Growing your Australian share portfolio without the right trading tools and support from a good online broker is a mistake. From giving you access to the right investment opportunities to providing market insights via sophisticated fundamental analysis tools, a good online brokerage will become an indispensable partner on your stock trading journey.
In this guide, I ranked and reviewed the 9 best online brokers in Australia, highlighting my top picks for 2024.
1. eToro.
Overall best online broker in Australia.
I tested every part of this trading platform to find out why it has over 20 million users worldwide.
Launched in 2007 by Yoni and Ronen Assia, eToro impresses with its copy trading features, meticulous commitment to security and a sleek interface.
The ASIC-regulated broker offers a diverse range of assets, including Australian and US stocks, cryptocurrencies and ETFs.
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Pros.
Thanks to e-Toro‘s user-friendly interface, intuitive search menu and fast deposit process, the sign-up and onboarding process is surprisingly painless.
Its proprietary WebTrader 2.0 desktop trading platform has a very good UI, while a user-friendly mobile trading app allows you to continue executing fast trades and monitoring your successes (or failures, ha!) on the go.
The mobile app gives you 100% of the desktop platform’s features.
A major issue with many online stock brokers is that they throw a lot of information in your face at once. This overwhelms beginners and annoys experienced investors.
- Not eToro. You get a sleek experience throughout – from the moment you sign up until you withdraw funds.
As a pioneer in copy trading, eToro allows you to copy the trades of expert traders.
This feature is technically free, but you pay for it via wider spreads (more about them shortly).
Expert Tip.
Copy trading is a good shortcut to getting involved in the stock market – if you don’t have the time to learn trading. Be sure to study the trader’s trading history before copying them. A lot of success in recent months often obscures an underwhelming track record across a 3-5 year timespan.
eToro has a plethora of helpful trading and investment resources, including videos, podcasts, and a trading school with a well-structured curriculum.
Important!
Don’t rely solely on eToro’s education (or that of any other broker) to learn the art of investing and trading. They will not teach you how to win – because your interests are not aligned. Learn how to perform fundamental analysis if you plan to get serious.
I like that you can also get a $100,000 demo account when you join.
It works just like a real trading account – but with virtual money.
You get to learn the ropes of trading, wrestling with all the intricacies of managing a real trading account – without putting your hard-earned cash on the line.
| Who Is eToro Best For? | Why? |
|---|---|
| Time-poor, medium-to-long-term share/ETF investors with limited time to research companies. | Because you can leverage the expertise of advanced traders (helpfully rated for past success/risk) via its top-notch copy trading features. |
| Budget-conscious investors who want to build a diversified stock portfolio with low levels of turnover. | BecauseeToro doesn’t charge commissions on stock and ETF trades. |
| Beginner and intermediate investors ready to explore a broader range of assets. | eToro offers over 3,000 tradeable instruments, has a great demo account, and allows you to spend less to buy fractional shares. |
Cons.
Let’s start with the elephant in the room.
While eToro is quick to point that it doesn’t charge commissions on stocks, keep in mind that it will charge you currency conversion, withdrawal and inactivity fees.
The currency conversion fee is my least favourite.
Because eToro’s base currency is US Dollars, Australians must pay a conversion fee of 1.5% each time they make a deposit. The same applies in reverse.
This is far from ideal. Thankfully, there are a couple of workarounds.
First, eToro will give you a discount as part of its eToto Club program – if you up your deposit amount.
- Deposit more than $5,000, for example, and you get a 25% discount.
- Exceed $25,000, and you get 50% off.
- eToro will waive the fee altogether if you deposit more than $250,000.
Not that rich?
You can use a currency conversion app like Wise or Revolut to convert your Australian dollars into USD, and then send the funds to eToro.
Wise charges 0.48% for the service as of March 2024.
That’s 66% cheaper than eToro.
You’re welcome.
Oh, and eToro charges a 1% commission on traded cryptocurrency – if you’re watching the bull market that started around November 2023.
This is quite expensive compared with dedicated crypto exchanges, where you can get commissions of less than 30 pips.
Investors looking for a decent level of technical analysis won’t be disappointed, although eToro’s research tools aren’t as good as those offered by professional-grade platforms (e.g., Interactive Brokers.
Recommendations are available only for a limited number of stocks, and the fundamental research data also could use more depth.
Lastly, if you “forget” to trade, eToro will nudge you with a $10 / month inactivity fee after one year.
| Who Should Avoid eToro? | Why? |
|---|---|
| Experienced investors with a higher frequency of trades. | You can find more competitive currency conversion, spread, and account fees on platforms aimed at day traders. |
| Investors who want control and are keen to deepen their technical analysis skills. | Because eToro’s excellent copy trading feature is such a draw, you won’t get the same value if you don’t need it. Plus, its research tools are less sophisticated. |
| People investing with very small sums of money. | Because eToro’s fee structure is complex, complicated by the fact that it operates in US dollars (you’ll incur a currency conversion fee every time you add/withdraw funds in AUD). The fee gets reduced by 50% once your balance exceeds $25,000. |
Overall.
eToro is a top-notch online broker suited to Australians interested in building diversified multi-asset portfolios that tilt towards ASX, NYSE and NASDAQ shares.
