Getting started with investing can feel overwhelming, but it’s not! It’s simpler than most people think. I, for example, started when I was only fourteen! If that doesn’t show you that the setup stage is doable, then I’m not sure what else will.
Note* (If you are under 18 and wish to start investing, you will need to set-up and account connected with your parents who will act as a trustee – as I did all those years ago)
Step 1: Open a Brokerage Account
Before you can invest in a single stock or fund, you need a brokerage account – or in other words, just downloading an app and buying stocks through there. The reason we need a brokerage account at all is that we can’t all physically stand on the trading floor now, can we? That’s what the broker’s role is.
Choose a broker – For Australian investors, popular options include SelfWealth, Pearler, CommSec, or Stake. Compare fees, ease of use, and available investments before deciding. Visit the broker’s website – Head to your chosen broker’s official website and click “Open an Account” or “Sign Up.” For this blogger and passionate investor, his broker of choice is Stake – enter my referral code when you sign up to support this page! “sarahw257”
https://hellostake.com/au/signup
Stake is a fantastic service because it provides you with access to both the U.S. and Australian markets for as little as $3 per trade in the region’s currency. What this also means is that if you have questions about how brokerage works, you are incentivized to buy and sell stocks with as much money as possible at once. If you decide to buy $100 worth of a stock, your $3 brokerage fee works out to be a 3% commission. If you wait until you can purchase $1,000 worth, it dwindles down to a meagre 0.3%!
Provide your personal details: you’ll need to enter your full name, date of birth, residential address, email address, and phone number.
Verify your identity – Most brokers require a government-issued ID, such as a driver’s licence or passport, to comply with regulations.
Enter your Tax File Number (TFN) – This is important for tax purposes. Without it, your broker is required to withhold tax at the highest rate on any investment earnings.
Link your bank account – Connect your everyday bank account so you can transfer funds in and out of your brokerage account easily.
Fund your account – Make your first deposit. Many Australian brokers have no minimum deposit, so you can start with as little as $500 or even less.
Confirm and activate: review your details, agree to the terms and conditions, and submit. Most accounts are approved within 1–3 business days.
Then after that, you’re ready to go!