Odd Lot: What It Means for Australian Investors in 2025

The Australian share market is buzzing with new investors and evolving trading practices in 2025. But with all the focus on ETFs, micro-investing, and fractional shares, one old-school concept is quietly resurfacing: the ‘odd lot’. What exactly is an odd lot, and why should modern investors care? Let’s break it down.

What Is an Odd Lot?

Traditionally, shares on the ASX (Australian Securities Exchange) are traded in standard batches called ‘marketable parcels’—typically multiples of 100 shares. An odd lot refers to any parcel that’s smaller than this standard unit. For example, if you own 37 shares of a company, that’s an odd lot. These can result from dividend reinvestment plans, share splits, or even the sale of part of your holding.

• Standard lot: 100 shares (or another round figure, depending on the stock)
• Odd lot: Less than the standard trading unit

While online brokers and micro-investing apps have made it easier to buy fractions of shares, odd lots remain a distinctive category—especially when it comes to how trades are executed and priced.

Why Odd Lots Matter in 2025

With the ASX embracing digital innovation and a new generation of investors entering the market, odd lots are no longer just an administrative quirk. Recent updates in 2025 have made odd-lot trading more visible and, in some cases, more costly or advantageous, depending on your approach:

• Trading Costs: Some online brokers now charge slightly higher brokerage fees for odd-lot sales due to the extra handling required. For example, SelfWealth and CommSec have updated their fee schedules in 2025 to reflect this, charging $12–$20 for odd-lot transactions, compared to $5–$10 for standard lots.
• Liquidity Concerns: Odd lots can sometimes take longer to sell, as there may be fewer buyers for non-standard parcels. Market makers may offer less attractive prices for odd lots, resulting in wider spreads.
• Corporate Actions: Companies conducting buybacks or capital raisings may treat odd-lot holders differently. In 2025, several ASX-listed companies have launched ‘odd lot buybacks’—offering to purchase small parcels at a premium or at no brokerage cost, to simplify their share registry and help small investors exit easily.

For example, in early 2025, Telstra ran an odd lot buyback to help small shareholders cash out their holdings without brokerage fees. This proved popular among investors who had accumulated small parcels through dividend reinvestment over the years.

Managing Odd Lots: Practical Tips for Investors

If you find yourself holding an odd lot, here’s how to navigate your options in 2025:

• Consolidate or Top Up: Consider buying additional shares to round up to a marketable parcel. This may reduce fees and make your holding easier to sell.
• Use Broker Services: Some brokers, like Nabtrade and CMC Markets, now offer ‘odd lot sale facilities’ where you can sell small parcels as part of a bulk trade at a fair price.
• Watch for Buybacks: Keep an eye on ASX announcements for odd lot buyback offers, which can provide a low-cost exit route.
• Reinvest Strategically: Use dividend reinvestment plans (DRPs) wisely. If you’re close to a round number, consider opting out of DRP to avoid ending up with multiple odd lots.

It’s also worth noting that with the rise of fractional investing platforms like Stake and Superhero, the lines between odd lots and fractional holdings are blurring. However, on the ASX, odd lots are still treated differently to standard parcels—especially during corporate actions and off-market trades.

The Bottom Line: Odd Lots Aren’t Just Loose Change

Odd lots may sound like a relic from a bygone era, but in 2025, they’re back in focus for Australian investors. Whether you’re managing a legacy holding, participating in a buyback, or using a micro-investing app, it pays to understand how odd lots work, what they cost, and the options available to you. Smart management of odd lots can help you minimise fees and make the most of your share portfolio—no matter how small.