Most importantly, eToro is for busy people who plan to take full advantage of its excellent copy trading features. If you don’t have the time to learn fundamental and technical analysis, eToro is your best bet.
While the currency conversion fee is higher than I’d like, you can dodge or deduce it using the abovementioned methods.
The proprietary platform and app are hard to fault – clear, easy-to-use and intuitive, they offer a superb trading experience with surprisingly advanced charting features.
✔ Easy-to-use, clean user interface
✔ Superb copy trading features
✔ Fantastic range of assets
✘ Not for active day traders
✘ Watch out for currency conversion and spread fees
Start Investing In Stocks With eToro
eToro Service ARSN 637 489 466 operated by Gleneagle Asset Management ACN 103 162 278 AFSL 226199 and promoted by eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Investing in shares via a managed investment scheme does not result in direct ownership of the underlying assets. The scheme has legal ownership, the investor has beneficial ownership i.e. the shares are held on your behalf. As the scheme has legal ownership, you have no rights in the securities, including voting rights. Shares are non-transferable. Refer to the Product Disclosure Statement and Target Market Determination. See PDS and TMD before transacting. See full disclaimer.
| How eToro Stacks Up | Score |
|---|---|
| Market Access | 4.5 |
| Fees | 4.5 |
| Trading Platform & App | 4.5 |
| Ease Of Use | 5.0 |
| Customer Service | 4.5 |
| Research & Analysis | 4.0 |
| OVERALL | 4.5 |
| eToro Feature | Why Should You Care? |
|---|---|
| Costs To Factor In | 1.5% currency conversion fee from AUD to USD (discounts of 25%, 50% and 100% apply once your balance reaches thresholds of $5,000, $25,000 and $250,000, respectively). |
| Available Markets | 17 major exchanges, including ASX, NASDAQ, NYSE, LSE, HKEX, TSX and Euronext |
| Available Crypto Markets | 79 coins |
| Support | Ticket only (usually takes 1 business day to respond). |
| Trading Platforms | Proprietary desktop app. Fully featured mobile app for iOS and Android. |
2. Interactive Brokers.
The most comprehensive online brokerage in Australia.
Founded in 1978, Interactive Brokers is a trusted multinational brokerage, and the oldest featured in this review.
Like eToro, Interactive Brokers allows Australians to trade options, stocks, futures, currencies, bonds, funds and CFDs.
I’ve opened an account with them, downloaded their app, and tested their interface and tools to bring you the most comprehensive Interactive Brokers review.
Pros.
Interactive Brokers offers a mind-boggling range of investment options. You can trade on 150 global markets, including 90 stock markets.
Fractional shares and ESG investment options are also available.
Do you need so many products? Probably not. I certainly don’t. But people who do, know who they are.
Expert Tip.
Interactive Brokers offers fractional shares trading on some US, European and Canadian stocks and ETFs.
Like eToro, Interactive Brokers offers a demo account that gives you full access to all its platforms, including Trader Workstation (the flagship desktop platform) and Client Portal (the web-based platform).
Trader Workstation is the crème de la crème of online trading platforms.
Aimed at professional investors, it contains a full suite of research and analysis tools, including live monitoring and risk management tools, technical analysis and IB’s proprietary Options Strategy Lab and Market Scanner.
What impresses me is how heavily customisable the platform is. You can create custom layouts, tiles, and charts for multiple monitors in diverse sizes and arrangements.
Thankfully, if you’re like me – and are intimidated by advanced trading charts – Interactive Brokers also offers the much more retail-investor-friendly Client Portal.
Equipped with an AI assistant, it equips you with the necessary charting tools, news and watch lists.
In addition, Interactive Brokers offers several other platforms, including the new IBKR GlobalTrader mobile app, which offers a simple way to trade stocks and options globally.
Important!
You can also earn interest of up to 3.57% on instantly available cash balances over $15,000. Want to take on more risk? Interactive Brokers offers margin loans, with rates ranging between 5.35% and 6.35%
Interactive Brokers’ fee structure can appear complex at first, but can be summarised as follows: the more you trade, the more you save.
You get fixed and tiered pricing options, with:
- US$0.0005 to USD 0.0035 per share for tiered pricing (depending on monthly volume).
- US$0.005 per share for fixed pricing.
In other words, active traders – especially day traders or institutional investors – will find the fees very low.
Oh, and Interactive Brokers eliminated the $20/month inactivity fee in 2021!
| Who Is Interactive Brokers Best For? | Why? |
|---|---|
| People who want all-in-one platform capabilities, to avoid switching accounts later. | Because Interactive Broker has multiple apps for beginners to advanced investors, and allows you to upgrade when you feel comfortable. |
| Experienced investors focused on research and analysis to underpin their decision-making. | Because the platform’s fundamental, technical research and reporting tools are robust. Powered by Morningstar, they offer high-resolution insights and live market data. |
| Buy-and-hold investors looking to lower their costs. | Because Interactive Brokers boasts low commissions, no penalties for no activity on your account, no minimum deposit amount, and free withdrawals. |
Cons.
Unfortunately, you miss out on e-Toro-style social trading features. InteractiveAdvisors, the robo-advisor affiliate ofInteractiveBrokers,is not available in Australia.
The minimum deposit of $100 is double that of eToro, signalling that Interactive Brokers wants to deal with more serious investors.
Important!
