Last updated: November 28th, 2023
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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 11 best online brokers in Australia, highlighting my top picks for November 2023.
1. eToro.
Best overall 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 forex, Australian and US stocks, cryptocurrencies, commodities, ETFs, and CFDs on most of them.
(Related: eToro Review: Pros, Cons, Fees & Verdict).
Pros.
Thanks to e-Toro‘s user-friendly interface, intuitive search menu and fast deposit process, you can sign up and be ready to invest in a few minutes.
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.
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.
Cons.
Let’s start with the elephant in the room.
While eToro is quick to point out its 0% commissions on stocks, and zero management, rollover, and ticket fees, it will charge you withdrawal, currency conversion, CFD and inactivity fees.
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.
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 November 2023.
You’re welcome.
Zero-commission brokers make their money via spreads, and eToro is no different. These apply only if you trade with leverage, and are higher than the rates you’ll get on a dedicated CFD trading platform.
Oh, and eToro charges a 1% commission on traded cryptocurrency – if that’s your thing in 2023.
Relative to dedicated crypto exchanges, where you can get commissions of less than 30 pips, this is quite expensive.
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.
Overall.
eToro is a top-notch broker best 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.
Spreads on CFDs are on the expensive side but are tolerable if you have a multi-asset portfolio balanced by real shares and ETFs (you won’t pay any commissions on those).
While the currency conversion fee is annoying, you can dodge or deduce it using the methods I described above.
✔ Easy-to-use, clean user interface
✔ Superb copy trading features
✔ Fantastic range of assets and derivatives
✘ Not for active day traders
✘ Watch out for currency conversion and spread fees
eToro Service ARSN 637 489 466 promoted by eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Capital at risk. See PDS and TMD. Zero commission does not apply to short or leveraged positions. Zero commission means that no broker fee has been charged when opening or closing the position. Limited stock exchanges only.
| 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 |
2. Webull Australia.
Best low-cost online broker in Australia.
Webull is a low-fee online broker offering shares from US, ASX and emerging Asian markets, as well as US options.
It’s regulated by ASIC in Australia as well as SEC, FINRA and SIPC in the United States.
It lacks access to a few asset classes but makes up for it with comprehensive trading tools, rock-bottom fees and a generous ($200 of free shares) sign-on bonus.
Pros.
Webull is one of the few low-cost brokers in Australia that allow you to trade CHESS-sponsored shares. You get an individual HIN number for your trades, and this is the key reason Webull edged out the next best low-cost broker on this list – Tiger Brokers.
You’ll find a very good range of trading assets – if you plan to stick to Australian and international equities as well as ETFs and options. You get:
- Australian stocks (ASX and Cboe).
- US stocks.
- Australian ETFs.
- US ETFs.
- US Options.
- Hong Kong Stocks.
- Chinese A-Shares.
Fees are some of the lowest fees you’ll see in the industry. When buying Australian stocks, you’ll pay 0.0003 x trade value, with a $4.9 minimum.
Expert Tip.
In practical terms, you’ll pay $4.9 on trades of up to about $16330. Beyond that, the pro rata rate takes over. A $25,000 trade, for example, will cost you $7.5, which is dirt cheap.
Fees for the US Market purchases are a bit more complicated but just as competitive:
- Buy orders on stocks and ETFs attract a slightly lower rate of 0.00025 x trade volume (i.e., you’ll pay US$2.5 to buy $10,000 of shares).
- Sell orders trigger a couple of minor SEC and FINRA fees on top.
Together, they add up to a cumulative sell commission of 0.00043 x trade volume (i.e., you’ll pay US$4.3 to sell $10,000 of US shares).
Commissions in Hong Kong And Chinese markets are the least competitive.
Even though the rate matches Australia’s at 0.0003 x trade volume, the transactions trigger a (relatively) hefty $15 minimum flagfall.
Important!
To sweeten the deal even more, Webull seduces you with zero commissions for the first 30 days, meaning you can make your initial deposit and create a portfolio without paying any fees eating into your balance. Nice.
Cons.
Unlike eToro, Webull doesn’t offer any copy or social trading features. You are entirely on your own.
Margin lending is available, and allows you to buy assets with borrowed funds.
Besides, if you’re serious enough to trade on margin, you’re better off with Interactive Brokers. It offers a better rate (between 5.6 and 6.6%) and has a more sophisticated set of trading tools.
Webull offers an “Investor Education Centre”, but the educational materials are limited to blogs that cover basic terms and strategies.
I don’t think it’s a huge issue as:
- Most brokers make their educational materials publicly available (nothing stops you from trading on Webull while browsing another platform’s educational content ).
- I don’t recommend that you rely on brokers for investor education. You do realise that they make more money when you lose money, right? Your interests are not aligned.
Important!
I’m not allowed to provide investing advice, but if you want to learn, comment below. I’ll email you details of educators I trust.
Overall.
Webull Australia is an excellent online brokerage with a user-friendly interface, comprehensive research tools and low commissions.
It’s the best brokerage for medium and long-term share, ETF and options investors who don’t want fees to eat into their balances.
Beyond that, the $4.9-ish commission per side is one of the lowest in Australia.
People who don’t have a ton of money to invest will appreciate that it has no minimum deposit requirements.
Unfortunately, you don’t get bells and whistles like copy and social trading features or access to leverage. If those are non-negotiable, eToro is still the best option – but you will pay higher fees.
Important!
Until 15th November only, Webull Australia is offering a signup bonus.
