Invest In Equities Australia – Investing in Equities Beginner’s Guide 2021

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Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

If you’re looking for a way to start putting your money to work, then equities investing presents an incredible opportunity. One of the biggest steps you can take on your journey towards financial freedom is starting to actively invest. Rather than your money sitting in a bank depreciating by a few percent each year, you can instead, earn money on top of your investment, far more efficient, I’m sure you’ll agree. Equity investing is one of the best ways you can build a high-yielding portfolio, and when you take into consideration the fact that you can also earn dividend payments from your investments, there’s even more reason to start investing in equities today. 

We understand analyzing the pros and cons of a new investment can be difficult and time-consuming, so to ensure our readers have the easiest possible time getting started we’ve included in-depth reviews on the best equities brokers, some different ways you can invest in equities, and even a comprehensive guide on exactly how you can make your first investment.

#1 Broker to Invest in Equities Australia – eToro

Mobile AppYes
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors

How to Invest in Equities Australia – Step by Step Guide 2021

If you haven’t got much time and are just looking for a quick guide on how to invest in equities, then we’ve got you covered! However, if you’d prefer a more detailed guide, complete with pictures, you can find that toward the bottom of the article. 

  • Step 1: Open an eToro account: The first thing you’ll need to do is register with a brokerage. We recommend eToro. Simply type “” into your browser, press “Join Now”, and fill in the required information.
  • Step 2: Verify your Identity: Now that you’ve signed up for eToro, it’s time to verify your account. This process only takes a couple of minutes. The documents you’ll need at hand are a photo ID (passport, driving license) and proof of address (utility bill, bank statement).
  • Step 3: Fund your Account: Once your account has been verified you need to fund it. Doing so is simple, just click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill).
  • Step 4: Invest in Equities: After you’ve funded your account, you’re ready to make your first investment! Just type the name of the asset you’d like to purchase into eToro’s search bar, press “Trade”, enter the amount you’d like to invest, and press “Open Trade”. You’ll be able to monitor your investment from the portfolio section of your account.

Where to Invest in Equities Australia – Choose a Broker

One of the most important prerequisites to investing is selecting a good brokerage, without one you’re likely to be subjected to steep fees and a subpar feature set. So, to provide our readers with a bit of assistance we’ve included full-length reviews on the top 3 equities trading platforms. 

1. eToro – All-In-All Best Broker to Invest in Equities Australia

If you’re looking for a 0-compromises brokerage, then eToro is most certainly worth considering. They’ve been operating for almost 15 years and in that time have amassed more than 20 million loyal customers. It’s near impossible for a platform to grow to this size without having a seriously impressive set of offerings. eToro has managed to include features relevant to investors of every skill level, and as such, they cater to the majority of the retail market. 

Security & Privacy

Without ample security it’s likely that a brokerage would end up being pilfered by hackers looking for an easy target, resulting in catastrophic losses for both investors and the company. As such, it makes sense that eToro has water-tight security, specifically designed to keep investors’ data and funds secure. One of the most important aspects of security for a modern-day investment platform is regulation, without it, brokerages would be allowed to operate unchecked, and the average user would be left with no recourse in the event of something going sour. eToro is regulated by ASIC (Australia’s leading authoritative body), along with various other bodies located all over the world. Protecting your data while it makes its way from your device back to a central server is another crucial part of any security system, eToro does this by implementing a piece of technology called SSL encryption, which obscures any data before it leaves the device. Additionally, eToro users have the option of enabling 2FA, a security measure that requires you to input a code sent to a mobile device before you can complete sensitive account actions. 


As we briefly mentioned, eToro aims to provide features that will be relevant to the majority of users, this means that they’ll be able to keep most investors’ content, benefiting both parties. One of the ways they’ve achieved this is by including charting tools, simple enough for a beginner to use and advanced enough to plot even the most complex trading strategy. Another feature that I’m sure both beginners and experienced investors will agree is an excellent time-saver, CopyPortfolios, offers a way for investors to purchase a stake in multiple assets at once, a great way of securing equity from a range of companies through the press of just one button. CopyTrading is eToro’s automated trading system, it allows you to mirror the trades of experienced users in real-time, resulting in a passive income stream. Although beginners would likely benefit more from this feature. I know very few traders that would turn their nose up at an opportunity to earn profit without much effort. And to top all this off, eToro offers commission-free trading, meaning you’ll get the most out of your investment. 


eToro Fees

Fee Type Fee Amount
Commision Fee 0%
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 (Monthly)



  • Regulated
  • SSL encryption
  • CopyTrading
  • CopyPortfolio
  • Commission-free
  • 2FA


  • Support for MetaTrader would be a nice touch
  • Could benefit from additional technical indicators

67% of retail investor accounts lose money when trading CFDs with this provider.

