Share Dealing - Share Trading

Stocks and Share Dealing involves the actual purchase and selling of stocks. In other words, trading stocks is not a form of derivatives trading (like CFDs or spread betting). When you take part in share dealing, you (the investor) are required to buy the underlying stock and are not just betting on the direction it might take. Share dealing on the stock market is seen as being best for medium- to long term investment. Check to see what fees are involved by looking at the table below, and what share dealing methods are offered, can you trade online? Before you invest in any share dealing product please make sure that you read the terms and conditions thoroughly in order to ensure that you fully understand the product, the risks involved and what you are investing in.

What is Share Trading?

Share Trading allows people to buy and sell shares. When you buy a share in a company, you become the owner of a part of that business. You can now earn income from dividends paid by the company – and from possible rises in the value of the shares between the purchase and sell date. Companies are listed on the Australian Securities Exchange (ASX) and each day you will notice share values in those companies – have they gone up or down?

Is it easy to purchase and sell shares

Buying and selling of shares takes place via a stockbroker – there are many available nowadays and most of them order an easy online process. All of these stock brokers will have direct access to the ASX and will vary in the service they provide. Which one you go for is ultimately up to you – it depends on things like how much assistance and advice you want. The more guidance you get from a stock broker, the more they are likely to charge for their services.

Is trading and investing the same thing?

Whether you decide to invest in shares or trade them depends on your financial and investment goals. If you want a long term investment plan, then you are looking to buy shares and keep hold of them for anything from half a year to many years. Many stockbrokers offer this option alongside their trading accounts. If you are more interested in a frequent buying and selling activity, then you can trade shares – even up to many times a day. That means you are looking for a more short term investment strategy.

Are shares always a long term investment?

Whether you want to invest your money in shares in the long, medium or short term is up to you. Each person has their own investment and financial goals, and their own level or risk appetite. It also depends on how much attention and time you can give to your shares activity. If you are able to actively monitor the market and are open to higher risk, then trading shares might be suitable. You will need to be prepared to stay updated with global financial, economic, corporate and even political news.

What are the risks involved with share dealing

Before you get started in shares, it is highly recommended that you carry out some research and background work on how they and the market works. In addition, you'll need to work out what your personal risk level is. You can read information directly from the ASX website, in financial books and on the internet. Use a trader training academy and sign up for free seminars and webinars – this will help you to learn more and gain insight from expert investors. Once you have fully assessed the risks, your personal goals and know how the market works you can decide what shares you want to invest in. Compare brokers on our site and check which one offers the best deal for you.