What is a stock broker and do i need one?

What is a stock broker and do i need one?

A stock broker is a service or platform that allows you to buy and sell shares on the stock exchange. In Australia, you cannot buy shares directly on the ASX yourself. You need a broker to place the orders on your behalf. Brokers can be online platforms that simply execute your trades for a low fee, or full service brokers who also provide advice and research for a higher cost.

If you want to invest in shares, you do need a broker of some kind. Beginners usually open an account with an online broker, which is fast, simple, and relatively cheap. Your broker handles the process of connecting you to the market recording your ownership, and giving you access to your account online.

Chosing the right broker comes down to what you need. If you want to buy and sell shares yourself, an online discount broker is likely enough. If you want personalised advice, you may choose a full-service broker, but the cost will be far higher.