How to Buy Shares in Australia (2026): Step by Step

Quick answer: To buy ASX shares you need an online broker account. Opening one needs photo ID, your bank details and ideally your tax file number. Search the company's ticker, choose how many shares and a price, and place the order during trading hours (about 10am to 4pm Sydney time). Most brokers require your first purchase of any company to be at least $500. The trade settles two business days later, and you then own the shares. You can usually do the whole process in a day.

This guide covers buying shares in individual companies. If you'd rather buy the whole market in one go, the steps are the same for an ETF; see our ETF beginners guide and ETF vs shares.

What you need before you start

Photo ID: a driver's licence or passport.
A bank account to transfer money in and receive sale proceeds and dividends.
Your tax file number (TFN). It isn't compulsory, but if you don't give it to the companies you invest in, they must withhold tax from the unfranked part of any dividend at the top marginal rate plus Medicare levy: 47%. You can claim it back in your tax return, but it's simpler to provide your TFN when you open the account.

Step 1: choose a broker, and how it holds your shares

You can't buy ASX shares directly from the exchange. Every purchase goes through a broker. Brokerage ranges from $0 to around $20 a trade depending on the broker and trade size; our broker comparison keeps a sourced, dated fee table.

The other choice that matters is how the broker holds your shares:

	CHESS-sponsored	Custodial
Whose name is on the share register	Yours, under your own Holder Identification Number (HIN)	The custodian's, holding the shares on your behalf
Statements	From the share registry, under your HIN	From the broker or app
Changing brokers	Transfer your HIN-held shares to another CHESS broker	Usually requires the provider to transfer, or selling and rebuying
Common with	Most traditional and many low-cost brokers	Some app-based platforms

According to the ASX, shares on the CHESS subregister are held under a HIN that your sponsoring broker operates under a sponsorship agreement, and all your broker-sponsored holdings sit together under that one HIN. Custodial models can be cheaper, but you're relying on the provider's custody arrangements, so read its disclosure documents before you choose.

Opening an account is online and usually takes 10–20 minutes, though ID checks can take a business day.

Step 2: fund the account

Transfer money from your bank to the broker. Depending on the broker, that's a linked cash account, a bank transfer or BPAY. Allow for the time it takes to arrive before placing your first order.

Step 3: decide what to buy

Every listed company has a three- or four-letter ticker code (for example, CBA for Commonwealth Bank). Before you buy:

Read what the company has told the market. Annual reports, results and announcements are all on the ASX's company announcements platform, free.
Be wary of tips. Social media share tips, especially on small companies, are a common route to losses and to outright scams.
Don't put everything in one company. A single company can fall a long way, or fail. Many beginners hold a broad ETF as the core of their portfolio and buy individual shares around it.

Step 4: place your order

In your broker's app, search the ticker, choose buy, then choose the order type:

Market order: buys straight away at the best price currently on offer. Simple, but in thinly traded shares the price can jump.
Limit order: you set the highest price you'll pay. It only fills at that price or better, and may not fill at all. For anything other than large, heavily traded shares, a limit order protects you from paying more than you intended.

When you can trade: the ASX's normal trading session runs from about 9:59:45am to 4:00pm Sydney time, with a pre-open from 7am when orders can be queued, and a closing auction from 4:10pm. Orders placed outside these hours wait for the next session.

The $500 first-purchase rule

Most brokers require your first purchase of any company to be worth at least $500, known as a "minimum marketable parcel". After that first purchase, you can usually top up with smaller amounts. The exact rule is set by each broker, so check yours if you plan to start small.

Step 5: settlement and ownership

ASX trades settle two business days after the trade (T+2). That's when your money goes out and the shares are registered to you (ASX Settlement). The ASX has been exploring a move to T+1, but no date has been set, so T+2 still applies.

For a CHESS-sponsored holding, you'll get a holding statement from the company's share registry. Register your bank account and TFN with the registry so dividends are paid without withholding.

After you buy: dividends and tax

Dividends are taxable income in the year you receive them. Many Australian companies attach franking credits, which reduce the tax you pay on the dividend or are refunded if your tax rate is lower than the company's. See how franking credits work.
Dividend reinvestment plans (DRPs) let you take new shares instead of cash. The new shares are still taxable as a dividend, and each DRP parcel needs its own cost-base record.
Selling triggers capital gains tax. For shares held more than 12 months, gains up to 30 June 2027 get the 50% discount. Gains from 1 July 2027 use inflation indexation with a 30% minimum tax rate under the 2027 CGT changes. Use the Capital Gains Tax Calculator to estimate a sale.
Keep records of every purchase and sale: date, number of shares, price and brokerage. Brokers' annual statements help, but the record-keeping is your responsibility.

Frequently asked questions

Can I buy shares with less than $500?

Usually not for your first purchase of a company: most brokers require at least $500, based on the ASX's marketable parcel concept. Once you hold that much, you can generally top up with smaller amounts. If you want to start with less, an ETF lets you buy a slice of many companies, though the same first-purchase rule applies at most brokers.

How long does it take to buy shares?

The order fills in seconds during trading hours if there's a seller at your price. Settlement, when the shares are registered to you, happens two business days later (T+2). Opening and funding a broker account first usually takes a day or two.

What is the difference between CHESS-sponsored and custodial?

With CHESS sponsorship, the shares are registered in your name under your own Holder Identification Number, and you can move them to another CHESS broker. With a custodial model, a custodian holds the shares for you and you rely on the provider's arrangements. Custodial platforms are often cheaper.

Do I need a tax file number to buy shares?

No, but without it companies must withhold 47% of the unfranked part of your dividends. You can claim that back at tax time, but giving your TFN to your broker or the share registry avoids it.

What time can I buy shares on the ASX?

Normal trading runs from about 10am to 4pm Sydney time on business days. You can queue orders from 7am in the pre-open, and there's a closing auction shortly after 4:10pm.

Should I buy individual shares or an ETF?

Individual shares give you control but concentrate your risk in a few companies. An ETF spreads your money across many companies in one purchase. Many beginners hold a broad ETF as their core and add individual shares around it.

Related calculators and guides

This article is for general information only and does not constitute financial, tax or legal advice. Individual circumstances vary. Consult a registered tax agent or licensed financial adviser before making decisions based on this information.