Cheapest non advisory brokers

Published in Money Magazine, January 2011

Some share traders and investors still prefer to place buying and selling orders over the phone rather than on the net. 

If this is you then the winner of the gold medal for Cheapest Non-Advisory Phone Broker, First Prudential Markets's FP Online, would be a good one to consider. 

Not only does it not charge more for trading over the phone, its brokerage rates start from a low $14.95.

"First Prudential is one of only six online brokers who don't charge extra for trading over the phone, as opposed to over the internet," says Mitchell Watson, an analyst with leading financial researcher Canstar Cannex which ranked the brokers for Money.

"First Prudential is also up there with very competitive brokerage in this market," Watson adds.

The broker, which also won this award last year, has shaved its rates from $16.50 for trades up to $14,950. 

"Improved technology means the costs of our operating systems are trimmed – we invest some back into our service but we also were able to reduce rates," says Matthew Press, general manager of First Prudential.

"Differentiating our share trading has been based on offering the highest level of personalised service to our clients. 

We are constantly improving our technology and adapting our product for improved mobility.

“The launch of our smart phone application is an example of this.

"However, the more things change the more things stay the same. 

Little things are often neglected, such as the convenience of allowing a less frequent trader to call, at no additional charge, and talk to a professional, competent representative who very efficiently can place a trade, adjust a stop loss or provide a price update over the phone for no additional charge."

The alternative is using a full-service broker, costing up to 1% a trade, Press says. 

It's also a service appreciated by clients who are away from their desks and computers.

Second place went to Trader Dealer's Rapid Trader Standard and third to its Rapid Trader Pro Trader.

Fact file

Plenty of free help out there!

If you are itching to get into the sharemarket but don't know where to start there is plenty of help out there, much of it free.

The ASX ( is a good place to start. Here you will find free online courses, many of which include quizzes to check your understanding, ranging from share basics to options and listed CFDs. 

You can also sign up to play the twice-yearly sharemarket game and to receive the monthly investor update email newsletter.

There is a program of investor hour seminars in capital cities with podcasts available for those you cannot attend. 

On the site you will also find details of videos and webinars.

Another source is your online broker, when you choose one. 

Many of these have excellent education and research packages as part of your membership. 

Or you could sign up with a full-service broker who will guide you on which shares to buy and when to sell, for a higher fee than that charged by the online sector. 

If you are trading and want to move to the next level, share trading education courses are run by companies such as Wealth Within.

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