Australian Securities Exchange

The Australian Securities Exchange (ASX) is the main stock exchange in Australia and one of the most established in the Asia-Pacific region. It plays an important role in the Australian economy and has over 2,200 listed companies across a range of industries, making ASX brokers popular with investors looking to trade stocks, options, and other financial instruments.

In this tutorial, we provide an overview of the Australian Stock Exchange, explain how to compare the top online brokers that offer access to the ASX, and list some of the biggest players. Our experts have also reviewed and ranked the best Australian Securities Exchange brokers for UK traders:

Best Australian Stock Exchange Brokers

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    AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for trading, alongside a comprehensive education center and multilingual customer support.

  2. XTB

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    Founded in 2002 in Poland, XTB now serves more than 935,000 clients. The forex and CFD broker combines a heavily regulated trading environment with an extensive selection of 5,600+ assets and a commitment to trader satisfaction, featuring an intuitive in-house platform with superb tools to support aspiring traders.

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    Established in 1989, CMC Markets is a respected broker listed on the London Stock Exchange and authorized by several tier-one regulators, including the FCA, ASIC and CIRO. More than 1 million traders from around the world have signed up with the multi-award winning brokerage.

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    Eightcap is an award-winning, FCA-regulated broker offering industry-low trading fees. They are also the highest-rated brand by TradingView’s 50 million-strong users, who can trade directly on the platform. UK traders can sign up for a live account with an accessible £100 minimum deposit.

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    FXCC is an established broker that’s been offering low-cost online trading since 2010. Registered in Nevis and regulated by the CySEC, it stands out for its ECN trading conditions, no minimum deposit and smooth account opening that takes less than 5 minutes.

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    Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for traders at all levels.

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    IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

  8. XM

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    XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.

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    DNA Markets is a forex and CFD broker established in 2020. The broker operates two entities in Australia and the offshore jurisdiction, St Vincent and the Grenadines. Traders can access 250+ markets, with a Standard account for beginners and a Raw account for experienced traders. The reliable MetaTrader 4 and MetaTrader 5 platforms are available, alongside Signal Start.

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    Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

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    eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail CFD accounts lose money.

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    RoboForex is an online broker, established in 2009 and registered with the IFSC in Belize. Traders can choose from five accounts (Prime, ECN, R StocksTrader, ProCent, Pro) catering to different needs with trades from 0.01 lots and spreads from 0 pips. RoboForex has also enhanced its offering over the years, adding CFD instruments and launching its stock trading platform, plus the CopyFX system.

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    InstaForex is a forex and CFD broker founded in 2010. The broker offers diverse market coverage to millions of clients, spanning traditional assets like currencies and shares, as well as other interesting opportunities such as IPOs.

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    OANDA is an award-winning global broker, established in 1996. The hugely respected brand offers competitive trading accounts and serves clients from 196 countries. It remains a popular option with both beginners and experienced traders thanks to its user-friendly and sophisticated web platform, no minimum deposit and premium currency products and services. The company is also overseen by reputable regulators, including the FCA, ASIC and CIRO.

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    LQDFX is a straight-through processing (STP) broker based in the Marshall Islands. The offshore trading firm offers competitive spreads from 0.0 pips, free deposits, 24/5 support and access to the hugely popular MetaTrader 4 platform. LQDFX also runs a competitive bonus program for short-term traders.

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    Trade Nation is a top FX and CFD broker regulated in multiple jurisdictions including the UK and Australia. The firm offers low-cost fixed and variable spreads on 1000+ assets with robust trading platforms and training materials. The Signal Centre can also be used for trade ideas.

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    Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

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    BlackBull is a New Zealand-based CFD broker with trading opportunities on forex, stocks, indices, commodities and cryptos. The broker supports the MetaTrader 4 and 5 platforms as well as TradingView, cTrader and a proprietary mobile app. Clients can trade with high leverage and tight spreads from 0 pips on the broker's ECN accounts.

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    Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.

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    Founded in 2006, FxPro is an established forex, CFD and spread betting broker offering 2100+ assets to over 2 million clients worldwide. The broker is regulated in 4 jurisdictions and offers reliable 24/5 customer support, earning it a high trust and safety score. FxPro has also picked up more than 100 industry accolades for its competitive trading conditions, including fast execution and deep liquidity.

