As we discuss here, Dover’s strong conviction is that clients should perform their own share transactions. Advisers should never seek to complete these transactions on the client’s behalf.
Shares on the ASX must be bought or sold via an approved broker. Given that the adviser is recommending which shares to buy, the client only needs an ‘execution-only’ brokerage services.
The ASX provides a searchable list of execution-only brokers on its site here. As of February 2016, the list was as follows:
Given that the intention is to buy and hold relatively few shares, the cheapest of these options which is also convenient should suit most clients.
The financial services rating website Canstar allows users to compare various online brokers based on criteria such as the number of trades in a given period. This is one simple way for advisers to determine which online broker to use.
Another is to simply make use of the client’s existing or otherwise preferred bank. All of the major banks have online trading facilities attached to them, and this often makes for simplicity in terms of moving money in and out of the particular trading account. Most also allow the trading account balance to be displayed alongside other accounts on the client’s internet banking site. This also makes for ease of administration in terms of tax return preparation.