What is share trading?
Share trading is the buying or selling of company shares on a stock exchange. Currently there are 2 exchanges in Australia: the main one is the Australian Stock Exchange (ASX) and the other one is Chi-X, which launched into the Australian market in 2011. The two exchanges provide improved market liquidity and competition, which drives transaction costs down.
To buy and sell shares, investors need to open an account with a market participant or a broker. There are different types of brokers. A full-service broker can provide you with investment advice and manage your orders for a fee. Online platforms such as ThinkMarkets allow self-directed investors to place their own orders at a cost-effective brokerage fee compared to a full-service broker.
Investors in shares can receive two types of returns, capital gains via movement in share prices and income via dividend payments.