If you want to dabble in crypto, you’ll need to use a dedicated crypto exchange, as cryptocurrency trading is not available to clients ofInteractiveBrokersAustralia.
Because the online broker puts a huge amount of tools, platforms and markets at your fingertips, it can initially seem a little intimidating.
I recommend you set aside time to read their tutorial guides. Don’t try to wing it.
| Who Should Avoid Interactive Brokers? | Why? |
|---|---|
| Stock market investors who value straightforward brokerage fee structures. | Because you’ll get a headache trying to understand Interactive Broker’s fees across multiple plans and asset types. |
| People hoping to engage with an expert peer community. | Because the platform lacks social trading features. |
| New or low-touch investors overwhelmed by too many options. | Because Interactive Brokers covers a huge variety of asset types, markets and extra features like ESG investing and earning interest on returns. |
Overall.
Interactive Brokers is a firmly established online broker for beginner, intermediate and advanced traders looking for an excellent range of investment options.
Offering fixed and tiered commission structures, it is one of the cheapest brokers available in Australia.
While it attracts sophisticated investors looking for low fees and advanced trading tools, it’s also popular among beginners and novices thanks to IBKR GlobalTrader, their simple mobile app for global stock and options trading.
✔ Extremely low cost for high volume trading & margin trading
✔ Fractional investing features
✔ Huge list of supported investment products
✘ Fee structure can be confusing at first
Visit Interactive Brokers
| How Interactive Brokers Stacks Up | Score |
|---|---|
| Market Access | 5.0 |
| Fees | 5.0 |
| Trading Platform & App | 4.5 |
| Ease Of Use | 4.0 |
| Customer Service | 3.5 |
| Research & Analysis | 5.0 |
| OVERALL | 4.5 |
| Interactive Brokers Feature | Why Should You Care? |
|---|---|
| Low Fees You Can Benefit From | 0.08% of trade value (or a minimum of AUD$6) for Australian stocks and ETFs. Depending on your trading volume, US share commissions start from as low as US$0.0005%. |
| Costs To Factor In | You’ll need the equivalent of USD$2,000 in your account to access margin lending. |
| Available Markets | 150 global markets, including 90 stock markets. |
| Available Crypto Markets | Spot Bitcoin ETFs are available to eligible investors |
| Available Forex Markets | 27 currency pairs. |
| Support | Web-based help centre, email, phone and online chat. |
| Trading Platforms | Modern and fully-featured desktop and mobile apps are available for both beginners and more advanced traders (4 platforms in total). |
3. Vantage.
Best platform in Australia for trading CFDs.
Vantage is a CFD trading platform established in 2009. It is regulated in Australia by ASIC and offers trading on CFDs in forex, commodities, crypto, shares, and ETFs.
Pros.
Vantage specialises in trading CFDs, and it does so very well.
You can trade over 1000 instruments via MT4, MT5 and TradingView platforms.
Risk management tools like stop-loss orders, trailing stops, and guaranteed stop orders are all available.
To help you trade while on the move, Vantage offers an intuitive mobile app that is one of the best I’ve seen on the Australian market. You get clear, logical buttons and an easy-to-use interface.
Vantage also offers a free demo account for those looking to hone their trading skills before beginning trading with a real trading account.
New traders will appreciate educational tutorials, but these are not as comprehensive as the ones offered by other CFD trading platforms, like Pepperstone and Plus500.
Vantage doesn’t charge deposit or withdrawal fees. Like most CFD providers, it makes money through spreads and overnight fees, which are about on par with industry averages.
| Who Is Vantage Best For? | Why? |
|---|---|
| Serious CFD and forex traders that need all the bells and whistles for precision in trading. | Because Vantage focuses solely on CFDs and Forex trading, with a user experience that gives you direct access to industry-standard MT4 and MT5 tools. |
| Traders levelling up in their experience who want to learn about CFDs and forex. | Because of its targeted charting capabilities, the option to engage via simpler interfaces, and built-in access to forex news headlines and trade ideas. |
| Traders who want to buy and sell CFDs across a wide range of asset types. | Because Vantage offers a generous range of 44+ forex pairs as well as CFDs for shares, ETFs, bonds, crypto, commodities and indices. |
Cons.
Vantage customer service is limited, as you can only contact them via email and WhatsApp. They do not offer a telephone number for quick calls.
The strict focus on CFDs makes Vantage less than ideal for absolute beginners.
Novice traders should remember that leveraged investments are particularly risky; I have been trading for 2 years and rarely apply leverage.
Speaking of seasoned traders, the lack of MetaTrader 4 may turn them off, too. While the broker’s proprietary trading platform is excellent, I know that some people prefer the familiarity of MT4.
| Who Should Avoid Vantage? | Why? |
|---|---|
| Beginner investors with a low risk tolerance. | Because Vantage is unashamedly focused on CFDs, a notably risky investment product. |
| Investors focused on Australian and international shares. | Because you can’t use Vantage to buy underlying assets, only derivative contracts. |
| CFD traders who don’t have the time or patience for a steep learning curve. | Because Vantage doubles-down on technical trading features, a simpler app might be better if you don’t want to hone your CFD skills. |
Overall.
If you’re interested in Contracts for Difference (CFD) trading in Australia, Vantage is my top pick for a comprehensive and inexpensive online broker.
