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Freedom251 › Blog › ASIC Moneysmart

How to Choose an Online Broker for Buying ASX Shares

By Freedom251 Team · · 2 min read

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Compare an online broker’s full costs, how it records your shareholdings, its licensing and disclosures, and the account features you will actually use. Check the provider’s current terms before opening an account: fees and features can change.

What an online broker does

A broker gives you access to the ASX and places trades on your behalf. With an online broker, you open an account and choose which shares to buy and how much. ASIC’s Moneysmart says most people who buy shares use an online broker. Moneysmart’s share-trading guide was last updated on 2 October 2026.

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Compare the full cost, not just brokerage

Check the fee schedule for the kinds of trades and accounts you expect to use. Brokerage is only one possible charge; platform fees, inactivity charges and, for overseas shares, foreign-exchange fees may also apply. Compare both buying and selling costs.

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Moneysmart says most online brokers charge a flat fee for smaller trades, often around $20 or less, while some charge a percentage for larger trades. This is general guidance, not a current quote or a price for any particular broker. Fees can take a significant share of a small trade, so check the charge before placing each order.

Understand how your shares are held

An individual holder identification number (HIN) connects shares bought through a broker to you as the holder. Some providers use an omnibus arrangement instead, which can allow lower brokerage but changes the ownership and protection arrangements.

Moneysmart says that under an omnibus arrangement, investors are not the legal owner and have fewer protections, including the ability to claim against the National Guarantee Fund if something goes wrong. Read the provider’s terms to understand how holdings are recorded and how voting and corporate actions are handled. See Moneysmart’s HIN explanation, last updated 26 June 2025.

Check licensing, disclosures and comparison-site incentives

Check the provider’s relevant licence or authorisation on ASIC registers, then read its current terms, disclosures and fee schedule. Do not rely on a ranking alone to establish that a provider is suitable.

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Comparison websites may earn money from sponsored links or commissions, or by selling personal information; their rankings may not explain the criteria used. Treat a comparison site as a starting point, inspect its methodology and verify details directly with providers. Moneysmart’s guide to using comparison websites was last updated on 21 September 2026.

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Match account mechanics to your trading

Before opening an account, check how you add funds, how trades settle, which order types are available, and what confirmations and holding statements you receive.

  • Market order: buys at the next available price.
  • Limit order: sets the maximum price you will pay and executes only if the market reaches that price.

Moneysmart describes sale proceeds arriving two business days after the trade day (T+2). Check the provider’s current process and timing so you know when proceeds will be available.

A practical broker-check list

  1. Estimate the size and frequency of your likely buys and sells, then compare brokerage for both sides of the trade.
  2. Add any platform, inactivity or overseas-share foreign-exchange charges that apply to your intended use.
  3. Confirm whether holdings use an individual HIN or an omnibus arrangement, and read the terms on ownership, voting and corporate actions.
  4. Check the provider’s relevant licensing or authorisation and read its current disclosures and fee schedule.
  5. Confirm funding, settlement, order types, confirmations and holding statements meet your needs.
  6. Verify all details directly with the provider before opening the account.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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ASIC MoneysmartASXinvestingonline brokersshare trading

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