. As you will see from our list below, we included plenty of data on the key considerations for newer investors: low minimum trades, for example, low fees, a wide range of educational tools and user-friendly interface.

The following features were therefore analysed:

• What the minimum trade value is, if any;
• The customer support capabilities available to users;
• How the brokerage fees are calculated;
• If there are any account fees that also need to be paid, whether as a sign-up fee or an annual subscription fee;
• How fees are charged for international trading or alternative trading markets;
• The educational resources and tools available to users, and a consideration of how beneficial they are to beginner traders;
• Whether the app or website has a simple-to-understand user interface and experience;
• Whether traders have the option to buy fractions of shares, rather than entire shares, in the event this is all they can afford to invest;

In addition to these beginner-friendly features, we also analysed:

• If the shares are CHESS-sponsored, and therefore if the trader is issued with a HIN;
• Whether or not the platform has live pricing capabilities or if pricing is delayed; and
• Any discounts or additional benefits that are available.
• Which markets traders can access via the platform;

After considering the above features, we came up with the top 10 share trading platforms for beginners, and ranked them accordingly.

About Star Rankings

You will note that we have included a star rating next to each product or provider. This rating was determined by the editorial team once all of the data points above were considered, and the pros and cons of each product attribute was reviewed. The star rating is solely the view of Forbes Advisor editorial staff. Commercial partners or advertisers have no bearing on the star rating or their inclusion on this list. Star ratings are only one factor to be considered, and Forbes Advisor encourages you to seek independent advice from an authorised financial adviser in relation to your own financial circumstances and investments before you decide to choose a particular financial product or service.

To start trading on share platforms as a beginner, you should first understand the risks involved in trading more broadly. You should have a good idea of your own risk tolerance—how much capital you’re willing to risk in the instance that you lose your initial contribution—and what kind of investments you prefer.

There is no exact science or formula to follow to trade successfully, as the stock market fluctuates day-by-day and even throughout a single day of trading, depending on the performance of companies, media attention, performance results, and other factors.

An easy way to start trading as a beginner is to find a simple to understand trading platform that you can access via the web or through an app, with a low barrier to entry. Our list takes into account the ease-of-use of the mobile or app, brokerage fees, minimum trade value and more.

Rather than having to commit to purchasing a full share, some investors who are just starting out, may wish instead to commit to buying fractional shares. This has been explained in further detail below, and is one of the key features analysed in each of the platforms listed above.

Yes, you can teach yourself how to trade by consuming investor media, such as stock reports and trading books, by conducting research online, watching guided videos via YouTube or listening to podcasts.

Furthermore, it’s common for trading platforms to cater to those starting to dabble in trading by offering educational resources and tools within their own platform. These tools could come in the form of:

• Fund manager research
• Instructional videos
• Blogs
• Demo accounts so you can cut your teeth with ‘fake trades’
• An investor community for insights and support

All of these resources can help you learn the ins and outs of trading. The below information will also help you understand important factors of trading before you commence your trading journey.

A key part of beginner trading is understanding the brokerage fees that you will be charged. Simply put, that’s any fees your broker or platform will impose in order for you to trade.

There are many ways these fees can be levied.

Often, a broker will charge a fee for each transaction. This means not only are you paying the initial investment money for your trade, but an additional fee on top of this figure. This may be a flat fee, such as $5 or $10 AUD for each trade, or it could be calculated as a percentage of your trade value. Sometimes they may even be a combination of both, or differ depending on the value of the trade.

For example, CommSec charges a transaction fee of $5 for any trades up to and including the value of $1,000. Therefore, your total spend if you were to invest $500 in a stock would be $505. Meanwhile, for trades over $25,000, CommSec charges a fee of 0.12%.

Trade fees may differ depending on the payment type, or on whether the flat fee or the percentage fee would be higher. Understanding your transaction fees is very important for beginner traders, as it could result in you spending a lot more money to invest than your initial capital.

Additionally, on top of transaction fees, a broker may also charge levies in order to keep your account active. This could include a sign-up fee to create an account, membership fees that are charged on an annual basis, subscription fees that provide you with higher tiers of access to the platform, and market fees for accessing international markets or alternative markets such as cryptocurrencies. You could also be charged an ‘inactivity fee’ if your account is dormant for certain periods of time usually between six months to a year.

The key to managing fees is understanding the various ways in which they can be applied as well as the fee structure on the platform you choose to use, thereby sparing you any nasty surprises.

Choosing a trading platform to begin your trading journey can seem overwhelming, especially with so many different platforms on the market. The above list can help you determine the best trading platform to suit your needs as beginner, whether it’s because of its educational resources, its simple-to-understand brokerage fee structure or its intuitive design interface.

Other factors you should consider when comparing trading platforms as a beginner include:

Customer support

What type of support can you expect from the platform? Does it offer an in-app instant messenger service, or a 24/7 hotline? Are there in-depth FAQs available to help answer your questions? Have other customers reviewed the service’s customer support in a positive manner?

Fractional shares

Fractional shares are exactly as the name suggests: a fraction of full shares. When a platform offers fractional shares to traders, it means the trader can invest in companies that they otherwise may not have been able to afford (due to the price of the full share). Not all share trading platforms offer this feature, but it is beneficial to beginner traders who aren’t wanting to invest a large amount of capital straight away.

International trading fees

For platforms that offer international trading, you’ll need to understand the international trading fee structure on top of the general ASX trading fee tier. Many easy-to-use platforms make it simple for traders by keeping their fee tier structures identical, whether for international trading or ASX trading. Regardless, this isn’t always guaranteed, so it’s important to check what the fee structure will be should you wish to trade on other markets such as the Nasdaq.

Related: What Is the Nasdaq?

Alternative market access

Along with access to international markets, a beginner trader may be interested in being able to access alternative markets throughout their trading journey as well as traditional share trading. This could include trading in ETFs, forex, or cryptocurrency. Note that there may be different fees for these alternative markets as well, so you’ll need to understand any additional charges that may be applicable.

CHESS-sponsored shares

When choosing a share trading platform, it’s important to understand whether your ASX trades are going to be CHESS-sponsored or not. While the terminology may seem confusing, it’s quite simple: CHESS-sponsored shares means the ASX has a direct record of who owns which shares by issuing traders individual holding identification numbers (HIN). This will then help you prove ownership of shares in the unlikely event that the platform you are trading with collapses.

Live pricing

Another feature that beginner traders may find desirable in a share trading platform is a live pricing capability, which is where the platform reports the ASX in real-time. This is beneficial as the market changes throughout a single day of trade, so having the most up-to-date values can help traders make more informed choices. If there isn’t a live pricing feature available, this means the prices will be delayed–sometimes by up to a few hours.

Discounts or bonuses

When shopping around for a share trading platform, it may be worth considering if there are any discounts (such as your first trade fee-free) or bonuses that you can enjoy every time you make a trade (such as loyalty points for partner programs).

Nevertheless, while these offers may seem enticing, it’s important to weigh up their value against the other considerations of a share trading platform: for example, there’s no benefit in enjoying your first trade free if the subsequent fees are going to be much higher than you would pay elsewhere.

At the end of the day, the right trading platform for you will depend on your own needs and trading goals. Thankfully, there are many free trials or demos available today for you to try out different services before choosing the right one or committing any money.

Demo Account

Starting out on your investment timeline can be intimidating to say the least, so look for platforms that allow you to open a virtual account, or ‘demo’ account, so you can practise before you invest any of your money. Demo accounts are great for testing the waters, as well as building confidence, so you can better understand the markets you’re investing in. Pearler, MooMoo, eToro and IG all offer paper trading or demo accounts.

Data research: Mia Dunn