It compares favourably to other CFD trading platforms because it offers access to pro-level MetaTrader 4 and 5 (MT4, MT5) functionality and razor-sharp spreads.
Visit Vantage
| How Vantage Stacks Up | Score |
|---|---|
| Market Access | 4.0 |
| Fees | 4.0 |
| Trading Platform & App | 4.5 |
| Ease Of Use | 4.5 |
| Customer Service | 4.0 |
| Research & Analysis | 4.0 |
| OVERALL | 4.2 |
| Vantage Feature | Why Should You Care? |
|---|---|
| Low Fees You Can Benefit From | A competitive $1 commission per side and low variable spreads (When using Raw account). |
| Available Markets | Share CFDs are available across US, UK, European and Australian markets. |
| Available Crypto Markets | 40+ coins. |
| Available Forex Markets | 44+ currency pairs. |
| Support | Online help centre, email, phone and live chat. |
| Trading Platforms | Desktop and mobile apps. Mobile app offers around 80% of the desktop functionality. |
4. Tiger Brokers.
Good low-cost broker for intermediate ASX investors.
Tiger Brokers is an online stock broker that is regulated by ASIC. Originally created in 2014 to help international investors buy Chinese stocks, it has expanded operations into Australia, New Zealand, Singapore, the UK and others.
The brokerage offers a healthy range of investment products, including Australian and US stocks, ETFs, HK stocks, US options and futures.
Did You Know?
Chinese stocks are not easily accessible to Australian investors through Western platforms like eToro, Pepperstone and AvaTrade.
Pros.
Tiger Brokers offer very competitive fees compared with other Australian online brokers. These vary depending on the market and investment product, for example:
- 0.055% of trade value for ASX shares (minimum of AU$5.5 per trade).
- US$0.013 per US share (minimum of US$2 per order).
As an intermediate-level investor with moderate investment volumes, I appreciate that TigerBrokers doesn’t impose a minimum deposit amount (compared with $50 on eToro and $100 on Interactive Brokers) and no inactivity or maintenance fees.
This means surprise hidden costs don’t erode my comparatively modest gains. I pay my trading fees, and that’s it.
Like Interactive Brokers, Tiger Brokers lets you invest fractionally in US companies (while still earning dividends from them).
Its proprietary TigerTrade platform balances ease of use with sophistication quite well.
Novices will find the desktop platform a little intimidating at first because it presents a lot of information at once.
Intermediate and advanced traders will feel right at home among candlestick charts, company analysis tools, and customisable panels.
Limit, market, stop loss, and orders of stop loss limit price are available through the desktop and the mobile app.
Expert Tip.
TigerBrokers offers attractive sign-up perks as part of its strategy to penetrate the very competitive Australian market. If you open and fund your account with AU$500, you get US$50 of fractional shares at no cost.
A demo account with $100,000 virtual currency is available for people who want to test-drive the system.
Meanwhile, the recent addition of CHESS sponsorship on new accounts is a welcome feature. I’ve always had reservations about the brokerage’s old custodial model, and it’s nice to see it upgraded for 2024.
| Who Is Tiger Brokers Best For? | Why? |
|---|---|
| Investors with a smaller budget or moderate investment volumes, keen to create a balanced stock portfolio. | Because Tiger Brokers has competitive brokerage costs and no minimum deposit amount (compared to minimums of $50-$100 on similar platforms). |
| Investors at all experience levels looking to hold stocks medium to long-term. | Because the platform has no inactivity or ongoing maintenance fees. |
| Investors looking to diversify through US stocks. | Because Tiger Brokers makes it cost-effective to own ‘expensive’ big-name stocks through fractional US shares. |
Cons.
Tiger Brokers doesn’t support cryptocurrency, indices, CFDs and forex, making it more suited to investors rather than traders.
This is one of the main differences between Tiger Brokers and other investment platforms in this review.
Don’t bother with the community section of the TigerTraders app. Its content quality is quite thin because most users post to earn Tiger Coins.
I don’t love that Tiger Brokers’ learning resource centre is limited and could pass for a blog.
Well, it is actually a blog, filled with articles on random investment topics – and updated infrequently.
But Tiger Brokers’ biggest Achilles heel is its reputation among lawmakers.
While the online broker has made a huge effort to improve its image, I can’t ignore the fact that, throughout 2023, it has clashed with regulators on a number of issues.
Some of them were resolved (very publicly) in courts; if you’re interested, a quick Google search will reveal all.
| Who Should Avoid Tiger Brokers? | Why? |
|---|---|
| Stock investors who also want to trade across other assets. | Because the platform differs from many standard share trading apps in not supporting forex, CFDs, indices or crypto. |
| Beginners looking for tips and camaraderie through a shared community. | Because most people using its app post poor quality content simply to earn ‘Tiger Coins’. |
| Investors serious about high-level insights to guide their decisions. | Because Tiger Brokers interface strikes a balance between ease of use and advanced tools, without being exceptional at either. |
Overall.
Tiger Brokers is one of the best brokers in Australia for casual and active retail investors who want to invest in Australian, US and Hong Kong stocks.
Important!
The interface is sufficiently advanced without being clunky, and the ability to invest fractionally in the US market will appeal to many hobby investors.
