How much money do you need to start trading?
Enough to manage risk. Not enough to impress yourself.

Quick answer

What is the minimum amount to buy shares on the ASX?

ASX says it does not itself impose a minimum order size or value. However, ASX Settlement rules can prevent a broker from initiating a CHESS transfer that would create a holding worth less than a marketable parcel, which is generally $500. Because of that, many brokers impose a minimum first purchase of around $500 for a particular ASX-listed security.

Your broker may apply different minimums, and fractional or micro-investing platforms can operate differently. Check the exact rules before assuming $500 is universal.

Why is the broker minimum not the real answer?

Suppose a broker lets you start with $500. That tells you the account can place a trade. It says nothing about whether $500 supports sensible diversification, whether brokerage consumes too much of the position, or whether losing part of that money would matter to your finances.

The better question is: how much capital can you genuinely afford to put at risk while still using position sizes that make sense?

How do fees affect small trading accounts?

Brokerage and platform fees are proportionally larger on small trades. A $10 fee on a $500 purchase is 2% before the investment has moved a cent. If another fee applies when you sell, the hurdle rises again.

Moneysmart specifically warns that fees can be a large share of a small trade. That does not mean you need a huge account; it means costs belong in the maths.

What about fractional shares and micro-investing?

Some platforms allow investing with a few dollars or buying fractions of a share. That can reduce the cash needed to start, but the legal and beneficial ownership structure, transferability and fees can differ from buying whole ASX shares through a traditional broker.

Moneysmart recommends understanding who actually owns the investment, what happens if you want to move platforms and what fees apply.

How much should you risk on one trade?

There is no universal percentage that is correct for everyone. Position size should reflect your account size, the distance to invalidation, expected slippage, liquidity and the amount of loss you can tolerate without damaging the account or your wider finances.

Do not reverse the process by deciding how many dollars you want to make and then forcing the position size to match the fantasy.

Should you borrow money to start trading?

Borrowing magnifies both gains and losses. Moneysmart describes borrowing to invest as a high-risk strategy and notes that the loan and interest still have to be repaid if the investment falls. For a beginner still learning execution and risk, adding leverage makes the learning environment less forgiving, not more sophisticated.

What should you learn next?

Read Trading Risk for Beginners, Position Sizing Explained and What Is Paper Trading?.

References: ASX, “Reporting misconduct to ASX FAQs”; ASIC Moneysmart, “How to buy and sell shares”, “Micro-investing” and “Fractional share trading”, accessed September 2026.