FXOpen: Share trading in Australia made simple
Advantages of shares trading with FXOpen
Trade share CFDs with FXOpen with up to 1:5 leverage.
Multiple Markets. Multiple Instruments.
FXOpen isn't just an online share trading platform. You can expand and diversify your trading portfolio with forex trading, indices, commodities, and cryptocurrency CFDs* too.
Be confident when you're investing in shares in Australia
As a broker, we're fully authorised and regulated by ASIC in Australia. Your funds are held securely in segregated Australian bank accounts.
Place share trades direct from the chart
With multiple manual equity trading options, you can place three types of order: market, limit, and stop. Other features include trailing stop and one-click trading.
Automated share trading access
Download and use ready-made scripts and expert advisors. Or you can create your own custom scripts and indicators based on your unique share trading strategy.
Analytics available at your fingertips
Make better informed global equity trading decisions. More than 50 built-in indicators and graphic tools provide technical analysis, quotes history, strategy testing, news and more.
Share trading explained
By investing in shares in Australia or elsewhere with FXOpen, you can use derivative products to speculate on the future share price of a company. The value of that derivative is based on the underlying market. It gives you the ability to take a long or short position based on how you think the stock will perform.
A derivative product means that you won't actually own the stock. What it does mean is that you can take a position that lets you profit from any change in its value – whether up or down. It also allows you to start online share trading with leverage for a fraction of the capital needed.
Investing in shares: How does it work?
With FXOpen, you can open a share trading account and start equity trading right away. It's all done using derivatives known as contracts for difference (CFDs). Instead of becoming an owner of any shares, you'll simply be taking a position on whether the price will go up or down.
One reason that share trading is growing in popularity is because you don't need large sums to get started. CFD trading gives full exposure to the share market with a smaller upfront investment using your leverage. It's then a case of predicting which way the share price is going to move.
With a CFD, you'll agree to exchange the difference in share price from when you opened your position to when you close it. If that price moves in the direction you predicted, you stand to profit. But if it moves the opposite way, your investment will turn into a loss.
Trader A makes a $1,000 trade on Company B's share price at $10.00
Trader A predicts that price will go to $12.50
Trader A buys 100 contracts at $10.00 a share
Company B's share price increases to $12.50
The initial trade value is $1,000, but the final value is $1,250
Before charges and commission, Trader A makes a gross profit of $250.
To get started with the FXOpen share trading platform, open your free share account today.
How to start share trading with FXOpen
New to share trading? Familiar with the equity trading process? Your level of experience doesn't matter. What counts is knowing what your plan is when you first take up an opening position. Only then can you truly know when best to edit or close your position.
From your FXOpen share trading account, you have access to the information you need to make the right decisions at the right time. Insight or instinct – develop your strategy in line with what you hope and expect to achieve. Just remember never to risk more than you can afford to lose.
The factors to look out for when trading in the equity market
Share supply and demand: If shares in a company are at a premium, high demand can outweigh supply – driving up the share price in the process.
Company news or updates: Annual reports, profit warnings or new products have the potential to drive a company's share price up or down.
Broader economic factors: Whether focusing on the Australian share market or beyond, economic announcements and policies can significantly impact share prices.
Market and industry trends: Though perhaps more a long-term consideration, any major trends within a specific market can affect a company's price. Airline stocks, for example, were negatively impacted by reduced travel during the Covid-19 pandemic.
Investor mood/confidence: In some cases, the share market can all come down to the confidence that investors have in a particular company or sector. There may not be any tangible reason – so it can be helpful to gain an understanding of any prevailing moods.
FXOpen: The best share trading platform for insightful investors
As you’d expect from the very best share trading platforms, you're in total control with FXOpen. We're here to enhance your trading experience no matter which positions you decide to take. To find out more, get in touch with our team today to find out more or take a look at our FAQs.
What is equity trading?
Share trading and equity trading are effectively the same thing. Both refer to a unit of ownership in a company - but there are slight technical differences to be aware of.
First, a 'share' is a single unit of ownership. 'Equity' is the total stake you hold in a company i.e., more than one share. You might have three shares – which is your total equity.
The second difference refers to the meaning of 'shares' and 'equities'. Typically, you hold 'shares' in a single company - but you could use 'equities' to describe the total amount you own in two or more companies.
So, when it comes to equity trading, you're buying and selling your total stakes in a company.
Why do people trade stocks and shares?
Shares are one of the most popular trading instruments for investors. There are many reasons to add shares and equities to your portfolio, including the liquidity available. The market is full of ongoing supply and demand – so it's always possible to find new and exciting opportunities with international equity trading.
There are other reasons too. For example, there's a clear and transparent correlation between a company's share price and its underlying value. The better it performs, the more likely it is for the share price to increase. Similarly, you can take advantage of volatility – especially when companies are more exposed to emerging economic or political events.
By trading shares as CFDs using leverage with FXOpen, another benefit is the smaller amount of capital needed. That leverage gives you full exposure to the share market.
How much does online share trading cost?
When you trade shares using CFDs, you pay a small commission when opening and closing your position. Our commissions start from USD$1.5 per standard lot. The rate will depend on your Account Equity and Monthly Traded Volume. See our Knowledge Base for more details.
Taking a long position? There will be an additional overnight charge to consider.
If you have any questions, FXOpen is here to help. Get in touch with our team or use our live chat service, which is available from 8am to 6pm Sydney time, five days a week.
What to consider when trading stocks and shares
Like all trading, there is always risk involved if you choose to buy and trade shares. You can profit from online share trading. But using CFDs to buy shares will fully expose you to the share market and you may lose some – or all – of your initial investment. In some cases, losses can be rapid due to leverage. This means you should never risk more than you can afford to lose.
It is also worth making sure that you fully understand how CFDs work. They are complex instruments and the risk is significant. But if you're aware of all the risks involved, equity trading using CFDs can be highly rewarding.
Please take a look at our Knowledge Base for more support.
*Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under ASIC Rules. They are not available for trading by Retail clients.