Invest in yourself

At CommSec, we believe in the power of investing in yourself. And the best way to invest in yourself, is to find someone else who will.

From video tutorials to how-to guides, we've created an array of training resources to help you trade with confidence. More than that, we're here when you need live help over the phone and on email, plus you can talk to other experienced online investors in the CommSec Community.

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Share trading strategies

The best way to reach your investment goals is with a clear strategy. Here are some guidelines that may help you choose yours.

CommSec tools to monitor the market

When it comes to quickly mastering how to make the most of CommSec trading tools, nothing beats a simple demonstration.

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Why CommSec?

Mentorship comes in many forms. Covering customer service and support, research and trading tools, the CommSec Community and more.

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Open a CommSec Share Trading Account.

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Trade from $10.00

Buy and sell shares using a CommSec Share Trading Account with our cash account and seamlessly settle trades, transact and earn interest.

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Trade from $29.95

Buy and sell shares using a CommSec Share Trading Account with your existing bank account.

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Glossary

  • Asset Allocation  

    The proportion of all money invested in one group of assets versus other groups. Examples of how assets might be grouped are: Australian shares, international shares, listed property securities, direct property investments, cash, and fixed interest securities.

  • Assets  

    Resources owned by any entity - a company, an investment fund, etc. Investments are assets, and may be classified in various ways. For example, assets may be classified as Australian shares, international shares, listed property securities, direct property investments, cash and fixed interest securities.

  • Asset Class  

    See Asset Allocation.

  • ASX Code  

    A unique code used by the Australian Stock Exchange (ASX) to identify listed companies. For example, the ASX code for Commonwealth Bank is CBA.

  • Australian Stock Exchange  

    The Australian share market. The ASX brings buyers and sellers together to trade listed investments in shares, unit trusts, options, and some fixed interest securities.

  • Bear Market  

    A market characterised by falling security prices (opposite to bull market).

  • Bid  

    A bid is an offer made by an investor to purchase a stock (opposite to offer).

  • Bond  

    A debt security, rather than a share. Bonds are usually issued by governments and large corporations in return for a principal amount on which interest is paid to the investor for a specified time. The interest rate is fixed - thus the reference to fixed interest security which is applied to bonds and debentures. The principal amount invested is repaid to the investor on maturity.

  • Broker  

    An individual or trading firm that charges a fee/commission for executing buy and sell orders for an investor.

  • Brokerage  

    It is a fee that stockbroker charges for executing buy and sell orders on a licensed financial market for clients. Brokerage may be calculated as a percentage of the value bought or sold, or may be a flat fee for service.

  • Bull market  

    A market characterised by rising security prices (opposite to bear market).

  • Capital Loss  

    The difference between the proceeds of sale of an investment asset and the cost. If the proceeds of sale are less than cost, a capital loss is made.

  • Capital Gain  

    The difference between the proceeds of sale of an investment asset and the cost. If the proceeds of sale exceed cost, a capital gain is made.

  • CHESS  

    CHESS stands for Clearing House Electronic Sub-register System. The CHESS Settlement Facility is a computerised share registry and settlement system operated by the ASX Settlement & Transfer Corporation Pty Ltd (ASTC), a subsidiary of the Australian Stock Exchange (ASX). CHESS records an account's share ownership via the ASX's computer-based share and settlement transaction system.

    CommSec CHESS sponsored stock means your shares are held with your broker, CommSec, on the ASX’s CHESS system. You have a holder identification number (HIN) which applies to all stocks held on your CommSec account when you are CHESS sponsored

  • Commission  

    The fee or payment made to an agent for services such as arranging sale of shares, purchase of a home, etc. Also referred to as brokerage.

  • Contract Note  

    Document sent by a stockbroker to a client confirming a purchase or sale of a security, showing details of the transaction, price, brokerage and other charges involved.

