Investing models: What’s the right fit for you?
- There are more ways than ever for new investors to get into the share market.
- It helps to understand your options and choose the right investment model.
- Here are three different styles of accounts that might work for you.
This may come as a surprise, but you don’t always need a lot of insider knowledge or even money to buy shares. These days, there are plenty of ways for new investors to enter the market.
“When I was 18, my parents had never invested in shares and it seemed intimidating,” says Steven Daghlian, a CommSec market analyst. “Now you can invest as little as $50 and learn how the market works as you trade.”
The key for new investors is to clear the first obstacle: choosing the right investing model.
3 ways for new investors to buy shares
What is it: CommSec Pocket is a user-friendly investing app that makes investing simple. You can choose from 10 different exchange-traded funds (ETFs), which are like baskets of shares or other investments grouped by themes like Global 100, Aussie Top 200, Sustainability Leaders and Tech Savvy. You can invest as a one-off trade, or set up regular, automated investments - it's perfect for anyone new to trading who wants to dip their toes in with small amounts.
Upside: One of the best things about CommSec Pocket is the low entry point - you can start investing with just $50. Plus, with the variety of ETFs, you can pick and choose based on themes that interest you. The option to set up automated investments makes it super convenient, and it's a great way for beginners to learn about trading without a big commitment.
Risks: Of course, like any investment, there are risks. Market conditions can cause the value of your ETFs to go up and down. Also, since you're investing in ETFs, you have less control over individual stocks. And while the fees are low at $2 per trade, they can add up if you're making frequent transactions.
Need-to-know: Its free to join and there are no account-keeping fees with CommSec Pocket. It's straightforward and affordable - you pay only $2 each time you invest or sell up to $1,0001.
What is it: With a CommSec Share Trading Account, you can buy and sell Australian shares from over 2,000 companies listed on the Australian Stock Exchange (ASX). Unlike CommSec Pocket which focuses on just ETFs, this account is perfect if you want more freedom and variety in your trading choices.
Upside: You get to pick and trade individual stocks as well as ETFs, which is great if you enjoy having more options and want to take a hands-on approach with your investments.
Risks: No investing is completely risk free, and with this account the starting investment is $500 - a decent sum of money to lose if your shares drop in value and you choose to sell. Take a look at ‘How to manage risk when investing’ for tips on how to manage risk.
Need-to-know: Opening a CommSec Share Trading Account is free and there are no monthly or ongoing account fees. While you can trade from as little as $52, there is a minimum starting investment of $500. You’ll enjoy control and choice over where you invest.
CommSec International Shares Account
What is it: A CommSec International Shares Account is a great option if you’re feeling adventurous and want to explore global markets. With this account, you can invest in top share markets around the world, like the New York Stock Exchange and NASDAQ. You can even buy fractional shares, which means you can invest in big names like Apple and Microsoft without having to buy a whole share3. It’s perfect for small investors wanting a taste of the global market.
Upside: You get to spread your investments across major international markets and get access to some of the world’s leading companies, like Tesla, Shell, Shopify and Toyota.
Risks: Investing internationally does come with some extra risks which can impact your returns, like currency fluctuations.
Need-to-know: A CommSec International Shares Account is free to open, and fees can vary by country. International investments are subject to currency changes, but if you want to explore global opportunities, this account could be a great fit.
- Trades over $1,000 are charged at 0.20% of the trade value.
- To be eligible, you must trade online, be CHESS Participant Sponsored with CommSec and settle your trades through either a Commonwealth Direct Investment Account (CDIA) or a CommSec Margin Loan.
- Fractional shares are available in select US and European shares. Click for more information.
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Important information
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