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    Established in 2008 and headquartered in Israel, Plus500 is a prominent brokerage that boasts over 25 million registered traders in over 50 countries. Specializing in CFD trading, the company offers an intuitive, proprietary platform and mobile app. It maintains competitive spreads and does not charge commissions or deposit or withdrawal fees. Plus500 also continues to shine as one of the most trusted brokers with licenses from reputable regulators, including the FCA, ASIC and CySEC.

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    Fusion Markets is an online broker established in 2017 and regulated by the ASIC, VFSC and FSA. It is best known for its low-cost forex and CFD trading, although its multiple account types and copy trading solutions cater to a range of traders. New clients can sign up and start trading in 3 easy steps.

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    Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

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    GO Markets is an established forex and CFD broker with multiple industry awards and accolades. The ECN/STP broker is popular with budding traders, offering competitive accounts in multiple base currencies and a range of flexible payment methods. With top-tier regulation from CySEC and ASIC, GO Markets is a trusted broker.

  25. Axi

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    Axi is a global forex and CFD trading firm, founded in 2007 in Sydney, Australia. Highly leveraged trading opportunities plus a $0 minimum deposit make it a popular choice among 60,000+ traders worldwide. Axi also stands out for its resources, including copy trading and Autochartist.

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    EagleFX is a forex and CFD broker, established in 2019. The broker uses STP execution on the MT4 platform, offering tight spreads and low commissions. With leverage up to 1:500 and no restrictions on hedging or scalping, EagleFX is an attractive option for short-term traders.

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    PrimeXBT is a multi-asset platform offering highly leveraged trading in forex, indices, commodities and cryptocurrencies. The company launched in 2018 and now has over 1 million users from more than 150 countries. With no minimum deposit, copy trading features and low commissions, the broker remains a popular option among crypto trading novices.

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    FXTrading.com is global broker offering highly leveraged CFDs on 10,000+ assets, including forex, stocks, indices, commodities and cryptocurrencies. Competitive prices with raw spreads and low to zero commissions are available. Traders can use the popular MetaTrader 4 platform and will have access to a suite of additional analytical tools and other resources. The multi-regulated brokerage is authorized by the ASIC and VFSC.

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    Founded in 2010, ThinkMarkets is a reputable CFD and forex broker with regulation from several top-tier bodies including the FCA and ASIC. The broker provides services to over 450,000 accounts from 11 global offices. Traders can use a bespoke platform, MT4 or MT5 to access a wide variety of assets including 3500+ stocks and ETFs, 46 forex pairs and over 20 cryptocurrencies.

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    M4Markets is an award-winning broker regulated by the CySEC, FSA and DFSA. Although relatively new, the broker continues to improve its offering with a range of innovative tools, platforms and accounts. Beginners can start with just $5, whilst experienced investors can access leverage up to 1:5000.

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    Trade.com is a trustworthy online broker with a global presence. The broker offers 2,100+ CFDs in major markets, as well as futures, options and more. The broker offers best-in-class platforms and superior analysis tools for experienced traders. The broker is also regulated by top-tier authorities including the FCA and CySEC.

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    Grand Capital is a MetaTrader broker with welcome bonuses, trading competitions and an intuitive copy trading service. Several account types and 400+ assets provide trading opportunities for various types of investors and strategies. New users can also open an account and start trading in a matter of minutes.

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    IronFX is a multi-regulated forex and CFD broker founded in 2010. This award-winning firm offers 500+ markets to over 1.5 million clients across 180 countries. Traders can access various account types with competitive pricing on the MT4 platform, as well as 24/5 customer support in 30 languages.

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    Ingot Brokers is a multi-regulated brokerage established in 2006. The broker offers CFD trading opportunities on 1000+ instruments including forex, stocks, indices, commodities and cryptocurrencies. The broker supports the MetaTrader 4 and MetaTrader 5 platforms and offers both raw spreads and commission-free account options.