That said, eToro is the more flexible all-round online broker with copy-trading features, while Interactive Brokers is better for advanced, algorithmic traders who want to trade equities, CFDs and forex on its excellent proprietary platforms.
✔ Excellent sign-up bonuses
✔ Intuitive mobile app and excellent desktop platform
✔ Very competitive fee structure
✘ Clashes with regulators
✘ No CFDs or other trading instruments
Visit Tiger Brokers
| How Tiger Brokers Stacks Up | Score |
|---|---|
| Market Access | 4.0 |
| Fees | 4.0 |
| Trading Platform & App | 4.0 |
| Ease Of Use | 4.5 |
| Customer Service | 4.0 |
| Research & Analysis | 4.0 |
| OVERALL | 4.1 |
| Tiger Feature | Why Should You Care? |
|---|---|
| Low Fees You Can Benefit From | 0.025% commission on buying/selling ASX stocks and ETFs (or minimum of AUD$6.45 per trade). For US stocks, the cost if USD$0.0099 per share (minimum of USD$1.99 per order). |
| Available Markets | Australian and US shares/ETFs, HK stocks, US options and futures. |
| Support | Web-based help centre, email and phone available 5 days a week during business hours. |
| Trading Platforms | Desktop and mobile apps for iOS and Android. |
5. Pearler.
Good CHESS-sponsored Australian brokerage.
Recently founded in 2018, Pearler is a next-generation trading platform that is specially targeted towards young people who are long-term HODL investors.
It offers investments in shares, funds, and ETFs. Pearler is mostly available as an Android or iOS app.
Pros.
Pearler specialises in “set and forget” investment portfolios for long-term investors. You can start any of these investment accounts while topping up the account periodically to build up your investment. Making it an ideal way of saving towards retirement or for your kids.
Pearler makes it easy to track your investment portfolio with everything in one place.
You can opt between manual investment or an auto-investment option that automatically purchases stocks for you with the aid of an impressive algorithm.
The algorithm can be modified using variables like risk tolerance, age, yearly income, and investment goals.
Pearler also offers a micro-investment plan that lets you invest little amounts of money, like say $5. You can model your micro-investments after eight portfolio templates.
- The micro-investment option is perfect for investing your spare change regularly.
You no longer have an excuse not to invest.
Pearler charges a brokerage fee of $6.50 when purchasing or selling shares. You are charged a monthly fee of $1.70 for one investment fund and $2.30 to hold multiple investment funds.
I suggest you take advantage of the minor $0.50 increase from $1.70 to hold multiple investment funds. It’s also a great way to diversify your investment portfolio and insure your capital.
I like that Pearler has zero transfer fees, inactivity or maintenance, or opening fees. However, foreigners (non-Australians) will be charged a whopping $200 to open an account.
There’s also the Pearler Exchange space, a niche social media space where you and other Pearler investors can exchange investment ideas and tips.
You can follow other people and browse their investment profiles to see their investment journey.
Cons.
Pearler does not have analysis charts for advanced traders to analyze their investments. The asset classes are also limited. What’s more, you can only invest in Australian and US shares.
Secondly, Pearler doesn’t give you access to financial news and other data to make important investment decisions.
You need advanced trading tools and expert research tools from outside the Pearler app.
Overall.
In a nutshell, Pearler is the perfect Australian online stock broker for young people looking into long-term investments. It is beginner-friendly, and it supports micro-investing.
It also has an easy-to-use app with a set-and-forget feature that is great for passive investors.
This brokerage is not a good fit for sophisticated investors because the tools are too limiting.
| How Pearler Stacks Up | Score |
|---|---|
| Market Access | 4.0 |
| Fees | 4.5 |
| Trading Platform & App | 4.5 |
| Ease Of Use | 4.5 |
| Customer Service | 4.0 |
| Research & Analysis | 3.5 |
| OVERALL | 4.2 |
6. Superhero.
Good low-cost broker with flat fees.
Superhero is a new-generation trading platform regulated by the Australian Securities and Investment Commission (ASIC). It offers a simple, easy-to-use desktop app and mobile trading app.
Superhero’s signup process is extremely easy, thus making it a good pick for newer investors.
Pros.
Superhero allows Australians to buy both Australian and US stocks listed on the NYSE and NASDAQ.
You can easily buy fractional shares of American companies like Nvidia, Tesla, and Alphabet without breaking the bank to meet their expensive share price. You can buy these shares in low-cost amounts of less than $500 anytime you wish to.
Superhero charges $0 brokerage fees on US shares but charges $5 on Australian shares (as well as $0 for ETFs). The flat brokerage fee remains the same regardless of the volume of trade. T
his is a fair amount to charge, considering that some Australian stock brokers charge $20 per trade.
I found it easy to signup on Superhero. All you need to do is to provide your contact and ID details. Following that, you can fund your Superhero account using a PayID bank transfer.
Typically, the whole process takes less than 5 minutes. It’s that smooth and hitch-free!
Cons.
The discrepancy in brokerage fees between US and Australian shares is worth discussing.
Also, Superhero doesn’t allow the purchase of Australian stocks in fractional units. You can only purchase fractional US shares.
Superhero’s asset picks are limited. Veteran investors who need to deal in other asset classes should opt for another brokerage platform.
