Share Trading

A CMC Markets Stockbroking account gives you access to a dynamic share trading platform. It provides a wide range of trading tools, such as advanced charting packages, and is also available as a mobile app. You can trade on a variety of shares, including companies listed on the Australian Stock Exchange (ASX) and Sydney Stock Exchange (SSX). As Australia's Best Value Online Broker,
our brokerage fees start from just $9.90 per trade.*

Apply now to access our share trading platform

What is share trading?

Share trading is the buying and selling of company stock with the aim of making a profit. It allows you to obtain legal ownership in a specific company. Once you have shares in a company you own part of the underlying asset. This means you can receive company dividends and are able to vote in company meetings.

When you buy or sell shares, the trader enters into a contract to exchange the legal ownership of the shares for money. This exchange is called ‘settlement’ and usually occurs two business days after the trade takes place. You can purchase shares through a broker, using individually-held electronic funds or leverage your share trading using a margin loan from a margin loan provider.

A CMC Markets stockbroking account enables you to easily and efficiently access the direct share market. It includes competitive online brokerage, order processing in less than a second, and unlimited free conditional orders for all clients. Our stockbroking platforms also gives you access to in-built fundamental research and risk analysis tools.              

             

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What are shares?

Shares are units of ownership in individual companies. Owning shares entitles the holder to a proportion of the companies’ profits. When you share trade, profits come from increases in the value of company shares and the payment of dividends to shareholders, and these are based on company performance.

Investors have seen the stock market offer better long-term returns than many other investments. With low minimum investments, you don’t need significant capital to get started and there are thousands of companies across a wide range of market sectors for you to choose from.

             

What to trade?

ASX-listed

Choose from an extensive selection of Australian shares. There are over 2200 companies listed on the Australian Securities Exchange (ASX), covering most sectors of the Australian economy including financial services, industrials and healthcare. Use the integrated technical and fundamental research available on our share trading platform to identify opportunities and build a diversified investment portfolio.

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SSX-listed securities

We were the first accredited broker to offer our clients shares through the Sydney Stock Exchange (SSX). Via the SSX, CMC Markets Stockbroking clients have the opportunity to invest in growth-oriented companies across Australia and Asia. Note that trading SSX shares is limited to phone trading. 

View our SSX FAQs.

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T+2 settlement

When you buy or sell shares, warrants, ETFs and other listed instruments through a CMC Markets share trading account, you enter a contract to exchange the legal ownership of those instruments for money – this exchange is called 'settlement'. In today’s market, standard settlement occurs two business days (T+2) after a trade takes place.

What’s the difference between CFD and share trading?

Find out more

How to trade shares

Investors typically buy and sell shares using a stockbroker. Researching a broker is important, as commission rates and fees can differ between them, although the process of buying and selling shares will generally be the same. CMC Markets stockbroking is Australia's Best Value Online Broker. Our share trading platform is available in both desktop and web versions, so you can trade how you want, when you want.

When it comes to trading stocks, you can choose to either buy or sell via your share trading account. If you want to buy shares, you would make a bid. If you want to sell shares, you would make an offer. The bid is the highest price someone in the market is willing to pay, while the offer is the lowest price someone is willing to sell. There are a number of different types of orders you can place, such as market order and limit order. Which type of order you use depends on your trading goals.

How to trade shares with the CMC stockbroking platform

Example: finding the stock for company XYZ
 
In this example, you want to find the stock for company XYZ. You can either look at the top shares for the day on the dashboard, or search for the company by its name or code.
 
Select the company from the menu to access the company’s market data, course of sale, research, charts and more.

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Placing a trade for XYZ
 
In order to place a trade for company XYZ, go to the ‘Trade’ option on the menu bar. You can choose to ‘buy ‘ or ‘sell’ directly from the menu

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This will display the ‘Place order’ form. The same order form is used for both buying and selling a stock.
You need to provide the following details to place the trade:


  • The stock field will show the company whose stock you are buying. Here it is XYZ
  • On order type select ‘Buy’ or ‘Sell’ depending on your order
  • Specify the number of shares you want to buy in the quantity field, which in this example is 100.
  • Select the order instructions – choose between ‘Limit price’, ‘At market’, or ‘Conditional order’*. These are conditions set to mark the price at which you will place a trade for XYZ
  • You can also place an expiry on the order by setting one of the ‘Expiry definitions’**
  • The final step is to enter your trading PIN to confirm the order
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*Order instructions:
Limit price – a maximum price on a buy order or a minimum price on a sell order. If the market doesn’t reach the set price, the order won’t be executed.
At market – an order that you use to specify the direction and size of a trade, but not the price which could be placed three price steps above or below the last sale. This ensures your order will be filled as quickly as possible.
Conditional order – an order that sets a ‘trigger’ to execute based on a set of criteria or market conditions.
 