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    Scope Markets offers trading and investing in multiple spot and CFD instruments. The group of brokers is regulated in several locations, including Belize, Kenya and South Africa. Users get competitive trading conditions, a range of payment methods, strong support and can get started in a few straightforward steps.

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    Dukascopy is an online broker operated by a Swiss-regulated banking group. It offers a good selection of 500+ markets, with forex, stocks, gold, ETFs, indices, bonds and cryptocurrencies available. It also offers flexible trading opportunities through the choice of CFDs or binary options. Traders will use MetaTrader 4 or a proprietary platform that is well-suited to automated trading.

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    FinPros is an offshore broker that provides CFD trading on 400+ instruments with high leverage up to 1:500. This is a reliable bet for traders seeking offshore options, with strong security measures, negative balance protection and segregated client funds. The extra features including trading tools and commission-free stocks make this a good choice for beginners, and experienced traders will appreciate tight spreads.

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    AZAforex is a multi-asset broker founded in 2016. The brand offers a sophisticated proprietary platform, ECN trading and 40+ deposit methods. The brokerage has 120,000+ registered customers with copy trading and a VPS.

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    RockGlobal is a New Zealand based and regulated CFD broker. They offer competitive spreads from 0.1 pips and a large range of trading assets, trading platforms and educational services, with up to 1:500 leverage. Operating in a Tier 1 regulated environment, RockGlobal offers peace of mind and excellent customer support.

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    FXTM is a top-rated forex and CFD broker established in 2011 and operating across 4 continents. The company is secure and regulated by leading authorities, including the FCA and CySEC. Offering 1000+ trading markets and three account types, they cater to all levels of trader.

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    ForexChief is a foreign exchange and CFD broker, established in 2014. The company is based offshore and registered with the VFSC and FMA. Users can choose between a wide selection of accounts and base currencies, making ForexChief accessible to global traders. The brand also stands out for its no deposit bonus and fee rebates for high-volume traders.

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    GoFX is an unregulated CFD and forex broker that covers instruments from currency, stock, index, commodity and crypto markets. Traders can sign up to a variety of account types with deposits as low as $1 and will trade using the popular MetaTrader 4 platform. Exceptionally high leverage up to 1:3000 is offered on the standard account, while traders with the low-spread account can access leverage up to 1:1000.

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    SimpleFX is an online broker specializing in CFD and cryptocurrency trading, with multi-currency accounts, STP execution, low pricing and no minimum deposit. Bringing innovation and gaining recognition at numerous industry events since 2014, SimpleFX now caters to retail traders from over 190 countries, boasting a client base exceeding 200,000 active users.

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    Errante is a Cyprus-based and regulated forex and CFD broker with leveraged trading on multiple assets, tiered accounts including a zero-spread option, and copy trading support. The broker offers leveraged trading up to 1:30 under its CySEC-regulated branch and 1:500 from an offshore branch, and supports the MetaTrader 4 and MetaTrader 5 platforms. Errante's asset list is relatively limited but it does offer fast execution and low latency, and it is a trustworthy brand.

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    ActivTrades is a UK-headquartered CFD and forex broker established in 2001. The brokerage is heavily regulated with licenses from the FCA, SCB, CSSF, BACEN & CVM and CMVM. Over 1000 CFDs are available spanning 7 asset classes. Over 93.60% of orders are executed at the requested price. ActivTraders also offers a selection of leading trading platforms, including MT4, MT5, TradingView and ActivTrader platforms.

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    Established in 2005 in Australia, FP Markets is an ASIC- and CySEC-regulated broker boasting an extensive suite of tradable assets. Its Standard and Raw accounts cater to traders at every level, while it packs a punch in the tooling department, from the MetaTrader suite and intuitive TradingView to actionable trading ideas from Trading Central and AutoChartist.

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    Anzo Capital is an offshore broker that offers leveraged CFDs on 100+ instruments including forex, stocks, indices and metals. The MetaTrader 4 and MetaTrader 5 platforms are supported, and traders can choose between an STP account with spreads starting from 1.4 pips and zero commission, or an ECN account with a $4 round-turn commission and spreads from zero. A decent range of payment methods are accepted, including crypto deposits.

