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Minimum Marketable Parcel (MMP)

The ASX enforces minimum orders for all first-time purchases of a stock. Learn more about the regulations here.

When trading with a CHESS-sponsored platform and having your own HIN, there are certain order size regulations under the ASX operating rules procedures.

All opening buys are subject to a A$500 minimum order as determined by the ASX. This is known as the “minimum marketable parcel”. Once a position has been opened, investors can buy or sell any quantity of the stock.

What is the minimum marketable parcel (MMP)?

The minimum marketable parcel is a rule defined by the Australian Securities Exchange where investors must purchase a minimum shareholding of $500 when buying shares in a new stock or exchange-traded fund.

Any additional purchases that an investor wants to make in the same secuirty must have a minimum order value of $20.

The $500 or $20 minimum does not include brokerage fees.

Example of a first time share purchase

Let's go through an example of purchasing a share for the first time with MMP and a subsequent purchase of the same share.

First time buy order for $BHP

On the Stake platform you will need a minimum of $500 + $3 brokerage to purchase your first shares in $BHP. Orders are rounded to the nearest share so you may need additional purchasing power in your account.

$500.00 + $3 brokerage = $503.00

$503.00 x at market ($46.50) = 10 shares*

10 shares* x at market ($46.50) = $465.

*$ amount orders are rounded down to the nearest share.

Since the amount of $500 cannot purchase a round number of shares, the order must be increased to a total of 11 shares of $BHP.

11 shares x at market ($46.50) + $3 brokerage = $514.50

To make a first time purchase of $BHP, investors would need $514.50 in their account.

Second purchase of $BHP

Now that the investor already holds BHP in their account, there is no $500 minimum order value, instead, it drops to a minimum of $20.

Using the same price above if the investor wanted to buy another share of $BHP.

1 share x at market ($46.50) + $3 brokerage = $49.50

The investor would now own 12 shares in their account.

Why do some platforms let you buy under the $500 minimum order value?

The MMP applies to all CHESS-sponsored trades. If you have an account with another platform that does not require an initial $500 minimum order for each security, they may be operating on a Custodial model, where all your shares are linked to the broker’s HIN.


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Stakeshop Pty Ltd, trading as Stake, ACN 610105505, is an authorised representative (Authorised Representative No. 1241398) of Sanlam Private Wealth Pty Ltd (Australian Financial Services Licence No. 337927) ('Sanlam') and an authorised representative (Authorised Representative No. 1241398) of Airwallex Pty Ltd (Australian Financial Services Licence No. 487221) ('Airwallex'). Stake is not authorised by Airwallex under Airwallex’s AFSL to arrange for clients to be issued with securities as Airwallex is not authorised under its AFSL for this purpose. Stake is not authorised by Sanlam under Sanlam’s AFSL to arrange for clients to be issued with a non-cash payment facility as Sanlam is not authorised under its AFSL for this purpose. Stake SMSF Pty Ltd (‘Stake Super’) is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up a self managed super fund (‘SMSF’). When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment of a SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. Stakeshop Pty Ltd will also run marketing and promotions to you under. For more information about SMSFs, see our SMSF Risks page.The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake and Stake Super, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice given by Stake is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Financial Services GuideTerms & ConditionsPrivacy Policy and Disclaimers  before deciding to invest on or use Stake or Stake Super. By using our website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake and Stake Super are registered trademarks in Australia.

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