The chart analysis functions are just too simplistic. I get that they are simplified for easy comprehension by amateur investors, but I wish there was an option to toggle the view between the simple charts and the advanced charts.
How simple are the charts? There are no price targets, buy ratings, or sell ratings.
Furthermore, you can’t get comprehensive financial or market data for the companies you are investing in on the platform.
Overall.
Superhero is a low-cost trading platform that is better suited to casual investors. It has a simple app and a straightforward sign-up process designed to attract newbie traders.
The oversimplified platform will not be suitable for expert traders. In addition, the platform may feel a bit limiting because users can only trade ETFs.
7. AvaTrade.
Good broker for forex & CFDs.
AvaTrade is an ASIC-regulated online broker with top-notch social trading features and Meta Trader included.
Even though it allows you to trade crypto indices, ETFs, commodities and stocks, its main focus is on forex and CFDs.
In other words, it’s best suited to Australian investors who want to build solid foreign exchange and CFD portfolios while dabbling in other trading instruments. Not the other way around.
Pros.
With 5 different trading platforms to choose from, AvaTrade is not short on options for traders who want to get serious.
Are two proprietary platforms, a full MetaTrader suite (MT4 and MT5) and two robo-suites (ZuluTrade and DupliTrade) and a mobile AvaTrade Go app enough for you?
Expert Tip.
Webtrader, one of AvaTrade’s proprietary offerings, stands out for ease of use – especially for beginners. If you’re new to trading, start there.
AvaProtect is a nifty feature that neither eToro nor Tiger Brokers offer. Think of it as a form of insurance against poor trading decisions.
Buy the cover, and AvaTrade will reimburse you for any losses you sustain on market orders during the coverage period.
AvaTrade offers tight spreads with great leverage and almost instant trade execution. This is great news for scalpers, as a 2-second delay is enough to lose out on a great entry.
Like eToro, AvaTrade has solid copy trading features that let you copy successful traders. You can ask questions and check their trading history before placing bets .. I mean, trades.
Speaking of newbies, AvaTrade has a world-class academy with 24 courses, 400 articles and videos, 150 lessons, a YouTube channel and 50 quizzes.
The academy is great and can be accessed on mobile and desktop. The courses are well-structured, and it’s clear that a lot of effort went into their design.
Finally, AvaTrade has a negative balance protection feature that ensures that you can never lose more than the balance you have in your account.
Cons.
Unlike Tiger Brokers, AvaTrade charges inactivity fees – $30 per quarter after 3 months of inactivity, plus a $100 administration fee after a year. Yep, “administration”.
- This makes it a poor choice for Australian investors who like to dip in and out of the market.
I find that withdrawals can sometimes be painfully slow, with my cash sometimes hitting the bank account 7 days after the request.
Expert Tip.
Keep in mind that novice-friendly Webtrader doesn’t offer a news portal or research functions. You have to get those from Meta Trader or external sources.
The biggest downside of AvaTrade, however, is its relatively narrow range of markets and products.
Compared with the large range available on eToro and the ungodly range available on Interactive Brokers, AvaTrade offers a, let’s say, curated selection.
- It’s not an issue if you plan to execute a tightly focused trading strategy, but if your style of trading relies on a lot of variety, consider Interactive Brokers instead.
Overall.
AvaTrade is an excellent online broker for beginner and intermediate traders who seek to build a solid baseline of skill in forex and CFD trading.
Reasonable spreads, novice and professional-grade platform options and social trading features make this a well-roounded, capable brokerage.
Its CFD and forex fees are about on par with the industry average, and its customer service is solid – responsive, competent and available through 3 channels.
AvaTrade does not have as many trading tools as institutional or expert traders would like, but I don’t feel that this is their target market.
✔ World-class trading academy
✔ Fast trading execution with tight spreads
✔ Balance protection to prevent negative balances
✘ No dedicated news portal
✘ No stop loss
Visit AvaTrade
8. IG.
Good all-round multi-asset online broker.
Founded in 1974, IG is a top-class online broker offering trades on forex, indices, equities, CFD, commodities, and options.
It has various features that make it a stock trading platform for professional and new traders.
Pros.
IG offers over 80 currency pairs with reasonable spreads that averaged 0.83 in 2021. IG offers trading through their online platform, MetaTrader 4, ProRealTime, and L2 Dealer.
You can access features like stops, limits, sell orders, and alerts on those platforms.
There is a handy API for advanced tech-savvy traders that want to automate their trades. The API trading feature works across all financial markets, including crypto and forex. You can link the API directly to your own platform or to IG’s ProRealTime platform.
IG also comes with a fantastic mobile app that works well for various functions as well as good charts, alerts, news headlines, signals and readings that aid trading on the move.
Setting up charts on IG’s mobile app was easy, with five distinct chart types, 20 drawing tools, and 30 technical indicators available. You can sync your charts from the desktop app to the mobile app. However, the syncing process isn’t exactly seamless, as trend lines do not sync.
IG also offers mobile trading through MetaTrader 4.
IG has a dedicated mobile app for beginner traders called IG Academy. IG academy offers various training courses, quizzes, videos, and interactive exercises to help you learn the nitty-gritty of trading.
- These training courses are also available on the desktop platform.
- Newbies also get a demo account with $20,000 of virtual funds.
This is 80% less than eToro’s $100,000 demo account.