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    HYCM is an online broker with authorization from four international bodies including the FCA and CySEC. The broker offers short-term CFD trading on forex, shares, commodities, indices, ETFs and Bitcoin, and supports the MT4 and MT5 platforms, as well as Trading Central analysis.

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    Global Prime is a multi-regulated trading broker offering 150+ markets. Traders can get started with a $200 minimum deposit and trade with leverage up to 1:100. The firm also has a high trust score and a good reputation with a license from the ASIC.

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    Fortrade is a multi-asset, multi-regulated broker with branches regulated by the FCA, CySEC and ASIC among others. The brand offers trading opportunities on a wide range of instruments including stocks, bonds, commodities, forex, indices, cryptocurrencies and ETFs, with competitive fees and support for MetaTrader 4 and a proprietary platform.

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    FXOpen is a multi-asset broker with regulation from several trustworthy bodies including the UK's FCA. The broker offers CFD trading on forex, stocks, commodities, indices, cryptocurrencies and ETFs via the MetaTrader 4 & 5 and TradingView platforms.

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    Admirals is an FCA- and ASIC-regulated broker with an excellent range of leveraged instruments, including forex, stocks, indices, ETFs, commodities, cryptos and more. The broker supports the MetaTrader 4, MetaTrader 5 and TradingCentral platforms. With both spread betting and CFDs available and thousands of instruments, this broker provides more flexibility than most rivals.

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    TMGM is an ASIC-regulated forex and CFD broker with a vast range of tradeable assets covering forex, stock, index, crypto and commodity markets. The account types on offer provide a flexible choice between no commission or zero spreads, with competitive pricing all-round.

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    Infinox is a UK-based and FCA-regulated broker that offers diverse trading products thanks to its STP and ECN account types and support for MetaTrader 4, MetaTrader 5 and a proprietary platform. Clients can also benefit from a free VPS that can support automated strategies and a social trading platform, catering to both beginner and seasoned traders.

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    Baxia Markets is an offshore CFD broker that offers trading on forex, commodities and indices with tight spreads on a straight-through processing model with ultra-low latency. Trade on MetaTrader 4 or MetaTrader 5 with leverage up to 1:500 and no restrictions to scalping or hedging strategies. Users also benefit from third-party copy trading services.

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    Established in 2013, SuperForex is an offshore CFD and forex broker offering highly leveraged trades on 400+ instruments via the popular MetaTrader 4 platform. The broker has gained clients in over 150 countries and is regulated by the Belize IFSC. With a range of STP/ECN account types, including swap-free, micro and zero spread, this broker continues to suit traders with different styles and setups. SuperForex also offers a range of welcome bonuses and trading contests.

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    Amega is an offshore STP broker offering CFD trading on forex, stocks, indices and commodities with very high leverage up to 1:1000 and a zero-commission pricing structure. Traders access markets through the MT5 platform and can test the broker's services through a demo account.

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    FXCentrum is an offshore broker that offers highly leveraged, commission-free trading on diverse instruments with tight spreads. Traders can access forex, equity and commodities markets via MetaTrader 5 or the proprietary FXC platform and use the award-winning ZuluTrade platform for copy trading.

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    Capital.com offer CFDs on a range of markets with competitive spreads and zero commissions. The broker also offers the Investmate app, negative balance protection and leveraged trading.

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    Trading 212 is a European and UK-regulated CFD broker that also offers stock investing and ISAs. It’s best known for its commission-free trading model and beginner-friendly app, which has helped it attract 2.5 million users and £3.5 billion in client assets.

