Broker
A broker is a service or platform that lets you buy and sell shares on the ASX.
Quick reference:
Types: CHESS Sponsored, CFD. Role: Connect investors to the exchange. Fees: Brokerage charged per trade.
Features: Research, advice.
Expanded explanation:
You cannot trade directly on the ASX as an individual. You need a broker to place buy and sell orders for you. Online brokers are the most common, providing low-cost access through apps and websites. Full service brokers still exist and provide personal advice but usually charge higher fees.
Brokers also decide how your shares are held. In Australia, CHESS sponsored brokers record your holdings directly in your name, while CFD brokers let you trade using contracts without direct ownership. Beginners often start with CHESS sponsored brokers for safety and transparency.
Related links + Articles:
• CHESS (Term)
• CFD (Term)
• Types of ASX Brokers (Article).