**Expiry definitions:
Good till cancelled – the order will not expire until it is filled or the stock is purged by the ASX.
Day only – this type of order will expire at the end of the day if it has not been filled.
Stop loss – an option to submit an order to the market to close your position when the price reaches your specified stop-loss level.
Take profit – an option to submit an order to the market to close an open position at a more profitable price compared to the price when placing the order

Having found the company XYZ, you can see the stock is currently valued at $10. Let’s assume that you think XYZ’s price will rise in value, and you want to buy 100 shares of XYZ.

Scenario 1 – buy at a limited stock price
 
You want to buy the shares at $10 each, so choose the limit price option to freeze the order at that price. The buy order will not be processed unless the share value is the same.

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Outcome A: Profitable trade
Your prediction was correct and the price for XYZ increased during the next week from $10 to $12. The value has moved $2. Multiply the moved value with the number of shares you bought (100 shares) to calculate your profit if you choose to sell at that point: $2 x 100 = $200.
 
Outcome B: Losing trade
Unfortunately your prediction was wrong and the price for XYZ dropped during the next few weeks from $10 to $6. The value has moved $4 against you. Multiply the moved value with the number of shares you bought (100 shares) to calculate your loss if you choose to sell at that point: $6 x 100 = $400.

Scenario 2 – buy at market price
Just before you placed the order, you found that the stock price started to move higher than $10. You now believe that the company stock is going to rise and want to place an order for the stock immediately.
 
Select the ‘At market’ option, which will lock the price three steps above the last trade at the time of your order. This type of order is normally filled quickly

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Outcome A: Profitable trade
Your prediction was correct and the price for XYZ increased quickly after your order was processed. The value has moved $5 from $10 to $15. Multiply the moved value with the number of shares you bought (100 shares) to calculate your profit if you choose to sell at that point: $5 x 100 = $500.

Outcome B: Losing trade
Unfortunately the price for XYZ dropped considerably. At the time of placing the order the stock price was at $10, but when your order was processed the value dropped to $9.90. Even though you bought the stock at a lower price, the stock went on a downward spiral, with the value resting at $4 by the end of the month. So the moved value is ($9.90 - $4 = $5.90). Multiply the moved value with the number of shares you bought (100 shares) to calculate your loss if you choose to sell at that point: $5.90 x 100 = $590
 
 

Stay on top of your trading whilst on-the-go
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Learn to trade markets

Learning to trade the markets involves much more than opening a trading account and placing a trade. It is important to research your trading strategy and the markets you intend to trade. Learning how to analyse charts for example is an essential aspect of trading. Technical and fundamental analysis are two differing but useful types of analysis which can help when developing a strategy. Find out more about market analysis.

*Brokerage cost per trade is based on trading Australian shares 11 times/month under the Active Investment Tier of our Frequent Trader Program. This fee applies to a trade size of up to $10,000.            



Awards that stand for value and service

CMC Markets officially offers the best value in Australia* when it comes to share trading. You get the lowest brokerage available, alongside powerful trading tools, great service and a rewarding frequent trader program.

CMC Markets
  • CANSTAR Online Share Trading Best Value Australia 2011, 2012, 2013, 2014, 2015, 2016, 2017 and 2018*
  • CANSTAR Online Share Trading Outstanding Value Australia, casual investor 2011, 2012, 2013, 2014, 2015 , 2016, 2017 and 2018*
  • 2016 ABA100 Winner for Business Innovation in The Australian Business Awards for our Pro platform
  • The highest satisfaction rating for brokerage, platform navigation and charting, Investment Trends 2017**
  • Cheapest Online Broker, Money magazine Best of the Best award 2011, 2012, 2013, 2014, 2015,2016 and 2017
  • Cheapest Online Broker, Smart Investor Blue Ribbon Award 2011, 2012 and 2013

*CANSTAR Online Share Trading Best Value Australia 2011-2018. CANSTAR Online Share Trading Outstanding Value Australia, Casual Investor 2011-2018. CANSTAR Online Share Trading Outstanding Value Australia, Active Investor 2013
** By own client satisfaction. Investment Trends 2017 First Half Online Broking Report, based on a survey of over 15,000 investors/traders.


Switch to CMC Markets Stockbroking

Change your online broker to CMC Markets Stockbroking for: 

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  • Award-winning proprietary trading platforms with mobile solutions
  • Powerful trading tools and advanced charting packages
  • Robust risk management functions including free unlimited conditional orders
  • A Frequent Trader Program to cater to your trading needs

You might also be interested in:

Frequent Trader Program

Check out what benefits your share trading activity could make you eligible for.


More on Frequent Trader Program

Funding options

 Learn how you can fund your trades with individually-held electronic funds or a linked margin loan.

More on funding options

CFD Trading

Access 10,000 products with competitive spreads and low margins.


More on CFD trading

Open an account

Access our full range of stockbroking products and share trading tools.

Sell your shares

Use our one-off sale service to sell your issuer-sponsored shares.

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