Choosing ASX Brokers

When comparing brokers that offer trading on the Australian Stock Exchange, there are several factors to consider:

  • Products: A range of vehicles can be used to trade the ASX beyond just stocks, including options, futures, and ETFs. Other popular products offered by ASX brokers include CFDs (a derivative that allows the contract buyer to make a leveraged bet), spread betting (works in a similar way to CFDs and is popular with UK traders as profits are tax-exempt), plus binary options (a simple prediction on whether an asset’s price will rise or fall in a given timeframe with a pre-defined profit if your forecast is correct).
  • Fees: Brokers have different fee structures for trading on the ASX. Some online brokers may advertise as commission-free but will earn money from clients’ trades in the spread or some other way, such as deposit and withdrawal fees and account charges. XM, for instance, provides commission-free trading on the AUS200Cash index with a spread of 2 points.
  • Platforms: Some Australian Securities Exchange brokers offer their own platforms, while others use third-party software such as MetaTrader 4. Ultimately, traders should look for a platform that is user-friendly, reliable, and has the features they need, such as live graphs and real-time data, multiple order types, and copy trading. Also check if the platform is available as a mobile investing app.
  • Regulation: The ASX is regulated by the Australian Securities and Investments Commission (ASIC), which has different rules and requirements than other regulatory bodies. Traders using ASX brokers from outside Australia, i.e. those based in the UK, should look for oversight from the Financial Conduct Authority (FCA). This will give retail investors various protections, including access to compensation should the brokerage go bankrupt.
  • Time zone: The ASX is based in Australia, so its trading hours are different from other major exchanges around the world, such as the LSE. The Australian Stock Exchange opens at 10am local time (11pm GMT) and closes at 4pm local time (5am GMT). Fortunately, UK brokers that provide access to ASX assets may set their own hours.

Why Trade On The Australian Stock Exchange?

Trading on the ASX offers a range of benefits for investors, including exposure to a diverse range of industries, such as mining, finance, and healthcare. The ASX is also known for its high level of transparency and corporate governance, with listed companies required to comply with the Australian Securities Exchange Corporate Governance Principles and Recommendations (2019).

The ASX offers a variety of tools and resources to support traders, including an entity search function to help investors find specific firms and information on the latest news and trends. The exchange also places a strong emphasis on investor education, providing access to a wide range of resources to help traders make informed investment decisions.

Moreover, the Australian Securities Exchange has a reputation for offering stability and high liquidity to traders. The Australian economy has consistently demonstrated steady growth and a relatively low unemployment rate, so many traders have confidence in stock prices rising again if they ever fall. High volatility also means there is often high trading volume and tight spreads for many of its listed securities.

Strategies For Trading At ASX Brokers

  • Buy and Hold: The simplest long-term trading strategy involves buying a stock or an ETF and holding onto it for an extended period. Investors should look for an asset that presents good value and is likely to display long-term growth; they should also pay attention to dividend yields. As the investor takes a long-term view, they are not as concerned with short-term volatility and can ride out market dips. This can work well when trading on the Australian Stock Exchange as it is known for its stability.
  • Technical Analysis: Short-term trading strategies usually involve analysing charts and using technical indicators to predict stock price movements over a short timeframe. Traders who use this approach rely on chart patterns, such as trend lines, moving averages, and support and resistance levels, to identify opportunities. They also use technical indicators like the Relative Strength Index (RSI) to confirm the strength of a trend.
  • Contrarian Trading: When everyone else is selling, contrarian traders will buy and when everyone else is buying, contrarian traders will sell. The idea behind this strategy is that the market tends to overreact to news or events, causing the stock to move in one direction too quickly. Traders using this strategy believe that the market will eventually correct itself and the stock will move in the opposite direction, allowing them to profit.

What Is The Australian Stock Exchange?

The Australian Securities Exchange (ASX) is a securities exchange located in Sydney, Australia. The role of the ASX is to serve as a marketplace where investors can buy and sell shares of publicly traded companies. The ASX is one of the largest exchanges in the Asia-Pacific region, with a market capitalisation of over AUD 2 trillion.

The exchange ensures that all trades are executed fairly and in compliance with ASIC regulations. It also provides a range of services to market participants, including clearing and settlement services, asset data, and educational resources.

Like most exchanges, the ASX is also useful for gauging the health of its home country’s economy – in this case, Australia. This is because it is comprised of the top 2,200 publicly-traded firms, many of which are based in Australia, though the ASX also lists some large multinational companies like BHP Group and Rio Tinto, which are headquartered in other countries. Smaller overseas firms may even list on the ASX as a way of raising capital.

