How to Buy Shares in Australia — Step-by-Step Guide (2026)
This article provides general information only and does not constitute financial advice. For advice tailored to your situation, consult a licensed financial adviser. Learn more.
Contents
Buying shares in Australia is straightforward once you understand the steps. You need a brokerage account, a funded bank account, and a Tax File Number (TFN). From there, you can buy shares in any ASX-listed company or ETF during market hours. Here is the complete process.
What You Need Before You Start
- Tax File Number (TFN) — required to avoid withholding tax on dividends
- Bank account — to fund your brokerage account
- Photo ID — driver’s licence or passport (for identity verification)
- At least $500 — enough to make brokerage cost-effective on most platforms
Step 1 — Choose a Brokerage Platform
A brokerage account is your gateway to the ASX. Popular Australian options:
| Broker | Brokerage per trade | CHESS sponsored | Best for |
|---|---|---|---|
| CommSec | $10–$19.95 | Yes | Beginners wanting bank-backed security |
| SelfWealth | $9.50 flat | Yes | Active investors, flat fee |
| Superhero | $2 (shares), $0 (ETFs) | Yes | Low-cost trading |
| Pearler | $6.50 | Yes | Long-term DCA investing |
| Stake | $3 | No (custodial) | Low-cost, ASX and US shares |
| Interactive Brokers | ~$3–$6 | No (custodial) | Sophisticated investors |
CHESS vs custodial: CHESS-sponsored accounts mean shares are held in your name on the ASX’s settlement system (HIN — Holder Identification Number). Custodial means the broker holds shares on your behalf. Both are legitimate, but CHESS-sponsored provides direct ownership.
Step 2 — Open and Fund Your Account
Complete the online application — typically 10–15 minutes:
- Enter personal details and TFN
- Complete identity verification (upload ID)
- Link your bank account (BSB and account number)
- Await account approval (same day to 1–2 business days)
Then transfer funds from your bank. Most platforms accept direct bank transfer (no fee). Some accept BPAY. Credit card deposits are not standard.
Step 3 — Search for the Share or ETF
Once funded, log into your brokerage platform and search by:
- Company name (e.g., “Commonwealth Bank”)
- ASX ticker (e.g., CBA for CommBank, BHP for BHP Group, VAS for Vanguard Australian Shares ETF)
The ASX ticker is the 3–5 letter code that uniquely identifies each listed security.
Common ASX tickers:
| Company/ETF | Ticker |
|---|---|
| Commonwealth Bank | CBA |
| BHP Group | BHP |
| CSL Limited | CSL |
| Woolworths | WOW |
| Vanguard Aust. Shares ETF | VAS |
| Betashares All Growth ETF | DHHF |
Step 4 — Place Your Order
Two main order types:
Market Order
Buys immediately at the best available price. Fast and simple — you get the current market price. Recommended for liquid shares and ETFs with tight bid/ask spreads.
Limit Order
Sets a maximum price you are willing to pay. The order only executes if the market reaches your price. Useful for less liquid shares or if you want to control your exact purchase price.
For most beginners buying popular ETFs: a market order during ASX trading hours is appropriate.
Step 5 — Confirm Your Order
Review the order details:
- Security name and ticker
- Number of units or shares
- Order type (market/limit)
- Estimated total (price × units + brokerage)
Confirm the trade. The system generates a contract note confirming the transaction details — keep this for tax records.
Step 6 — Settlement (T+2)
Shares settle two business days after the trade date (T+2). This means:
- Money leaves your account and shares appear in your portfolio two business days after purchase
- You cannot sell shares you have bought until settlement completes
Step 7 — Track Your Investment
After purchase:
- Shares appear in your brokerage portfolio
- Dividends are paid to your linked bank account (or reinvested via DRP)
- Annual tax statements issued by most brokers (or use Sharesight for detailed tracking)
- Keep your contract notes for CGT calculation at time of sale
Tax Records — Critical From Day One
Each purchase creates a tax record you will need when you eventually sell:
- Date of purchase
- Price per unit
- Number of units
- Brokerage cost (adds to cost base)
Keep all contract notes. Sharesight (popular in Australia) tracks this automatically and generates ATO-ready CGT reports.
Related Articles
- Best Broker Australia (2026)
- Market Orders vs Limit Orders on the ASX
- Brokerage Fees in Australia
- CHESS Sponsored vs Custodial
- ASX Shares hub
- Investing hub
Frequently Asked Questions
Can I buy shares in Australia without a broker? No — all ASX trades must be placed through an ASIC-licensed broker. However, modern online brokers (Superhero, Pearler, CommSec) make the process fully digital and available to anyone with a bank account and TFN.
What is the minimum amount I need to buy shares in Australia? The ASX has a $500 minimum for initial share parcels in most securities (known as the minimum marketable parcel). ETFs may allow smaller amounts depending on the price per unit. Brokerage also needs to be considered — $9.50 brokerage on a $200 purchase is 4.75%, which is too expensive.
How long does it take to buy shares in Australia? The order itself takes seconds to place and executes within seconds to minutes for liquid securities. Settlement takes two business days (T+2). From opening an account to your first share purchase can be done in a few hours if account verification is instant, or up to 2 business days if manual review is required.
This article provides general financial information only. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.