IG’s demo account work across multiple assets and markets, including crypto, options, bonds, rates, shares, commodities, forex, and indices.
IG offers 24/7 customer support service, but they aren’t available from 7 AM to 5 PM AEST on Saturdays. I suppose this is due to a time zone issue. But I would prefer it if they were available 24/7.
Expert Tip.
The IG community feature is great for interacting with fellow traders and getting expert advice. I rate IG’s community better than Pearler’s Exchange space as the investors there are more experienced with several unconventional tips and strategies that you won’t find in Pearler Exchange.
Cons.
While IG’s mobile app is great, I do not enjoy the fact that it doesn’t have predetermined watchlists. You have to spend time scrunching your eyes and scrolling through IG’s massive offerings to find what you want.
Furthermore, IG doesn’t have eToro’s copy trading feature. I expect an advanced online broker like IG to have a proper copy trading platform that integrates the experienced traders in the community.
Overall.
IG is a superb Australian stockbroker with a solid array of forex trading pairs and options. It’s handy API trading would also come in handy for tech-savvy users.
9. CMC Markets.
Another decent multi-asset online broker.
Listed on the London Stock Exchange, CMC Markets is a UK-based online broker established in 1989. It also earns a spot on this list because it offers an abundance of learning resources and guides.
They offer low brokerage fees, competitive spreads, and low margins across commodity trades.
Pros.
CMC Markets‘ wide range of investment options include shares, indices, cryptocurrencies, options, ETFs, commodities, and forex.
Similar to Interactive Brokers, CMC Markets offers investors about four desktop platforms plus a mobile app.
There is the popular MetaTrader4 for CFD trading, Stockbroking Standard for international shares and ETFs, Stockbroking Pro for advanced traders who pay a $49 monthly access fee.
Lastly, Next Generation grants traders access to CMC Markets’ full suite of products.
It’s all a bit confusing, but it’s how they prefer to operate.
CMC Markets charges zero brokerage fees for online buy orders less than $1000. But you only get one free order per day.
Depending on which is greater, you will be charged for subsequent buy and sell orders at $11 or 0.10% of your order value.
CMC Markets definitely gets the teaching process right. They have an incredibly rich collection of educational resources and market data.
There is also a demo account for new traders.
The demo account is accessible even when you haven’t provided your full signup data. You only need to provide your email, phone number, and name. So you can typically try out CMC Markets before filling in your card details.
Cons.
CMC Markets phone trades incur a borderline ridiculous charge of $59.95 per order. You’ll also be charged $59.95 when placing orders for listed financial products outside Australia, Japan, the US, and the UK.
If that’s not bad enough, you’ll need an ANZ cash account to use CMC Markets.
Although you can use debit and credit cards to fund your CMC Markets account, you’ll be charged a percentage fee for every transaction.
CMC also charges a $15 inactivity fee after one year.
Overall.
CMC Markets is a respected, global player that offers an extensive range of tradable instruments (12,000+) and a strong suite of educational resources.
Need a reliable, all-rounder platform? This is a good contender.
Frequently Asked Questions About Online Brokers In Australia.
Many folks emailed me after reading this review, asking for more details.
What fees do Australian online brokers charge?
Fees are calculated in a variety of ways including percentages, flat rates and based on volume — which can make it harder to understand and compare costs.
Reasonable fees per buy/sell order vary from a minimum of around AUD$5-10.
Some brokers have a no-commission model, but beware that these platforms make money through fees charged on currency conversions, spreads when you apply leverage, and costs related to using your account (e.g., withdrawing money, inactivity).
Are online brokerages safe?
Thousands of Australians safely invest and trade every day using the reputable, established, and regulated share trading platforms compared in this article.
Reasonable fees per buy/sell order vary from a minimum of around AUD$5-10
If you’re keen to directly hold your shares for added protection in case of a broker’s insolvency, you might prefer a CHESS-sponsored broker compared to a broker with a custodial model.
Which broker is best for beginner Australian investors?
My pick is eToro – because it perfectly balances complexity and accessibility. Novice and casual investors get access to:
- Solid educational resources.
- Top-notch customer support.
- Tight spreads.
- Very good technical charts and financial news.
Which brokerage has the best mobile investment app?
The best online stock broker in Australia depends on your reasons for investing and what features you need the most in an investment app.
The best brokerage for CFD trading is Vantage, with a choice of MT4/5, Trading View and a proprietary app.
What is the cheapest trading platform in Australia?
If you need the cheapest trading platform for CFDs, go with Vantage. They charge zero monthly or brokerage fees and make money off your bid/ask spreads, which is pretty reasonable. Unfortunately, you can only trade CFDs on Plus500.
- Interactive Brokers is the cheapest for investors and traders with substantial ($300,000+) trading volumes.
- Investors and traders with less than $200,000 to invest will find eToro fees very competitive.
How do you start trading and investing in Australia?
You must purchase and sell stocks through an ASIC-registered online stock broker.
Opening the account is the first step. With the best brokers in Australia, this is a fairly seamless and painless experience that takes between 1-2 hours and 1-2 business days.
Account verification on the broker’s end is usually the most time-consuming part of this process. Make sure you submit all your identity documents during signup – this is likely to expedite the process.
What Are The Risks Of Investing In Shares?
When you buy shares from an online broker, you spend money without guarantee of a return.
