Welcome to our ASX review. We’re taking a little break from traditional broker reviews to provide some information on ASX. ASX is the Australian Securities Exchange. They allow traders to buy and sell commodities. bonds, stocks, shares and other financial products.
The ASX is one of the top-five leading financial exchanges in the world with a market capitalisation of around $1.5 trillion. One of ASX’s key features is their security, which rivals even the most stringent of regulations. We take a look at the exchange, answering the all-important question – is ASX safe?
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We shouldn’t really be happy with the ASX website. It’s jam-packed with complex information such as how to register your company on the ASX, the fees involved and the specific terms and conditions you’ll need to adhere to in considering a registration. But we love it. You see, the information provided is organised well and written in a tone that is easy to understand. Any business looking to register on the ASX should have no issue doing so. For traditional traders the website is not without merit. Yes, it’s aimed at businesses, but the market research information is comprehensive, allowing you to understand the nuances of specific trading markets easily.
It’s clear that the end-user has been at the forefront of the designer’s mind from the beginning of the design process. The blue and light grey colour-scheme, for example, adds to the uncluttered presentation of the site. There are also no clumsy flashy images or large chunks of information to process. The result is a website which loads quickly both on mobile and on desktop devices.
When it comes to interesting features, few sites can compare to ASX’s Sharemarket Games. There are two of these available – one for adults and one for school children. The aim of both games is to work in teams and invest a sum of virtual money. Those with the best-performing portfolios win prizes.
The chances are, that if you’re reading our ASX broker review in Australia you’ll already have the basics on how to trade on financial markets. But here’s a refresher, just in case. Do bear in mind that ASX are NOT brokers. They are a financial securities exchange that allows businesses to float on their market. If you’re looking for specific brokers please do check out our other reviews for detailed information.
Most brokers accept credit and debit cards from individual or business bank accounts, but not joint accounts. Another popular payment method is bank transfer, which is often used for larger financial deposits and the funding source used for paying profits. The reason many choose bank transfer as their preferred method is because of the added security usually associated with banking transactions.
There is also a clear digital paper trail following the path of any funds deposited or withdrawn to or from your preferred financial broker. In recent years it has also become more common to add funds to your trading account using e-wallets such as PayPal. The benefit of using an e-wallet over traditional methods such as bank transfer is their transaction speed. Bank transfers can take up to 3-5 business days to process, whereas e-wallet funds are usually credited instantly.
As ASX is not a broker, fees payable relate to floating a business on the ASX. Initial fees start from $75,388 with an annual fee of $26,376, rising to $339,018 and $61,729 respectively for $500m market capitalisation.
Customer service at ASX Australia is broken down into three different categories. These are ASX customer queries, customer feedback and feedback on the website. For a general enquiry you can contact ASX using an online dropdown menu of the most common topics. Alternatively, email and phone support is available. The ASX team can be contacted between 8:30am-6:00pm AEST excluding public holidays. It would have been nice to have 24/7 support like so many of ASX’s competitors. As such, we have slightly lowered our overall customer service ASX ranking in our ASX review. Still, it is nice to have the phone option available as an additional service choice.
General enquiries and customer feedback can be sent online using a specific form found under the ‘Contact Us’ tab at the bottom of the home screen. Here you’ll also find the full ASX complaints procedure policy which explains how they escalate and resolve customer complaints.
It all sounds suspiciously grand at ASX. So what’s the catch? Well, we can’t really find one – apart from the fact that it deals with businesses only. But then again, why would a trader want to float themselves on the stock market, after all?
ASX has all the hallmarks of a trusted financial company. They are regulated here in Australia by ASIC which regulates them on all trading revenues and clearing facilities. They’ve also got the backing of the Reserve Bank of Australia, too.
Internationally, the company is regulated in Singapore by the Monetary Authority of Singapore, in Hong Kong by the Securities and Futures Commission and in the US by both the Securities and Exchange Commission and the Commodity Futures Trading Commission. In the UK they hold licenses with the Financial Conduct Authority, in New Zealand with the Financial Markets Authority and in Switzerland, they are covered by the Financial Markets Supervisory Authority. It goes without saying that such extensive licensing adds to the credibility of the business.
All financial institutions work hard to ensure their reputation is as sterling as it can be. With ASX, this means asking tough questions of the brokers they allow on the ASX as well as reviewing their own services, too. We’ve already discussed the multiple benefits of ASX’s longevity and experience in the financial sector, but we’ve not yet mentioned the emphasis they place on their vetting process.
As part of their listing requirements, admissions must have at least 300 non-affiliated investors, a 20% free float and meet profit or asset test standards to prove they have the cash flow to cover any fluctuations in the market in a solvent way. It is this rigorous testing that has earned them a reputation as a business that can be trusted.
When it comes to trading bonds on the Australian Securities Exchange, it is possible to invest in three different types of bonds. This includes fixed rate bonds, floating rate bonds, and indexed bonds. It’s possible to invest in government bonds as well as corporate bonds.
As an online trader, you’ll find a range of contracts for difference (CFD) on the Australian Securities Exchange. There are equity, index, and commodity CFDs which can be traded. Bear in mind that trading in CFDs can be complex and carry a certain degree of risk.
Cryptocurrencies are currencies that are used online throughout the world. Unlike traditional currencies such as the Australian Dollar or the Euro, these currencies exist entirely online. They are stored in digital wallets which are usually provided by online cryptocurrency traders. The most well-known cryptocurrency product is Bitcoin, which was launched on the 3rd January 2009. Many other cryptocurrencies have followed, including Ethereum, Litecoin and NEO.
