The type of stockbroker you need depends on the amount of advice you’re expecting (and willing to pay for). If you’re happy to make your own investing decisions (and/or using a Motley Fool service), we’d recommend steering away from so-called ‘full-service’ (and expensive) stockbrokers, and towards an online ‘execution only’ brokerage.
Those brokers allow you to make your own trades online, and the majors have very user-friendly websites and helpful customer service teams. Some also have online tutorial videos to help. They’re also much cheaper than full-service brokers.
Like anything an online broker can seem daunting at first, but you’ll quickly get the hang of it. A word of warning, though: direct, easy access to an online brokerage can make frequent trading very tempting. We think it’s important (and Foolish) to restrict your trading and to invest for the long term.
Some of the biggest are likely the best options. Like many things in life, we’d counsel against just going for the cheapest price – for just a few dollars more per trade, some of the larger and more popular brokerages such as CommSec, Nabtrade and ANZ Share Investing might be a good place to start.
For those members wishing to invest in US stocks, we have partnered with Stake. Note that we do not have a commercial relationship with Stake.
However, we believe Stake is disrupting how Australians invest internationally by creating a modern, near-frictionless investing platform for Australians. The most intriguing part of Stake -- it charges zero fees (yes, $0) on the trades!
Instead, Stake makes its money on foreign exchange transaction fees. Overall, the fees are low relative to other options and the platform itself is very much user friendly.
For more information please visit their website here: https://au.support.hellostake.com/support/home.
Should you wish to speak with their support team we also have a dedicated number for Motley Fool members. They are available from 9am - 5pm Monday - Friday AEST and can be contacted on (02) 8599 7174.
In addition to Stake, members of our investing team use different online brokers for their international investments including: