Quick Quote

How to buy and sell securities

03/07/2022 09:02p.m.
NZ/AU Markets   
Exchange Traded Funds   
NZ Fixed interest   
New Issues
Cash Management Trust Account

Step 1 - Check your account balance

Select ‘My accounts’ and ‘balances’ to check the balance of your Cash Management Trust account (CMT). If you do not have sufficient funds in your CMT to cover your investment, you will be charged additional fees

For instructions on how to top up your CMT, click here.

Step 2 - Select your investment

Select ‘Buy’ or ‘Sell’ and choose the exchange on which you wish to invest. New clients can select from the NZX or the ASX (additional registration procedures apply)

Then enter the market security code or a partial company name to search the exchange

  • Quantity - The number of shares you wish to purchase or sell
  • Price limit - If buying, the highest price you are willing to pay. If selling, the lowest price you are willing to receive
  • At current sell price - If you check this box, you agree to accept the current market price. This means if you are buying securities, you agree to accept the current ‘sell price’. If you are selling securities, you agree to accept the current ‘buy price’
  • Expiration - This allows you to set the maximum time period for the fulfilment of your order. You can choose between ‘until cancelled’, ‘until a specified date’, or ‘until end of market day’. We will hold your order open until your order has been filled, or the specified period has expired, whichever happens first
  • FIN number - If you are selling securities on the NZX, you may be asked to enter your Faster Identification Number (FIN). This is a 4-digit pin number that was issued to you when you first purchased shares on the exchange. If you have forgotten your FIN, please contact the share registry that issued the shares (Computershare or Link Market Services)
  • If you’re buying or selling on the ASX and your holdings are not CHESS-held, you’ll have the option to enter your SRN (Shareholder Reference Number), excluding the letter ‘I’ in front. You can also choose between settlement currencies. If you do not specify, the currency will default to NZD
  • If your sell order trades but you don’t own sufficient shares to cover what you have sold, this is called short-selling. Short selling is not allowed and if this occurs we may buy back your holding at any time. You will be responsible for brokerage, losses and any associated costs and also forfeit any profits

Please note, we cannot guarantee full execution of your order at the current buy or sell price

All orders are subject to market conditions at the time of placement. The liquidity of your chosen security may be affected by factors such as the available quantity, competing orders in the marketplace and how often the security is traded in the market.

Like all market participants, Direct Broking is subject to regulatory obligations, including obligations to maintain an orderly market and to manage any potential conflicts of interest. In certain cases, this may require your order to be reviewed by one of our expert operators

Step 3 - Confirm your order

Before you place your order, please check that the details are correct Any errors will impact the speed of execution of your order, or could result in your order being rejected:

  • Have you entered the price in cents, not dollars? For example, 250 not 2.50
  • Is the quantity correct?
  • Does your order meet minimum holding requirements?
  • If buying, do you have sufficient funds in your CMT? Does your order meet minimum holding requirements?
  • If selling, do you hold sufficient securities to fulfil the order? Have you entered a valid FIN?
  • If the order is correct, click ‘confirm’ to proceed with the transaction, or ‘change’ to edit the details.

What happens next?

Sometimes your securities may not all be purchased or sold at the same time. It may take a few hours, days or weeks before your entire order can be executed. It is important to keep an eye on your order, especially as the expiration date draws closer. Brokerage fees will be charged on the order as a whole, so you will not be charged separately for each partial fulfilment

Once all of your shares have been purchased or sold, we will email you a contract note for your records, and as confirmation that your order has been successful

The contract note will specify the shares or securities you have purchased or sold, the quantity, the price per share, the brokerage charge and the total cost (for buy orders) or total credit (for sell orders)

Whenever you buy or sell shares, you will receive a ‘statement of holding’ from one of two New Zealand share registries, Computershare or Link Market Services. This document provides confirmation of your updated share ownership and also contains your CSN

If this is your first investment, you will also be issued with your FIN. Your FIN should be treated like a pin number on your EFTPOS card and kept confidential. You will need your CSN, along with your FIN, in order to sell the shares

Congratulations! You’ve just completed your first online transaction with Direct Broking