You also accept the chance that you could lose all of your capital.
While Australian and international markets tend to add value over the long term (in a broad sense), individual stocks can be volatile.
Each company’s share price depends on a huge variety of macro, performance-based and consumer-led factors.
Important!
Even well-run companies can be overtaken by competitors or lose relevance due to changing trends.
What Is CHESS Sponsorship?
CHESS stands for Clearing House Electronic Subregister System, and it’s the software the Australian Securities Exchange (ASX) uses to manage and record a change of ownership in shares when they’re bought or sold.
Important!
When you use a CHESS-sponsored broker, you’ll have peace of mind that your shares are securely registered as belonging to you via ASX’s settlement system.
Your ownership is represented by a unique Holder Identification Number (HIN) you’ll receive from your broker.
9 Factors to Consider When Choosing The Best Online Broker In Australia.
Which features do you need, and which can you safely ignore?
1. Are the right asset classes available?
Before signing up with an online broker, check whether they offer the asset classes you plan to buy or trade. Do you:
- Wish to trade Australian stocks or securities?
- Plan to add cryptocurrency to your investment portfolio?
- Need access to CFDs, options, futures, indices, and commodities?
Many brokers specialise in a particular set of assets and instruments. For example, Commsec Pocket offers good ETF trading, while Plus500 offers superb CFD trading functions.
If you are interested in stocks, look for online share trading platforms registered with the Australian Securities Exchange and the Australian Stock Exchange.
If you plan to build a diverse portfolio across multiple assets, I suggest you choose eToro or Interactive Brokers, as the platforms allow you to pick from a huge range of bonds, stocks, options, mutual funds, and ETFs.
2. What unexpected features do you get?
The best online brokers in Australia offer perks like social trading, fractional trading, robo-trading and loss protection.
Others offer real-time market data and financial news complemented by advanced research tools and low pings for fast trade implementation.
3. What are the brokerage fees like?
You absolutely want to minimize trading fees and commissions. After all, your investments minus commissions are your gains.
But an obsession with finding a brokerage with the lowest commissions can be a fool’s errand. Opportunity costs are not part of your balance sheet, but are real.
For every minute you spend comparing stock platforms, you are not focusing on income-producing activities or not improving your ability to generate more of it later.
Rather than getting bogged in analysis paralysis for weeks, pick one of my recommended platforms and start investing. You’ll be much better off in net terms.
| Online Brokerage | Minimum Deposit | Inactivity Fees | Trading Fees | Focus |
|---|---|---|---|---|
| eToro | $50 | $10/month after 1 year | 1.5% currency conversion (both ways) | Stocks, ETFs, Crypto |
| Interactive Brokers | $100 | $0 | $6 per trade or 0.08% of trade value | Stocks, ETFs, Bonds, Funds, Indices, Commodities, Crypto, CFDs |
| Vantage | $50 | $0 | Starting with $1 spreads on the ECN account | Forex, CFDs |
| TigerBrokers | $0 | $0 | ASX stocks: 0.055% of trade value, min AUD$5.55 per trade. US stocks: US$0.013 per US share, min $USD2.00 per order | ASX, US & HK stocks and ETFs, US options |
4. Does the brokerage have a friendly interface?
A good share trading platform should have an intuitive user interface with a friendly user experience. Clunky, slow, glitchy software is not excusable in 2024.
The platform should be easy to navigate, with a search function to find assets quickly. Buttons should be responsive, and bugs should be absent.
5. Does the brokerage have CHESS sponsorship?
The best stock brokers in Australia come with CHESS sponsorship for Australian shares purchased on the platform.
CHESS (Clearing House Electronic Subregister System) is the system used by the Australian Stock Exchange to record, manage and share ownership.
CHESS-sponsored shares are easily verifiable and traceable to you, thus ensuring that you retain the ownership of your shares even if the online broker goes down.
You get a HIN (Holder Identification Number) that identifies you as a valid CHESS-sponsored shareholder with a broker.
All your CHESS-sponsored shares are represented by your HIN.
6. What are training resources like?
If you are a new trader, you want a trading platform with helpful resources and materials. You don’t want to get stuck at every point in time without quality references to help out.
The educational resources should be well outlined with a well-ordered learning curve.
7. Is customer support responsive enough?
I always check the responsiveness of the broker’s customer support service, rating them on response speed (ideally under 2 hours) and helpfulness (is the problem solved on first contact?)
Also, 24/7 support is much better than 24/5. Because Murphy’s law dictates that your problem will happen on the weekend.
The medium of communication also matters. Some online stock brokers have customer support that can only be accessible via email or chatbots. Ideally, look for one that offers a phone line in the Australian timezone.
8. Is account security military-grade?
The best online brokers in Australia guarantee the security of your assets and data.
These platforms must have two-factor authentication, SSL encryption, and other proper security features.
9. Any discount or bonus offers?
Who doesn’t like free things? I watch out for brokers that offer good account bonuses and discounts. Some brokers, like TigerBrokers, offer bonuses based on your initial deposit.
Bottom Line About The Best Online Brokers In Australia.
eToro is one of the best stock trading platforms in Australia – and my #1 pick for new to moderately experienced investors.
You will enjoy the ease of its social trading features and the ability to trade domestic and international stocks.
Steven
