Thinking about buying your first shares but don’t know where to start? You’re not alone. Stock trading is one of the most powerful ways to build long-term wealth, but the process can feel confusing at first. So, how do I start trading stocks? Let’s take a look.
In this guide, we break down exactly what you need to get started, from setting up your trading account to choosing your first stock. Whether you’re interested in Aussie blue-chip shares or global tech giants, here’s how to begin your trading journey with confidence.
What is Stock Trading?
Stock trading is the process of buying and selling shares, small ownership stakes in real companies. When you buy a share of a company, you become a part-owner, entitled to potential dividends and capital appreciation.
It’s important to distinguish between trading and investing. Trading usually refers to short-term buying and selling based on price movements, while investing focuses on long-term growth and value.
Australians are increasingly turning to the stock market to grow wealth, benefit from dividends, and access global innovation through international shares.
Step-by-Step: How Do I Start Trading Stocks
1. Choose a Trusted Broker – Macro Global Markets
The first step is selecting a reliable, ASIC-regulated broker. In Australia, ensure your broker is licensed under an Australian Financial Services Licence (AFSL). Macro Global Markets provides direct access to both ASX and U.S. stock markets and operates with CHESS sponsorship, meaning your shares are held securely in your name.
Look for low, transparent fees, fast execution, and access to real-time data, all available on Macro Global Markets. Don’t just settle for the banks if you can access a superior experience while you save on transaction costs as you go.
2. Open a Trading Account and CHESS HIN
Once you’ve set up your broker account, you’ll be assigned a Holder Identification Number (HIN) through the CHESS system, giving you direct legal ownership of your ASX shares. For the next step in this guide for How Do I Start Trading Stocks, you’ll need to provide:
- Proof of ID (driver’s licence or passport)
- Tax File Number (optional but helpful for dividend reporting)
- A linked bank account
3. Fund Your Account
After your account is approved, you’ll need to deposit funds to start trading. We support bank transfers, BPAY, or card payments.
If you plan to trade U.S. shares, you can easily convert your AUD to USD currency inside your Macro Global Markets account.
4. Research Your First Stock
Before placing your first order, spend time researching companies you’re interested in. Use tools like:
- Stock screeners to filter by market cap, sector, or dividend yield
- Analyst ratings and reports
- Financial news and earnings updates
Start with businesses you know and understand. For example, if you shop at Woolworths every week, that’s a great place to begin. You will get access to all of the above tools in your Macro Global Markets Account.
5. Place Your First Order
Now you’re set up to buy. You’ll be asked to choose an order type:
- Market order: Buys immediately at the best current price
- Limit order: Sets a specific price you’re willing to pay
- Stop order: Executes only once a certain price is reached
Example: If you want to buy $500 worth of Commonwealth Bank shares, you set a limit order at $112 per share and wait for it to fill. If you’re ok with the current market price you can place a market order.
6. Monitor and Grow Your Portfolio
After your first trade, track performance and news related to your stocks. Set alerts and rebalance your portfolio as needed.
Avoid emotional decision-making and stick to your strategy.
Understand Costs and Risks
Every investor should be aware of the fees involved:
- Brokerage fees: Charged per trade
- FX conversion fees: When trading international stocks
- Market data (applies to some stock market exchanges)
There are also risks:
- Share prices can fall and you could lose capital
- Market volatility can cause emotional decision-making
- Trading too frequently may incur losses or tax complications
Real Life Scenario: Meet Sarah
Sarah, a 29-year-old nurse from Brisbane, was new to investing. She opened an account with Macro Global Markets and deposited $1,000. She bought shares in BHP, and a U.S. ETF. Now, she reviews her portfolio monthly, reinvests dividends, and feels more confident about her financial future. Rather than think, how do I start trading stocks, Sarah now thinks about her next moves in the market.
Pro Tips From Experienced Traders – How Do I Start Trading Stocks
- Stick to sectors you understand, you’re more likely to spot risks early
- Use limit orders to avoid overpaying for shares
- Don’t obsessively watch prices, stay focused on long-term goals
- Write down your trading plan and revisit it regularly
Tools and Resources
Macro Global Markets provides powerful tools to support your journey:
- A user-friendly dashboard with order tracking and portfolio insights
- Custom alerts and real-time news
- Access to Morningstar reports for in-depth analysis
Watch our 60-second video demo to see how easy it is to place your first trade.
Beginner FAQ – How Do I Start Trading Stocks
Can I start with $100? Yes. With fractional shares and ETFs, even small investments can give you market exposure with US shares. The minimum marketable parcel for ASX stocks is $500, meaning you must buy at least $500 worth of any ASX share parcel.
Are my ASX shares secure? Yes. With CHESS-sponsored HINs, your shares are held in your name.
How are dividends paid? Dividends are automatically deposited into your linked bank account, often quarterly.
Do I have to pay tax? Yes, capital gains and dividends are taxable. Use the ATO’s online tools or speak with an accountant to stay compliant.
Bonus Download: 7 Trader Types eBook
Understand your trading type, learn the common mistakes new traders make and how to avoid them.
You don’t need to be a finance expert to start trading stocks. With the right platform, a clear plan, and smart tools, you can start building your portfolio today.
Ready to get started?
Create your free trading account with Macro Global Markets now and take your first step into the markets. Rather than think “How do I start trading stocks?”, make your move and advance your position today.