What processes occur when setting up a trading account and trading?

Signing Up with a Broker

What Happens during the application?

When you sign up with a broker, either through an online platform or a paper application, you’ll need to provide specific personal information to establish your trading account.

 

At the same time, most Australian brokers will work with a bank, to set up a bank account for you, that will allow the broker to credit and debit that account to facilitate the trades.

What You Receive:

Once your account is set up, the broker will give you access to their trading platform where you can buy and sell shares.

  • The first time you login to the software walkthrough
    What happens the first time you login to the Trade for Good app software.

    It will cover how to:

    • welcome email
    • setting password and pin
    • accepting agreements
    • and the first login

    Read More

How Long Does It Take?

  • Trading account 1-2  business days
  • A bank account 1-3 business days, depending on who is setting it up and the complexity

You will receive a Holder Identification Number (HIN) from the Australian Stock Exchange. This number is unique to you and similar to a tax file number.

Buying a Share

What Happens to Your Money?

When you buy a share, the broker deducts the cost of the shares plus a brokerage fee from your linked bank account. This money is transferred to the seller of the shares through the stock exchange.
The Australian Stock Exchange works on a T+2  timeframe for setting a trade.

T+2 = The trade day + 2 business days.

So if you did a buy trade on Monday, the trade would settle on Thursday. Then on Thursday morning, the broker will debit your nominated bank account for the buy trade.

What You Receive from the Broker?

You’ll receive a contract note, which is the confirmation of your trade. It includes:

  • The number of shares purchased
  • The price per share
  • The total cost, including brokerage fees
  • The trade date and settlement date

What Happens Behind the Scenes?

The broker handles the transaction on the exchange, and the shares are registered in your name with the share registry.

What do you receive from the Share Registry

Once you own shares, the share registry (a third party that manages shareholder records for the company) will contact you with the following:

Shareholder ID (Holder Identification Number – HIN or SRN): This proves your ownership of the shares.

Notifications about Annual General Meetings (AGMs): You’ll be invited to participate in the company’s AGMs, where major decisions are made.

Dividend Information: If the company pays dividends, you’ll receive details about:

  • How much you’ll be paid
  • When the payment will be made
  • The option to reinvest dividends through a Dividend Reinvestment Plan (DRP), if available.

Selling a Share

What Happens to Your Shares?

When you sell your shares, the broker finds a buyer and handles the transaction on the stock exchange. The shares you own are transferred to the buyer.

What You Receive from the Broker:

After selling, you’ll get another contract note, confirming:

  • The number of shares sold
  • The price per share
  • The total sale amount, minus brokerage fees
  • The trade date and settlement date

When Do You Get Paid?

The money from the sale is transferred to your linked bank account on the settlement date, which is typically T+2 (trade date plus two business days).

The Bottom Line – Key Documents and Information

From the Broker

  • Contract notes for each trade
  • Access to your trading platform to track your portfolio


From the Share Registry

  • Holder Identification Number (HIN) or Security Reference Number (SRN)
  • Notifications about AGMs
  • Dividend details (payments and reinvestment options)

The Bottom Line

Trading through Trade for Good is designed to be transparent, secure, and efficient. Our platform provides clear insights into your transactions, ensures your data and funds are protected, and automates key processes like trade execution and settlement.

This streamlined approach allows you to focus on managing your investments with confidence.

What you learn here has been used in our Trade for Good software.
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