For UK traders, the ASX is an attractive exchange, as it offers a range of securities on many markets, including stocks, options, exchange-traded funds (ETFs), futures, and bonds. Investors can make a profit from accurately predicting the performance of the companies listed on the exchange or by speculating on the respective stock indices.

History

Early History

  • 1861: The first stock exchange in Australia is established in Melbourne.
  • 1871: The Sydney Stock Exchange is founded, becoming the second exchange in Australia.
  • 1980s: The Australian government begins to push for the merging of regional stock exchanges into a single entity.
  • 1987: The ASX officially comes into existence, following the merger of the six independent state-based stock exchanges.
  • 1997: The ASX becomes a publicly listed company, with shares trading on its own exchange.

Recent History

  • 2012: The ASX launch the ASX Centre Point dark pool, which provides an alternative trading venue for professional investors looking to trade large blocks of shares anonymously.
  • 2016: The ASX announces plans to replace its existing clearing and settlement system (known as CHESS) with a blockchain-based system. The new system, called CHESS replacement, is expected to improve the speed and efficiency of the settlement process and was meant to go live in 2020.
  • 2019: The ASX DataSphere is launched. It is designed to provide a range of real-time and historical data.
  • 2020: A new sustainability index, the S&P/ASX All Technology Index, is launched. It lists firms that are focused on environmental, social, and governance (ESG) issues, as well as those involved in technology and innovation.
  • 2021: The ASX announces plans to partner with Digital Asset, a blockchain technology company, to develop and test the CHESS replacement system.
  • 2022: After an already delayed launch, the blockchain replacement of CHESS is scrapped after an Accenture review reveals numerous problems.

Key Dates

  • 1987: The Black Monday stock crash affects the ASX, with the All Ordinaries index dropping by 25% in a single day.
  • 1998: The introduction of the ASX Trade24 platform, which enables after-hours trading of ASX 24 derivatives products.
  • 2010: Chi-X Australia, the first competitor to the ASX, is launched in the Australian equities market.
  • 2012: The merger between the ASX and the Singapore Exchange (SGX) is blocked by the Australian Treasurer due to concerns over national sovereignty.
  • 2020: The ASX experiences significant volatility and a sharp decline in March due to the COVID-19 pandemic, with the All Ordinaries index dropping by over 30% in a month.

Indices

The Australian Stock Exchange is also home to several well-known indices that track the performance of various segments of the Australian market. Investors can trade some of these indices at the best ASX brokers:

  • S&P/ASX 200: This is the main benchmark index for the ASX, made up of the 200 largest and most actively traded companies on the exchange. The S&P/ASX 200 is widely used to measure the overall health of the Australian country.
  • S&P/ASX 300: A broader index that includes the firms in the S&P/ASX 200 as well as an additional 100 smaller-cap companies.
  • S&P/ASX 50: This tracks the performance of the 50 largest companies on the ASX by market capitalization.
  • S&P/ASX Small Ordinaries: This index tracks the performance of around 300 small-cap firms that are not included in the S&P/ASX 200 index.
  • S&P/ASX All Ordinaries: Made up of the 500 largest companies listed on the ASX, making it a more comprehensive benchmark than the S&P/ASX 200.

In addition to these main indexes, the ASX also has other indexes that track specific market segments such as resources, technology, and healthcare. These include:

  • S&P/ASX 200 Materials Index
  • S&P/ASX 200 Information Technology Index
  • S&P/ASX 200 Health Care Index

Biggest Players

ASX brokers are home to some of the largest and most valuable companies in Australia, spanning various industries. The largest share of the exchange by far is taken up by the financial sector, which alone accounted for more than 40% by market cap in 2022. Other big players include materials and industry, which combined made up more than 20% of the exchange that year.

Here are some of the biggest players on the exchange, based on their market capitalisation and share price in 2023:

  • Commonwealth Bank of Australia (CBA): With a market cap of approximately AUD 200 billion and a share price of around AUD 100, CBA is the largest company on the ASX. The bank is one of the “big four” Australian banks and offers a range of financial services, including retail, business and institutional banking, insurance, and broking services.
  • BHP Group Limited (BHP): BHP is one of the largest global resources firms and the largest mining company on the ASX, with a market cap of approximately AUD 150 billion. BHP is known to produce oil and gas, iron ore, coal, copper, and other minerals. In early 2023, a share cost almost AUD 50.
  • CSL Limited (CSL): CSL is a global biotech company that develops and manufactures life-saving biotherapies and vaccines (market cap: approximately AUD 120 billion). The company operates in more than 30 countries and had a share price of AUD 350 in early 2023.

