Online trading FAQs
What can I trade via the Internet?
All exchange-traded securities, including ordinary shares and warrants listed on the ASX.
What is the minimum value of shares that I can buy?
If you don't already own a particular security, ASX requires you to trade a minimum of $500 worth of it. But once you have $500 worth of an individual security, you can buy any value you want.
Do I have to trade in round lots?
In Australia, you can trade any quantity you want, as long as it's a whole number. For example, you can buy one share, 10,000 shares, 10,321 shares and so on.
What's the maximum sized order I buy and sell online through CMC Markets Stockbroking?
CMC Markets Stockbroking will accept any size order, as long as:
- Buy orders are covered by cleared funds in your cash account.
- Sell orders are covered by CHESS Sponsored Holdings. When you sell shares online, the money is available to buy more shares as soon as your trade is completed.
What is Straight Through Processing?
CMC Markets Stockbroking uses Straight Through Processing (STP), which electronically approves your order and sends it directly to the ASX. This is unlike some online brokers who send orders to a dealer to approve and manually enter into the market — which, in times of market turbulence, could significantly delay your order getting to the market.
Occasionally, though, we will ask a dealer to approve an order before it goes to the market, for example if:
- The order price is too far from the market.
- There has been little trading activity in the stock.
This protects you if you enter an order incorrectly (for example, you put a price of $10.00 instead of $1.00).
How fast are orders entered?
During market hours, your order can be on the market seconds after CMC Markets Stockbroking receives it. How quickly we receive your order also depends on the speed of your Internet connection.
How do I pay for my shares?
We accept payment through your CMC Markets Cash Account. Remember, you must have enough cleared funds in your cash account before you place your order.
Alternatively, for sell orders, brokerage will be deducted from the sale proceeds.
Can I send orders via email?
Unfortunately, we don't accept email orders.
Can I place an 'at market order' online?
Yes, during market hours. At market orders are placed three price steps above the last trade. For this reason, placing an at market order does not guarantee that your order will trade.
What is a limit order?
A limit order is when you place either:
- A set maximum price on a buy instruction, or
- A set minimum price on a sell order.
If the market doesn't reach the set price, the order won't be executed.
When will my order expire?
You can place an order with a specific expiry date up to eight months in the future. Alternatively, you can mark an order as Good Til Cancelled (GTC), so it won't expire until you execute or cancel it, or the stock is purged by the ASX (which may happen when the stock goes ex-dividend, for example).
If an expiry date falls on a public holiday or weekend, the order will be purged on the evening of the previous trading day.
Can I change or cancel my orders, and will I be charged for it?
You can change or cancel an order that has not been filled at any time, free of charge. However, if you increase the quantity of an order, the order may be split into two separate orders, and you would be charged an extra brokerage fee.
What is a split order?
Orders at the same price level are queued in the order they were received. So if you increase the quantity of an order, and there are orders queued behind your original order, the ASX's market systems automatically split your order into two. The system will then put the second order at the end of the queue.
Why was I charged brokerage twice on a split order?
Yes, because the ASX market treats split orders as entirely separate orders. So standard brokerage charges apply to both orders.
Why is it that sometimes, when I increase the quantity of my order the ASX doesn't spilt it?
This would be because there are no orders behind your original order in the queue.
How can I avoid splitting an order?
You can avoid a split order by:
- Increasing the quantity and changing the price, or
- Cancelling the original order, submitting new order for the new quantity. However, if your original order has already partially traded, you'd still have to pay brokerage for both orders.
What happens to my shares once I have bought them?
CMC Markets Stockbroking will enter your shares into your portfolio, and you'll be able to trade them in the future. Your shares will also be registered with CHESS under your Holder Identification Number (HIN) and a statement will be sent to your registered address. You can find out more about CHESS here.
How will I be notified of an order's progress or any problems?
CMC Markets Stockbroking has an online message system that takes you through each step of your order's progress:
- Placement on the market.
- Partial fills.
- Final fill.
Simply click Order History and check the status of the order.
The system will also let you know if your order is rejected, and explain why.
You can also choose to receive an email notifying you about each step.
You can turn this notification on or off by choosing Preferences and changing the current setting.
Will I still receive trading confirmations?
Yes. We'll forward trading confirmations through email or post for each trade, or you can view and download them from the Confirmations page.
How long is the settlement term?
For most ASX securities, settlement in T+3 days — in other words, three trading days from the date the trade was completed.
How do I receive my proceeds from share sales?
We will credit the proceeds from your online share sales to your cash account.
If I sell my shares can I use the funds immediately to buy more shares?
Yes, you can — but remember that the funds won't be available until the sale is settled.
Why would a buyer offer more than a seller is asking, or vice versa?
If the market is in pre-open, buyers can overbid sellers to have their bid at the top of the market. Sellers may also deliberately choose to offer their shares at a lower price to ensure the sale goes ahead. But once the market opens, all the bids are compared and the ASX system allocates those shares that are overlapping, until a normal market is established — that is, the buyer price is below the seller price.
Why was my order rejected?
The most common reasons for an order to be rejected are:
- An invalid quantity or price value. Check the help panel in the buy and sell windows for the correct price steps.
- An incorrect price has been entered (for example, $1,000 instead of $10).
Orders may also be rejected or forwarded to a Designated Trading Representative (DTR) for compliance reasons.
ASX Business Rules and the Corporations Act require CMC Markets Stockbroking to prevent false and misleading trading and help facilitate an orderly market. To do this, they submit every order to be checked to ensure they comply with trading rules.
When can I place orders?
You can place an order 24 hours a day, 7 days a week. Orders placed outside of market hours are queued and sent to the market on the next trading day at 7am.
Orders placed between 7.00am and 4.15pm on trading days are sent directly to the market.
Market trading hours are generally between 10.00am and 4,00pm. The market is closed on public holidays.
The status of my order says Waiting — what does that mean?
A Waiting status means the order has been received outside of market hours, and will be sent when the market opens.