Best Australian Trading Platforms 2021
When smartphones first appeared, it wasn’t long before mobile applications were available to download. Many users now spend more time on their phones using applications than they do talking.
MindSea has put together some interesting statistics about mobile applications. It is estimated that 90% of the internet time on mobile devices is devoted to using applications. Speaking of applications, MindSea also reports that 100,000 new apps are released on the Play Store every month.
Out of all these existing and new apps for Android and iOS, one type is becoming more popular every month. Trading apps are now plentiful and allow anyone to get involved with bitcoin or Forex trading. They also allow individuals to start trading and investing in stocks.
If you wanted to trade in ASX quoted products then you would need a participant broker, and these apps make this easy. But which ones are the best, and which ones would suit you and your trading style?
Can you make money by trading online?
Before you can dream about how much money you might make, you should think about what your trading style will be.
You could look to the long-term and invest in businesses that you see being very successful in the future. Or, you could look at making several trades a day for a profit. You may like to try shorting the market.
Your trading style will to a degree define which Australian trading platform suits you.
With the right strategy and a good platform, it is possible to make money by trading. This could be from buying and holding shares, or from day trading.
Some caution is needed before you start trading
Although these trading platforms are all professionally made and have experienced brokerage firms behind them, there are no guarantees of making cash.
If you are a newbie then it is advised that you try trading platforms that allow demo accounts to be set up. This means that you can practice trading with real stocks but without investing any money. Once you feel you are ready you can then try trading with your own cash.
In 2020, Richard Dobatse told the New York Times how he had become a millionaire through an online trading platform. From an initial $15,000 he traded stocks up to $1 million, then lost it all. If you know what you are doing then it is an investment, if you don’t, then it is a gamble.
What are the best ASX trading platforms in 2021?
Some of the most popular and talked about trading platforms are listed below. Each of them can help you to achieve your goals for investing or trading with ASX products, but they differ from each other in small ways.
Here are some of the best Australian (and one New Zealand) trading platforms you can use now:
IG Share Trading
This could be a good platform for anyone that is contemplating or needs to be able to trade in different commodities. IG’s platform allows users to trade in global stocks, as well as CFDs, forex, and cryptocurrencies.
But, the platform may not be suitable for casual investors and traders as there is a quarterly fee for low activity.
Marketech
This company has over 20 years of experience in building trading platforms in Australia. The trading platform from Marketech allows stocks from the ASX to be traded in real-time.
Day traders using the platform to buy and sell stocks benefit from the live streaming pricing which allows them to execute trades with up-to-date valuations. Cash management accounts are created for each new user, and they are also supplied with a personal HIN.
However, anyone wanting to short the market will find that currently, this platform doesn’t allow it.
SelfWealth
Another Australian company designing trading platforms to help casual and serious investors. This company has only been around half the time that Marketech has but they have built a solid reputation.
Recently they included live pricing for their users for the first time. They have low brokerage fees too. One negative of this platform is that the global markets are severely restricted. Only US and ASX stocks are available.
Sharesies
This NZ platform has been voted as one of the best for newcomers. If you are looking to learn about stock trading for beginners then Sharesies may be a way to ease yourself into the market.
Sharesies pool funds and stock ownership which mean that they can avoid the minimum $500 investment that ASX requires. This feature allows users to invest just a few cents each time.
However, the downside is that they won’t have their own HIN or holder identification number.
Superhero
An Australian company that allows lower investments in the way that Sharesies does. The minimum investment in ASX products is only $100 with Superhero instead of the normal $500.
They can do this because the stocks you purchase are held beneficially in your name by a custodian. The downside is that if the custodian goes bankrupt you could have problems with your investment.
Summary
Out of these five Australian and New Zealand trading platforms, there should be one that meets your needs. One way to choose is to work out your trading style and then list the tools and features you feel will help you.
For instance, when trading online you will want to know how to stay secure, so look for security features, safe payment options, and personal CMAs and HINs.
Another feature that can help you enter the world of trading is live streaming price data, and don’t forget the brokerage fees. Fees can differ between the platforms, and some have inactivity penalties, so they are worth comparing too.