Other notable ASX-listed companies include Goodman Group, Qantas, Macquarie Group Limited, DLT, and GME. Note, the best ASX brokers will offer low-cost investing in these securities.

Australian Shares on Pepperstone

Australian Shares (Financial) at Pepperstone

How Does The Australian Stock Exchange Work?

The ASX provides a platform for companies to list their securities and for investors to buy and sell those securities. Retail traders can then speculate on these firms using brokers with access to the Australian Securities Exchange.

Here is how it works:

  • Companies that wish to list on the ASX must meet certain requirements, such as having a minimum market capitalisation. In 2023, the minimum capitalisation requirement for the ASX main board was AUD 75 million. This differs for different boards, for example, the ASX Small Caps, which is designed for smaller firms. The minimum capitalisation requirement for this board was AUD 10 million in 2023.
  • Once a company is listed, its shares can be traded on the Australian Stock Exchange. Buyers and sellers of shares place orders through ASX brokers, who then place the orders on the exchange’s trading platform.
  • The ASX platform matches buyers and sellers of shares, and the trade is executed.
  • The price of the shares is determined by the supply and demand for those shares. If there are more buyers than sellers, the price of the shares will go up, and vice versa. The top Australian Stock Exchange brokers offer insights into daily volume and volatility.

Tiers

Some stock exchanges have tiers for their listed companies, with higher tiers needing a higher market cap to appear on the listings. This is similar to the different boards ASX has.

The top tier is the ASX 200. These companies are typically well-established, blue-chip companies with a strong track record of profitability and liquidity.

The second tier is known as the ASX 300, which is made up of companies ranked between 201 and 500 by capitalisation. These companies are typically mid-sized, growth-oriented firms that have not yet achieved the size and scale of the largest companies on the ASX.

The ASX All Ordinaries is the third tier and is a broader index that includes all companies listed on the ASX, except for those listed on the ASX 200 and ASX 300. This includes many smaller firms that still have plenty of potential for growth.

The ASX also has other indices that track specific sectors or industries, such as the ASX Small Ordinaries, the ASX 50, and the ASX Emerging Companies Index. However, most retail ASX brokers do not provide access to these.

Weightings

ASX indexes are heavily influenced by the performance of the largest companies listed on the exchange due to each company’s weighting being determined by its market cap. Capitalisation refers to the total value of a company’s outstanding shares of stock, and is calculated by multiplying the company’s share price by the number of shares outstanding.

The S&P/ASX 200 is a market-capitalisation-weighted index, which means that the companies with the highest market capitalisation make up a larger percentage of the index than smaller firms.

Australian Stock Exchange Rules

How Do Companies Get Listed?

For a company to be listed on the ASX, it must meet certain requirements. This is to ensure that companies are of sufficient size and financial standing to be listed on the exchange and to provide investors with the information they need for trading. Some of the key requirements for listing on the ASX include:

  • Profit test or asset test: The company must either prove it has a satisfactory earnings history or asset base.
  • Company structure: There should be a suitable legal structure, with clear ownership and management arrangements.
  • Financial requirements: There are certain financial thresholds to be met, including meeting a minimum market capitalisation (currently A$75 million) and having at least 300 shareholders.
  • Corporate governance: The company needs to comply with certain corporate governance requirements, such as having a board of directors, an independent chairperson, and audit and remuneration committees.
  • Compliance with listing maintenance rules: The company must agree to comply with the ASX Listing Rules and other regulatory requirements, including regular financial reporting and disclosure of material information.