2. – Best CFD Broker to Invest in Equities Australia

Despite being the youngest platform on our list, is one of the most capable brokerages out there currently. They were founded in 2016 and have since grown to serve more than 1 million users. This fame wasn’t found overnight however, has put in the work and created a platform that is extremely easy to use, educational, and powerful, a winning combination in the eyes of investors. review

Security & Privacy

There’s a well-known saying that states “you can’t teach an old dog new tricks”, well, it seems the opposite is also true because the new dog on the block,, certainly has a few tricks tucked away up their sleeve. One of which is an impressive new technology called Transport Layer Security, designed to prevent data from being usable in the event of it being intercepted by an attacker. Transport Layer Security is a more recent variant of SSL encryption. Another way the data of’s users is kept safe is by adhering to standards set out by PCI Data Security, designed to ensure customer data is being handled correctly and further evidencing how seriously takes data protection. In addition to this, is also regulated by ASIC, meaning they comply with strict regulations and are regularly audited to ensure transparency. 


If you’re looking for an easy way to invest in equities, then has you covered. They’ve made sure to include tonnes of resources to get beginners up to speed with the basics of investing, as well as some more advanced topics. The bulk of these resources lies in the plethora of guides they offer investors, these guides follow a fairly standard structure, consisting of short lessons, followed by a quick that you can use to test your knowledge on a specific subject. If you’d like to take your education on the go with you, provides an app called Investmate that allows you to do just that! It’s very similar to the guides we previously mentioned, although it’s available on mobile so you can keep learning even while out of town. However, doesn’t just cater to the needs of beginners, they allow users to trade in a wide range of financial markets and invest using leverage, allowing you to multiply your earnings up to a factor of 30. Fees

Fee Type Amount
Commission 0%
Withdrawal Fee $0
Deposit Fee $0
Inactivity Fee $0



  • Transport Layer Security
  • PCI Data Standard Compliant
  • Educational resources
  • Regulated
  • Investmate


  • Limited to CFDs and regular stocks

 76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

3. AvaTrade – Invest in Equities Commission-Free Australia

Initially founded in 2006, AvaTrade is a very well-known equities broker and is currently engaged in a brand awareness campaign, so if you’ve recently seen an advert for them, now you know why! Since its launch, AvaTrade has managed to create a refined platform that, despite a somewhat dated-looking UI, is incredibly capable and offers investors every tool they might need to succeed. 

Security & Privacy

As the oldest platform on our list, it’s no surprise that AvaTrade has got some pretty tough security, after all, if they didn’t it’s likely they would’ve been left bankrupt by hackers long ago. One way AvaTrade prevents attackers from stealing customer data is by utilizing 256-bit SSL encryption, this ensures data is unusable should it fall into the wrong hands. Although all customer data is private and kept secure, AvaTrade uses a dedicated piece of technology to protect even more sensitive information (identity documents, banking information, etc). This tech is called McAfee Secure and is created by the antivirus company of the same name. And as a final preventive measure, AvaTrade is regularly audited and follows strict rules set out by ASIC.


Now we know that AvaTrade takes security seriously, you’re probably wondering about the types of features they offer investors. Well, AvaTrade certainly hasn’t skimped when it comes to equipping their platform. They’ve followed the steps of, ensuring that beginners have well-researched guides they can use to learn the basics of trading. On top of this, AvaTrade has created several trading platforms, each of which is designed for a specific purpose. AvaTradeGo is their mobile trading platform, designed to allow users to trade on the go while having access to the same resource they would on desktop. ZuluTrade is AvaTrade’s version of CopyTrading, it allows you to automatically match the trades of over 10,000 experienced users. On top of all this, AvaTrade has even created a dedicated options trading platform called AvaOptions. In addition to these powerful features, AvaTrade has also focused on ensuring their platform is highly accessible, this has been achieved by allowing users to choose from a professional trading account, an Islamic account, and a regular AvaTrade account. Providing users with options based on their needs is always a big plus in our book.

AvaTrade Fees

Fee Type Fee Amount 
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $50 after 3 months & $100 after 12 months



  • AvaTradeGo
  • AvaOptions
  • ZuluTrade
  • Accessibility
  • Video Guides
  • 256-bit SSL encryption
  • Regulated


  • UI getting dated
  • Not available to US residents

Your Capital is at Risk.

Invest in Equities Australia – Broker Price Comparison

Committing to a brokerage is no small task, you’ve got to carefully analyze the offerings of each platform and weigh them against your specific needs. However, to help make this decision a little bit easier, we created this table, comparing the fee structure of each Equities investment platform.

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity) 0% $0 $0 $0
AvaTrade  0% $0 $0 $50 after 3 months & $100 after 12 months


What are Equities? 

By investing in equities, you’re investing in a company by purchasing its shares from the stock exchange. This may sometimes be referred to as equity, for example, if you own 10% of a company’s shares, you own 10% equity in the company. This grants you fractional ownership of the company, which comes with several benefits. Because you own a portion of the company, you’re entitled to a share of its profits/assets. Typically, your share of profits will be paid out in the form of dividends, a quarterly or yearly payment that is akin to earning interest. Depending on your stocks conditions, the interest rate you receive will either be fixed or variable based on the company’s profit. 

Although investing in equities almost always involves purchasing a company’s stock, not all types of stock are the same. Because we understand how confusing this can be for new investors, we’ve included a rundown on the two most common types of stock for equity investing. 