  • Cross Trade  

    A cross trade occurs when a broker executes an order to buy and sell the same security at the same time, in which both the buyer and seller are clients of the broker. A Cross Trade is represented by XT in the course of sales. If your order has been cross traded you will be able to view this on your confirmation contract note where it will be stated as 'Crossed Trade'.

  • Diversified Portfolio  

    A portfolio which contains assets across more than one asset class (eg property, shares, fixed interest). The aim is to reduce risk while achieving a balanced return.

  • Dividend  

    Is a payment made to shareholders from the company. This payment is a portion of the company's profits paid out to shareholders. ASX companies pay dividends twice a year, usually as an 'interim' dividend and a 'final dividend'.

  • Exchange Traded Fund (ETF)  

    An ETF is a listed fund that aims to track the performance of a basket of shares that make up a particular index. ETFs aim to replicate the performance of a particular index (such as the S&P/ASX50), and therefore are made up of the same shares as the relevant index.

  • Growth  

    Describes an investor or a managed fund that aims to achieve steady capital growth over a medium to long term investment horizon.

  • HIN  

    A Holder Identification Number, also known as a HIN, is a unique number that will identify you as CHESS/Broker Sponsored holder. When you are CHESS sponsored with a Broker you will be issued with a unique number. This unique number can register multiple holdings under the single HIN. A HIN starts with the letter X and followed by ten numbers e.g. X0001234567.

  • Initial Public Offering (IPO)  

    The first time a company's shares are offered for sale to the public.

  • Issuer Sponsored holding  

    An Issuer Sponsored holding is maintained by the issuer of your shares. All details related to your holdings are maintained by the Issuer at the Share Registry. Your Issuer Sponsored holding can be identified by an 'I' at the start of your Shareholder Reference Number (SRN) which is printed on your holding statement. 

  • Limit order  

    Limit orders allow you to set a maximum purchase price for your buy order, or a minimum sale price for your sell orders. If the market doesn't reach your limit price, your order will not be executed.

    You can place an 'At Limit' order during market hours. You can also place an 'At Limit' order when the market is closed and it will be queued ready for processing when the market opens. Please note that an 'At Limit' order will not be accepted, without any advice to you, if we consider the limit price to be too far away from the prevailing market price of that stock.

  • Market order  

    Market orders will go into market to execute at the best available price, however the execution and the price is not guaranteed. Market orders cannot be accepted outside of market hours or when trading in a particular stock is halted or suspended.

  • Minimum Marketable Parcel  

    The minimum amount you are able to purchase online is $500 worth of shares, warrants or CFDs. There is no minimum for Exchange Traded Options.

  • Offer  

    Offer is the price the seller is offering to sell the stock (opposite to bid).

  • Portfolio  

    The collection of a person's financial assets. Portfolios can be expressed by asset class (eg shares, fixed income securities, property, cash etc), or itemised within the asset class into the individual stocks or securities.

  • Securities  

    The different types of investments offered by entities such as companies and government authorities. Shares, debentures and bonds are examples of securities.

  • Settlement  

    Settlement for your trades takes place two trading days after the trade, known as T+2. Cleared funds must be available in your nominated account at the start of the second trading day after your 'Buy' order is executed.

  • Shareholder Reference Number (SRN)  

    Also known as SRN is a unique number that identifies you as an Issuer Sponsored Holder with a listed company. A SRN usually starts with a letter 'I' followed by numbers e.g. I00012345678. If you hold shares in more than one company and choose to be Issuer Sponsored, you will have a different SRN for each shareholding.

  • Share  

    An equity or part ownership of a company.

  • Share Price  

    Is the price of a single share of a company

  • Share Registry  

    Share Registry – Is an organisation that provides stock registration and transfer services to companies listed on stock markets including the Australian Securities Exchange (ASX) and Chi-X.

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Disclaimer

This site is directed and available to and for the benefit of Australian residents only. © Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 ("CommSec") is a wholly owned, but non guaranteed, subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and both entities are incorporated in Australia with limited liability.

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