Reviews

The ASX typically announces any changes in rankings to the boards well in advance, but here is a comprehensive list of when each index is reviewed:

  • S&P/ASX 20; 50; 100; 200 and 300: Quarterly in March, June, September, and December
  • S&P/ASX All Ordinaries: Semi-annually in March and September
  • S&P/ASX All Technology Index: Quarterly in March, June, September, and December
  • S&P/ASX Small Ordinaries: Semi-annually in March and September
  • S&P/ASX MidCap 50: Quarterly in March, June, September, and December
  • S&P/ASX 300 Metals and Mining Index: Quarterly in March, June, September, and December
  • S&P/ASX 200 A-REIT Index: Semi-annually in March and September
  • S&P/ASX All Australian 50: Quarterly in March, June, September, and December
  • S&P/ASX All Australian 200: Quarterly in March, June, September, and December
  • S&P/ASX 200 Index: Quarterly in March, June, September, and December

Australian Securities Exchange Trading Hours

The ASX is open for live trading Monday through Friday, except for public holidays. Trading hours at ASX brokers vary depending on the type of securities being traded.

For equities, the ASX trading hours are from 10am to 4pm Australian Eastern Standard Time (AEST). This is equivalent to 11pm to 5am Greenwich Mean Time (GMT) during daylight saving time and 12am to 6am GMT during non-daylight saving time.

The ASX also has different trading hours for fixed-income and commodities, which can be found on the ASX website.

It’s important to note that the ASX may have special trading hours during certain periods, such as Christmas and other public holidays. Additionally, in the event of an extreme market movement (such as unexpected economic news), the ASX may implement a securities halt to protect investors.

Traders can check the ASX calendar for information on scheduled trading hours and public holidays. Alternatively, the best Australian Stock Exchange brokers publish details of closures on their websites and platforms.

Bottom Line On Australian Stock Exchange Brokers

The ASX presents a strong option for those looking to diversify their portfolios and get exposure to the Australian market. With a wide range of securities and indices available for trading, along with easy access to asset data and analysis, traders have many tools at their disposal to trade at ASX brokers. While there are risks involved in trading on any exchange, the ASX offers a stable and regulated environment for traders to operate in. With its long history and strong reputation, the Australian Securities Exchange is a trusted and reliable option for UK investors.

To get started, sign up with one of the best ASX brokers.

FAQ

Why Has My Broker Halted Trading On The Australian Stock Exchange?

Several factors can potentially halt or disrupt trading on the ASX. Examples include elections in major countries like the US, natural disasters, global pandemics, market crashes, and regulatory changes. Unexpected events, such as a system shutdown, can completely halt the market. The top Australian Securities Exchange brokers will communicate any changes to standard operating hours to their customers.

What Are The Best Brokers With Access To The Australian Stock Exchange?

This will depend on your financial goals and investing requirements. Look for oversight from the FCA or ASIC, low spreads and commissions, user-friendly platforms and apps like MT4, plus access to market information and expert insights on the equities listed on the Australian Stock Exchange. Use our ranking of the top ASX brokers to find a suitable firm.

Who Is The Regulator Of ASX Brokers?

The ASX is regulated by the Australian Securities and Investments Commission (ASIC), which is the regulatory body for financial services in Australia. However, traders in the UK should look for ASX brokers that are regulated by the Financial Conduct Authority for added protection when investing on the Australian Stock Exchange.

What Does The Australian Securities Exchange Do?

The ASX is Australia’s primary stock exchange and is also used as an indicator to measure the health of the Australian economy. It is a marketplace for investors to buy and sell financial products such as stocks and ETFs. The best ASX brokers also offer leveraged derivatives like CFDs which are suitable for short-term trading.

Are There Goldmining Companies Listed At Australian Securities Exchange Brokers?

Yes, there are several gold mining companies listed on the Australian Securities Exchange, including Newcrest Mining, Northern Star Resources, Evolution Mining, and Saracen Mineral Holdings. The top ASX brokers will offer direct trading in the stocks of these firms or exposure through indices, ETFs and CFDs.

How Can I Find The Australian Stock Exchange On My Broker’s Platform?

The Market Identifier Code (MIC) for the Australian Securities Exchange is XASX. Most AXB brokers use this or a slight variation. Simply search for the code in the firm’s desktop platform or mobile app.