How to Sell Shares Online

Posted on 13. Sep, 2011 by admin in Investment, Taxation

Getting started with share trading can be daunting for the uninitiated, particularly when you may already own shares that you didn’t buy in the first place whether it be through an inheritance or employer sponsored share schemes.  The process of selling shares can be surprisingly easy, but there are points to consider such as timing in a volatile market and taxation.

If you have decided that offloading shares now to get hold of cash is more important that waiting for the right time, there is no investment decision to be made and as such the process of selling shares is straightforward.  So the main consideration would therefore be the cost of selling.  Online brokers offer the lowest fees and offer simple methods to get the process in motion.  E*Trade is one such service which has a visitor options so you don’t actually need to sign up to an account – just follow the instructions to email the appropriate details and before long the shares will be sold and payment made.  The ASX (Australian Stock Exchange) can be contacted to help you choose appropriate online brokers.  The broker will request the details quoted on the holding statement, which includes name, address, number of shares, company name and the shareholder reference number (SRN).  The SRN is required by the broker to perform transactions on your behalf.

If you are not sure on the investment benefits of selling now or holding the shares, you should seek advice from a full-service broker who will establish your circumstances to help you make the appropriate decision.  These brokers can charge fees either on a percentage basis or annual fee depending on the level of service required.  Once again the ASX is a good source of information for brokers.

Alternatively, this may be a good opportunity to learn the ropes by watching the market to take note of share changes.  After observing the market you may get a better feel for any share cycles to help predict the top and bottom points of the cycle.

One more consideration is taxation.  Capital gains tax (CGT) may be payable on the profits from selling your shares.  Usually the price of the shares at the time you obtained them will be the CGT cost base for calculating the profit.  For inheritance this would be based on the deceased’s date of death.  With company share schemes, the price will be stated on the original advice. You should seek advice from a taxation professional if you believe CGT may be payable.

For more information, the ASX offers free online courses to help you get started.

Tags: capital gains tax, CGT, sell shares, share trading, shares