On the whole, cryptocurrencies have risen in popularity since their inception. The blossoming currencies caught the attention of financial institutions all over the world, each looking to trade in the new financial product. As such, many financial brokers trade cryptocurrencies using CFDs which aim to minimise the initial outlay of dealing with crypto-brokering. After taking a close look at our ASX review we could find no cryptocurrency trading on their site. While this is disappointing, it isn’t unexpected given the cautious nature of ASX.
Cryptocurrency trading has seen controversies in the past and ASX may be looking to observe the markets further before dipping their toe. This is a similar scenario to our findings in our Westpac review too. If cryptocurrency trading is an absolute must for you, we recommend you check out our IG Australia review instead.
As ASX Australia is a financial exchange, they don’t directly charge fees to traders. That task lies with the broker a trader chooses to process their transactions. Each broker chooses their own fee-levels which are usually broken down depending on the type of trade completed and whether any additional services are required.
It’s normal to be charged a fee for any individual transaction. In our Nabtrade review, for example, we found the broker charged a fee of $14.95 – $19.95 depending on the size of your brokered deal. Other companies such as CMC Markets allow fee-free trading on several AUS, US and UK markets. It pays to shop around. Do take a look at other reviews besides our ASX review to find the most suitable broker for you.
You may also be required to pay an overnight fee for transaction management. It is also common to be charged a small fee for account inactivity. The best way to avoid this is to log into your account if you’ve spent some time away.
Pesky scammers are everywhere, so how do you ensure that you are trading with a legitimate financial exchange? The first step is to visit our website so you know what’s-what. We’ll tell you whether a financial broker or exchange is dodgier than a nine-dollar-note. Is Selfwealth safe? – you ask, or can I trust the eToro review? Well, we do our homework the right way each time, which means that you can rest assured that all brokers and exchanges promoted by Wetten.com are legitimate.
ASX is no exception. Just take a look at our ASX Australia review if you don’t believe us. They, like many other legitimate businesses, follow strict guidelines which show their legitimacy and security.
Scrolling to the bottom of the ASC website gives us access to ASX’s guidelines and legislation. Besides numerous documents explaining their terms and conditions you’ll also be able to see any legislation that the company has changed recently. ASX Australia are overseen by ASIC – the Australian Securities and Investments Commission and RBA, the Reserve Bank of Australia. Both of these financial institutions ensure that ASX work within the legal regulations of Australia and serve their clients in a fair and safe way.
ASX claims that around 90% of on-market trading in Australia is executed via ASX. It’s clear, then, that they hold the market share of trading in the country. So what makes ASX so popular? For us, it’s the sheer amount of choice available to the average investor. Both cash and derivative markets can be traded on the website. Shares investors can choose from over 2,200 securities, which is on-par with many of their competitors. You can find out more about share trading by taking a read of our ANZ review or Plus 500 review which gives you all the information you’ll need to get started with shares investments.
ASX also works in collaboration with S&P Dow Jones to provide indices and related products. This allows investors to gain exposure to specific regions and markets in a controlled way. Together, ASX Australia and S&P Dow Jones have adopted 11 Global Industry Classification Standards to allow investors to compare the Australian market accurately against its peers.
Aside from shares and indices, investors can also trade on flexible and cost-effective government and corporate bonds. The most recent credit reports which detail the performance of these bonds are available on the ASX website for easy access.
When it comes to exchange traded funds – and alternative exchange traded products – there are a variety of asset classes that can be traded on the ASX. There are Australian equity ETFs as well as global equity ETFs. You can also access commodity, fixed income, and currency ETFs.
It is possible to speculate on a number of futures such as bond futures, commodities, energy, and the general level of the share market based on a specific index (such as the S&P/ASX 200). If you wish to hedge a risk, there is a wide selection of futures contracts on the ASX.
There are 3 types of shares traded on the ASX. You’ll find ordinary shares, preference shares, and partly-paid shares. You’ll be able to invest in blue chip shares from a number of established companies or try your hand at small-cap stocks.
Trust is of vital importance when it comes to financial brokerage. Any financial trader worth their salt will research to see if a broker holds licenses from Tier-1 and Tier-2 regulators – those that are held in highest esteem. Our license and security sections of our Wetten broker reviews is where you’ll find this information. Other areas to check include the Security and Jurisdiction sections to provide a balanced look at the broker in question.
Even the most experienced of online traders need to contact customer services from one time or another. Some broker customer services teams are available via phone. Others prefer contact via email or by using an online form. Some even have a combination of the three. Thankfully, our broker reviews are here to help. Our ASX online review has all the information you’ll need to contact ASX in your times of need.
Finding the right place to trade cryptocurrencies can be confusing. At Wetten.com we aim to demystify the process by reviewing each broker independently, including our ASX review. You can be sure that any information provided at Wetten.com is accurate, honest and to the point.
There are many alternative brokers for Australian residents. It’s best to take a look at our extensive broker comparisons and reviews where you’ll be able to read up on the movers and shakers within the Australian financial markets. But to start with, have a read of our ASX review!
We’re on the home stretch of our ASX review, so what have we learned? The financial securities trader is a business to be reckoned with, offering lots of support and recognition to those hoping to float on the Australian exchange. This, coupled with exceptional customer service and adherence to security guidelines has made the established business into the financial powerhouse it has become today. Sure, for individual traders it may not offer the possibility of trading direct, but what it does offer is knowledge in abundance. Their training and information pages are a treasure trove of resources for both new and experienced traders. This is a business page that should be bookmarked by anyone involved in the vast Australian markets.
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