How to Buy Shares in Australia: A Step-by-Step Beginner's Guide

General information only. This is not financial advice. Investing involves risk, including the loss of capital. Consider seeking advice from a licensed financial adviser before investing.

Buying shares in Australia is genuinely straightforward. The barrier isn’t complexity — it’s inertia. Once you’ve opened a brokerage account and made your first trade, the process is demystified entirely.

Here’s how to do it from scratch.

Step 1: Choose a Broker

You need a brokerage account to buy ASX-listed shares or ETFs. In Australia, your options fall into roughly two categories:

Low-cost online brokers (best for most beginners):

• Pearler — designed specifically for long-term investors, with automatic investing on a schedule and low brokerage ($6.50/trade for standard, free on some ETFs). Best for index fund investors.
• SelfWealth — flat $9.50 brokerage regardless of trade size. Good for regular investors.
• Stake — $3 brokerage, simple app, US market access included. Good for beginners who also want international exposure.

Traditional brokers (more features, higher costs):

• CommSec (CBA) — the most widely used broker in Australia, integrated with CBA banking. Brokerage from $10 for trades under $1,000.
• NABtrade — similar to CommSec, integrated with NAB banking.

For a beginner buying broad market ETFs monthly, Pearler or SelfWealth offer the best combination of low cost and appropriate features.

Step 2: Open Your Account

Online brokerage accounts require:

• Australian residency
• Tax File Number (TFN)
• Bank account for fund transfers
• Government-issued ID (driver’s licence or passport)

Verification takes minutes for most brokers. You’ll be approved within 1 business day in most cases, sometimes immediately.

For accounts in your own name: straightforward. For joint accounts, super funds, or company accounts: more documentation required and the process takes longer.

Step 3: Fund Your Account

Transfer money from your bank account to your brokerage account via BPAY or bank transfer. Most brokers hold your cash in a settlement account that earns minimal interest — don’t leave excess cash sitting there longer than needed.

Step 4: Decide What to Buy

The evidence consistently shows that most investors — professional and amateur — don’t beat simple index funds over the long run. For a first investment:

VAS (Vanguard Australian Shares Index ETF) gives you exposure to the 300 largest ASX-listed companies in proportion to their market size. One purchase gives you partial ownership in the big banks, miners, retailers, healthcare companies, and more.

VGS (Vanguard MSCI Index International Shares ETF) gives exposure to 1,500+ companies in developed markets internationally — US, Europe, Japan, UK. Complements VAS with international diversification.

Buying both VAS and VGS in a 50/50 or 60/40 (domestic/international) split is a sensible starting portfolio for most Australians.

Step 5: Place Your Trade

In your broker’s app or website:

1. Search for the ticker (e.g. “VAS”)
2. Choose order type — Market (buys at the current price) or Limit (buys only if the price reaches a level you set)
3. Enter the number of units or dollar amount
4. Review and confirm

The trade settles in T+2 (two business days). The shares appear in your account the next morning.

Step 6: Track and Continue

Investing is most effective as a habit, not a one-time event. Set up a monthly automatic investment if your broker supports it (Pearler does this well) and check your portfolio no more than quarterly.

Checking daily creates anxiety and poor decisions. Checking quarterly keeps you informed.

The Numbers That Matter

A $500/month investment in a broad market index fund earning 7% annually (a conservative historical estimate) compounds to approximately $590,000 over 30 years. Starting earlier matters more than the exact investment chosen. The best time to start was 10 years ago. The second best time is today.