What is Share Trading?

Share trading is the service of buying and selling shares, and other securities for retail or institutional clients, through a stock exchange or over the counter, in return for a fee or commission.

How Do You Trade Shares?

Shares are bought and sold on a global network of exchanges. Most Australian shares, for example, are traded on the ASX 200.

These exchanges have strict rules for the companies that can list on them, and set hours during which shares can be bought and sold.

What Markets Are Available To Trade with IG?

You can trade over 13,000 shares from the following stock indices in local denominations:

  • Australia: ASX 200, ASX 300 and many other small cap Australian stocks
  • US: S&P 500, DOW 30, NASDAQ 100 and many other small cap US stocks
  • UK: FTSE 100, FTSE 250 and many other small cap UK stocks
  • Germany: DAX, HDAX, MDAX
  • Ireland: ISEQ

Who Trades Shares?

Individual share traders tend to fall into one of two broad categories:

  • Investors, who focus on long-term value by building a portfolio to deliver returns over several months or years
  • Traders, who try to capitalise on short-term movements, often by making many trades in a single day

What are The Benefits of Share Trading?

The three main benefits are:

1. Returns
Shares can offer healthy profits. If you buy when prices are low and sell when they are high, you can get a good return. However, if the price you sell at is lower than the price at which you buy the shares, you may make a loss. All trading involves risk and you may get back less than you originally put in.

2. Dividends
When you trade shares, you don’t always have to rely on them increasing in price for you to earn a profit. You could receive a dividend, or a portion of the profits made by a company you have shares in.

3. Global shares
There are thousands of shares to choose from around the world, so the options available to share traders are huge. With IG, for instance, you can trade international shares in local denominations, and our fee to convert currency is at a flat rate of just 0.3%.

Why Trade With IG?

We are confident that we have some of the lowest rates in Australia.

There is no minimum balance to open an account with IG, takes less than five minutes, and there is no obligation to fund or trade.