Common Stock

As the name would imply, a common stock is what you’ll be investing in most of the time. You’ll earn your returns through dividends as usual. However, you have little control over your investment and are somewhat at the whim of the company you invested in. When invested in common stocks your dividend payments will be paid after bondholders and owners of preferred stocks, the same order applies when recuperating funds from the company in the event of liquidation.

Preferred Stock

Preferred stocks work in a very similar way to common stocks, but have a few key differences. Typically, when investing in preferred stocks, you’ll receive either no or extremely limited voting rights and your interest (dividend) rate will usually be fixed. However, your dividend payments will be sent out before that of common stockholders (although still after bondholders). Additionally, you also have a higher claim on the company’s assets if they go bankrupt.

Best Ways to Invest in Equities Australia

Before you start investing in equities, you should consider which way of doing so is best for you. You can either go the route of investing directly in stocks or by investing through a mutual fund, both methods have their pros and cons so it usually comes down to what way best suits your needs. 


Investing in equities via stocks is perfect for those willing to take on slightly greater exposure to risk. If you choose the right stocks to invest in, the returns can be huge, however, because you’re solely exposed to a singular asset, if that company has a bad year, you’re liable to enduring steep losses. That being said, if you’ve done your research and believe that the company will perform well, investing directly in stocks will yield the best returns. 

Mutual Funds

If you’d prefer a lower-risk investment opportunity, investing through a mutual fund could be beneficial for you. When investing in a mutual fund, you’ll have exposure to a wider range of assets, preventing large losses in the event of one company performing poorly. However, you should always consider the fund’s long-term performance as well as its expense ratio (amount of money a fund takes for managing investments), as both of these factors could have a drastic effect on your earnings. 

Are Equities a good investment? 

Equities tend to be regarded as a solid investment, they can yield massive returns, should you invest in the right company. But even if you aren’t able to choose the next big thing, smaller stable gains are still likely, helping you to outpace inflation.  

Massive Potential 

Investing in equities has the potential for massive profits, all it takes is a company having a good year for you to earn a life-changing amount of money. And although there are definitely risks associated with any type of investment, they can be greatly reduced by employing risk management strategies. 

Voting Rights

When you invest in a company, you become a part-owner. This usually gives you the right to vote on the future of the company (unless you have preferred stocks), meaning you have some degree of control over the future of the company you’re investing in. This is excellent for anyone looking for a long-term investment, as it provides greater control than you’d get with most other investment types. 

Investing in Equities Australia – What are the Risks

If there was an investment completely risk-free, I’m sure just about everyone would be chucking money into it like there’s no tomorrow. Unfortunately, this doesn’t exist in the real world and as such you must be aware of the risks before parting with your cash. 


Investments are unpredictable, if a company has a bad year or some sort of scandal, the chances are that the stock price will tank. Because of this, it’s imperative that you always make sure to thoroughly research the company you’re investing in and make sure they’re consistently growing. 


Although unpredictability is par for the course for any investment, when investing in equities you’re essentially investing in a company. This means that you could face catastrophic losses in the event of the company going into insolvency. That being said, a good deal of this risk can be alleviated by monitoring the news and performance of the company you’re invested in. 

How to Invest in Equities with eToro

Learning how to use a new platform can be both time-consuming and frustrating, so to ensure our readers have a successful time with their first investment we’ve created this comprehensive guide. 

Step 1: Open an account with eToro

The first thing you’ll need to do before investing is register with a reputable brokerage. It can be difficult to select a good broker, so to make it easier, we recommend eToro. Simply type “” into your browser, press “Join Now” and fill in the required details. 

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify your account

eToro is a regulated brokerage, this has several benefits including increased client security, however, it does also mean you’ll need to verify your account before you can invest. Luckily, this process only takes a couple of minutes and doesn’t require any special information. All you’ll need to provide is a photo ID (passport, driving license) and proof of address (bank statement, utility bill).

Step 3: Fund your account

Now that you’ve verified your account you’re almost ready to make your first investment! But before that, you’ll need to fund your eToro account. To do this simply click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. You’ll be able to see the funds appear in the portfolio section of your account. eToro currently supports deposits using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill).

Step 4: Invest in Equities!

Once your account has been funded, you’re ready to invest! Just type the name of the asset you’d like to purchase into eToro’s search bar, press “Trade”, enter the amount you’d like to invest, and press “Open Trade”. You’ll be able to view and monitor your investment from the portfolio section. 


To sum up, if you’re looking for a way to start making your money to earn money, then investing in equities is an excellent place to start. Although there is a slight learning curve, the same is true for every investment and when you consider the potential rewards, we’d say it’s well worth the effort. After all, it only takes one solid investment to help you hit new heights. However, as we mentioned, there are several risks involved with investing in equities and as such, you should always make sure to do your due diligence before investing. One way you can reduce your risk is by ensuring you’re trading with a reputable brokerage. If you’re yet to decide which broker is right for you, we recommend eToro because they offer users a great blend of features and ease of use, making it perfect for the majority.

Best Trading Platform to Invest in Equities Australia – eToro

Mobile AppYes
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors


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About Jay Leonard PRO INVESTOR

Jay is a UK based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. He has a great deal of hands on experience in the space and a current focus on institutional adoption.