Open That Damn Brokerage Account Already!
Here are 7 questions you should ask
Finally.
I purchased my first Australian ETF—woohoo!
This was an exciting moment for me, especially since I’d been procrastinating about entering the market for quite some time. Reflecting on this delayed, I realised:
I was trying to time the market
I couldn’t decide which brokerage account to open
While timing the market was a matter of building my confidence, the brokerage decision was pure decision fatigue—I just couldn’t settle on one.
Finding a brokerage that feels like a good fit is surprisingly challenging, so I thought I’d share my approach and hopefully make it easier for you to decide on yours.
First, let me give you some background in Canada.
At the time, I’d just moved to Canada and there weren’t many choices besides the major banks. Most resources I found, whether articles or YouTube videos, focused on US brokerage accounts.
Robo-advisors were all the rage, with platforms gamifying the investment experience, such as Robinhood. But options were limited in Canada.
After months of research, I finally settled on a brokerage account. Looking back though, I might have chosen differently if I’d known more. Although switching isn’t an option now that I’m no longer a Canadian resident.
Fast forward to 6 months ago…
When I moved back to Australia and wanted to start investing again. I rushed to open an account with a highly recommended broker where I can easily transfer my portfolio from Canada, but it ended up being a frustrating experience.
Not only the whole registration process was time consuming and required numerous verifications, their customer service was slow, with no live chat option, which made getting answers a hassle compared to the brokerage I used in Canada.
Eventually, I closed the account, withdrew my money, and went back to researching.
I don’t blame anyone. I hadn’t done my research properly and wasn’t clear on what I wanted.
Lesson learned: If you don’t know what you want, it’s hard to find it.
So, if you’re putting off investing because you can’t decide on a brokerage account, start by asking yourself what you want to achieve. The account you choose should help you meet that goal.
Here are 7 questions I asked myself before opening my current account (Note: I won’t be recommending a specific broker here, but I’ll share the ones I chose and why):
Which markets do you want to trade in? In Australia, most brokerages offer access to Australian and US stocks, but I wanted to check if they support other international markets too.
Do they accept fractional share?
Can I add a Dividend Reinvestment Plan (DRIP)?
How quick can I transfer fund? In Canada, the brokerage I used took days to convert CAD to USD with no interest accrued in the meantime—very frustrating.
How secure is this broker? In Australia, we have CHESS sponsorship (Clearing House Electronic Subregister System). CHESS sponsorship means the Australian Securities Exchange (ASX) keeps a record of shares you directly own, rather than a broker holding them on your behalf, giving you peace of mind if your broker goes under.
How accessible is customer service? My first Australian broker required over a week of back-and-forth emails without live chat—definitely a dealbreaker for me.
What are the fees? This is particularly important if you trade frequently. Many brokers offer low fees on ETFs, but individual stock trading may cost more.
By clarifying your own criteria, it’s much easier to see which brokerage might suit you best.
Now that you know what I looked for in a broker, let’s talk about the platforms I use and why they made the cut.
Which Brokerages I Use and Why
In Canada, I used Questrade. But if I could go back, I’d probably switch to Wealthsimple.
At the time, Wealthsimple was mainly a robo-advisor with fewer options. Plus, the exchange rate from CAD to USD was high, and they didn’t support fractional shares.
However, 3 years on, Wealthsimple has really stepped up. You can now buy fractional shares, and they have quick transfer times, a banking arm with competitive interest rates, and excellent customer service. Their newsletters are also fantastic—I highly recommend signing up if you want finance tips with a side of humour!
In Australia, I use Moomoo, and I’m pretty happy with it.
I love the frequent market updates, easy to navigate interface and quick setup for a buy and sell price. It supports fractional shares and allows DRIP.
As a cherry on top, they offer a 6.8% interest rate for any uninvested fund for up to 180 days! I don’t know how long this offer will last so if you are in Australia, check this out.
I initially deposited $1,000 but didn’t buy immediately, waiting for the right entry point. In the meantime, the interest accumulated, which got me across the line when buying at a slightly higher price than planned, instead of transferring extra money over again.
Moomoo is also CHESS sponsored.
The only down side of Moomoo (Australia) is that, I can only trade in the Australian, US and Hong Kong markets.
Meaning I can’t transfer my Canadian stock to my Moomoo account here.
Moomoo has expanded and is now available in the US, Canada, Singapore, Malaysia, Japan and Australia.
Remember, you are not married to your brokerage account. Changing brokers can be as simple as switching mobile providers, so don’t spend too long (like I did!) trying to find the “perfect” one and putting of your investment journey.
Set your criteria, and if a brokerage ticks most of the boxes, go for it and see how it works for you.
I share my journey as a late starter on the path to financial freedom, offering personal insights and practical steps I've learned along the way. Disclaimer: These are my views, not financial advice. Always do your own research before making any financial decisions.
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Sarina, why would you need fractional shares? If you can't afford to buy one share, just don't buy it. Buy something else.
Do you have any insight into the Australian stock market?