Settling (Paying for) your trades?
Prior to placing an order through your online trading account you must ensure that you have enough money in your account to cover the total cost of the transaction as soon as your buy order is placed. On the settlement day (T+3) your broker will debit the cost of the trade from your trading account. Over the settlement period funds are locked and cannot be withdrawn from your trading account for any purpose.
When do you receive the proceeds from selling your shares?
Your trading account will be credited with the proceeds from the sale on the 3rd business day after the trade.
Are there any software or data fee charges?
Some online brokers will charge a platform fee, generally platform fees are payable monthly in arrears, with the charge being deducted from your online trading account at the same time.
What Identification do you need in order to open an account?
Generally online brokers require that each person named on the account opening forms are required to provide two forms of identification when opening an account, this is usually a copy of your drivers licence and passport.
Do you need to maintain a minimum balance?
You do not have to maintain a minimum account balance, nor make an initial deposit into your trading account.
How do you transfer money into your account?
Once your account has been opened, you will receive details of your account number and also instructions as to how you are able to deposit funds. The most common methods of depositing funds are Bpay, Online bank transfer or Cheque.
How do you withdraw money from your account?
You can withdraw money from your online trading account by directly faxing a withdrawal request to your online broker.
Will you receive account statements?
As the holder of an online trading account you will receive daily, monthly and quarterly statements showing movements into and out of your account. Your statements will also show any interest earned and credited to your trading account. You can view the balance of your account along with your open positions at any time online.
Will my account balance earn interest?
Most brokers will pay you interest on the balance in your trading account at the market rate. Interest is calculated daily and generally credited to your account monthly or quarterly.
How long will it take for my trading account to be opened?
Once your broker receives your account application and identification generally your account will be opened within 24 hours.
Will you be told when your account has been opened?
Yes, your broker will send you a welcome email outlining your online trading platform log in details.
What is CHESS?
CHESS (Clearing House Electronic Subregister System) is the computerised share registry and settlement system owned and operated by the ASX. CHESS manages all of the share ownership records of ASX listed companies.
What is a HIN?
A HIN (Holder Identification Number) is the number used by CHESS to identify individual clients when they become sponsored by a particular broker. Each person is issued with a HIN when their account is opened. All of the shares you purchase will be attached to your HIN, this makes it easier to manage your share holdings and transfer them to another broker if required.
Can you have multiple HINs with a number of different brokers?
Yes, although you would not be able to sell holdings through the broker where you have an account if they are held under a HIN with a different broker.
What correspondence will you receive?
Every time you trade, you will receive a trade confirmation on the platform and from us. Each month you will also receive holding statements from CHESS, detailing any change to your holding of an individual stock during the previous month.
How do you sell your shares?
Before you can sell your share portfolio, you will need to transfer or convert your stocks to CHESS. To transfer shares from another sponsoring broker, you will need to complete a form to change your sponsoring broker. Once the transfer is complete, you will be able to view your holdings through your trading platform. You will then be able to sell your shares through your broker online. Any additional share purchases will automatically be registered with CHESS and will be available for immediate sale though your broker.
How do you transfer your holdings from another broker?
When you open an online trading account, it is possible to transfer your HIN from your new broker. This means that all holdings under your existing HIN will be transferred to your new broker (this process usually takes up to 48 hours). If there are any outstanding orders or unsettled trades with your existing broker, your HIN cannot be transferred until all outstanding orders have been settled. You will need to complete the Sponsoring Broker transfer form to transfer your HIN.
Can you transfer part of your holdings?
It is possible to transfer only some of your holdings by using the Sponsoring Broker transfer form and and listing the stocks and quantities you want transferred.
Can you sell Issuer Sponsored stock?
No, all stock must be converted to your chess holdings before you are able to sell it.
You can read more about share trading and how you can build a trading plan in our free Shares Guide.
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