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How to trade when under 18?

Discussion in 'Shares' started by Elliott, 4th Jan, 2010.

  1. Elliott

    Elliott New Member

    Joined:
    4th Jan, 2010
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    Location:
    Sydney, NSW
    Hi everyone,

    I'm 17 years old and through much time and entrepreneurship I have acquired some money. I'm not really happy with term deposit rates right now and would like to gain some experience while I'm young in the securities market. I've had a look at Belldirect, Comsec and a few other online trading and settlement accounts but they're of course limited to those over the age of 18.

    Through my research so far it seems that the only way to do so online would be to have my mum set up an account and set me as the sole trustee or something similar.

    Does anyone know what I can do or have any advice?

    I understand that there are different tax obligations of under 18s in regards to securities, however I just want to know how I'd be able to enter the market and try to make some coin.

    All help is greatly appreciated, I will be checking back regularly so if you need further information then please let me know.

    EDIT - Through some further research I can see that CMC Markets have accounts available for Minors, so I will look into this but still do appreciate any advice.
     
    Last edited by a moderator: 4th Jan, 2010
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    My advice?

    Keep your money in the bank for now.

    Start reading about trading and learn the theory first.

    Start "paper" trading ... ie pretending to trade using real data, keep full notes of what you would have bought and when, then see whether you can actually make any money in a sustainable manner from trading.

    Trading is a great way to lose money - most people who start trading achieve this quite well. Some may make a bit of money ... but to make good money (ie consistently more than you can make from leaving your money in the bank risk-free) ... you need practice, patience, and a good system.

    I wouldn't be setting out to "learn" the art and science of trading using your hard earned money - not until you are sure you aren't just taking on a very expensive hobby.

    This isn't just advice for a 17 year old ... the same applies to anyone looking to get in to share trading.
     
  3. Billv

    Billv Getting there

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    Location:
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    Exactly my thoughts, there is no safer investment than a term deposit at present
     
  4. AsxBroker

    AsxBroker Well-Known Member

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    At present???
     
  5. Billv

    Billv Getting there

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    Dan
    was the question for me?
     
  6. AsxBroker

    AsxBroker Well-Known Member

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    Location:
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    Apart from a government bond I can't think of any investment which would be safer than a term deposit at any time. Saying that, governments and banks have hit the wall with investors losing those funds. Fortunately neither have happened very recently.