FatCat's MoneyConfessions - helping you save (& make) money, one click at a time

Seeking the cheapest online broker to trade Australian shares

Hello, I am trying to find some cheap online broker to trade Australian shares but so far nothing under AU $15 per trade which is a bit expensive if I start trading many times a day and for amount of less than AU $5,000 each trade.

Does anyone know a cheaper option, maybe an overseas broker? (as long as the money is safe just in case the broker goes broken!!)

Thank you

Best regards

▶ Reply to This

Replies to This Discussion

Permalink Reply by Bandwidth on October 1, 2008 at 4:57pm

I think you will have trouble getting below that.

If you use an overseas broker you can get caught with the exchange rate spread.

You may be able to find a broker that spealises in day trading.

I don't know your trading experience but day trading can be a very risky way to get started in the market place

▶ Reply

Permalink Reply by italiandragon on October 1, 2008 at 5:36pm

Hi Bandwidth,

thanks for your reply, I have been trading stocks and options since 1999 mainly in the European and American stock markets and I was doing daytrading a lot, sometimes even 50 times a day. (that`s what we call "scalping")

I know about the currency risk but still some broker would let you open accounts in foreign currency so for example it could be possible to find an overseas broker and having an account in Australian dollars. that would be nice.

Thanks

▶ Reply

Permalink Reply by Mary M on October 2, 2008 at 3:50pm

Hey italiandragon, Bandwidth is right - you'll struggle to get under $15 a trade, unless you go with someone who's prepared to give you frequent trader discounts. Sonray may do this, and perhaps FP Markets. I figure you're referring to Bell Direct with the $15 trade?

MM

▶ Reply

Permalink Reply by italiandragon on October 6, 2008 at 7:55pm

Hi Mary, thanks for your reply,

yes indeed it is Bell Direct and will have a look at the other 2 you suggest thanks!

▶ Reply

Permalink Reply by Michael Burhala on October 20, 2008 at 7:50pm

try this one www.interactivebrokers.com

▶ Reply

Permalink Reply by Mary M on October 23, 2008 at 12:35pm

Have seen them a lot on Bloomberg lately. What are some of the pitfalls in using an international broker?

▶ Reply

Permalink Reply by Bandwidth on October 24, 2008 at 8:17am

The danger of o/s brokers is lack of regulation, lack of funding, what they can do with your shares and or funds, Exchange rates, market meltdown, the tyranny of distance.