Sign up as a new user and deposit any amount to claim 10 free US shares (worth up to $100). Hold them for 30 days to get another 10 shares (worth up to $100).
That’s $200 worth of free shares to make a deposit – but only if you sign up using the links on this page. Definitely a deal worth considering.
✔ Trade ASX, US and HK stocks
✔ Very low commissions with first 30 days free
✔ CHESS sponsorship
✘ No copy trading or social trading features
✘ No leveraged trading
| How Webull Stacks Up | Score |
|---|---|
| Market Access | 4.0 |
| Fees | 5.0 |
| Trading Platform & App | 4.5 |
| Ease Of Use | 5.0 |
| Customer Service | 4.5 |
| Research & Analysis | 4.0 |
| OVERALL | 4.5 |
3. 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).
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.
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!
Cons.
Unfortunately, you miss out on e-Toro-style social trading features. Interactive Advisors, the robo-advisor affiliate of Interactive Brokers, 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 of Interactive Brokers Australia.
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.
Overall.
Interactive Brokers is a firmly established online broker for beginner, intermediate and advanced traders looking for an excellent range of investment options.
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
| 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 |
4. Plus500.
Best platform in Australia for trading CFDs.
CFD Service. Your capital is at risk.
Plus500 is a CFD trading platform that was established in 2008. Regulated in Australia by ASIC, it offers trading on CFDs across forex, commodities, crypto, shares, and ETFs.
Pros.
Plus500 specialises in trading CFDs, and it does so very well.
You can trade over 2800 instruments via its WebTrader platform while analysing your trades and seeing what other traders are doing.
To help you trade while on the move, Plus500 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.
Plus500 has a free demo account for those looking to hone their trading skills before beginning trading with an actual account.
Plus500 doesn’t charge deposit or withdrawal fees. Like most CFD provides, it makes money through spreads and overnight fees, and these are about on par with industry averages.
Cons.
Plus500 charges an inactivity fee for non-active traders, and you avoid it by logging into the platform once every 3 months.
Plus500 customer service is limited, as you can only contact them via email and WhatsApp. They do not offer a telephone number for quick calls.
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.
Overall.
Plus500 is a great online CFD trading platform with an easy-to-use, friendly interface and an intuitive mobile app.
It’s best for beginner to intermediate Australian investors and traders who want to trade CFDs on global markets.
| How Plus500 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 |
5. 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:
- Australian stocks and ETF: 0.025% (minimum AUD$6.45 per order).
- US stocks: USD$0.0099 per share (minimum USD$1.99 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.
Like Interactive Brokers, Tiger Brokers lets you invest fractionally in US companies (while still earning dividends from them). Fractional shares on ASX stocks are (sadly) not available.
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.
Limit, market, stop loss, and orders of stop loss limit price are available through the desktop and the mobile app.
A demo account with $100,000 virtual currency is available for people who want to test-drive the system.
Expert Tip.
TigerBrokers offers attractive sign-up perks as part of its strategy to penetrate the very competitive Australian market. As of October 2023, you get $50-$90 of fractional shares at no cost to you and a 3-month moratorium on all brokerage fees.
Cons.
Tiger Brokers doesn’t support cryptocurrency, indices, CFDs and forex, making it more suited to investors rather than traders.
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.
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.
Its 3-month zero fee signup bonus is extremely generous, 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-rounder with copy-trading features, while Plus500 and Interactive Brokers are better for people who want to trade CFDs and forex on their excellent proprietary platforms.
✔ Excellent sign-up bonuses
✔ Intuitive mobile app and excellent desktop platform
✔ Very competitive fee structure
✘ Fractional shares only in the US market
✘ No CFDs or other trading instruments
| 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 |
6. Commsec Pocket.
Good micro-investing option for CBA loyalists.
Commsec Pocket is the beginner-friendly version of Commsec that allows newbies to invest in ETFs (exchange-traded funds).
ETFs include a diverse array of shares and investment options from multiple companies as opposed to purchasing shares from a single company.
Pros.
Commsec Pocket allows you to invest with as little as $50 in ETFs. It is simple and very easy to use. Before investing more money, you can easily play around with $50 and see how well it goes.
You can choose between the one-off or recurring “regular mode” investment method.
Commsec Pocket grants you access to seven specialized ETF options including the Aussie Top 200, Global 100, Tech Savvy, Aussie Dividends, Health Wise, and Emerging Markets.
- This impressive selection ensures that you will find something that suits your investment standards.
Commsec Pocket ensures that you do not pay the $500 minimum investment amount associated with Commsec. So, if you like Commsec and want something cheaper, Commsec Pocket is perfect.
Commsec Pocket also has cheaper trading fees compared to Commsec. Commsec Pocket charges $2 for trades up to $1000, while Commsec charges $10 for trades up to $1000.
Cons.
Commsec Pocket is too limited. You can only trade ETFs (exchange-traded funds) with it. But it is a decent portion for someone starting out and looking to build their asset collection while learning.
I’m not too fond of the restrictive trade signals and options associated with Commsec Pocket. I like to know the nitty-gritty of everything involved when it comes to my money.
The $2 fee on the $5o minimum trade translates to about a 4% trading fee. This is quite high compared to what is similarly obtainable on Commsec’s main investment platform and others.
If you don’t have sufficient funds to execute a trade when your account is debited, you will be charged a $10 late settlement fee. The $10 late settlement fee is large and adds up on a $50 investment.
Overall.
Commsec Pocket is the simplified version of the Commsec brokerage targeted at beginners. It allows users to trade and invest in ETFs from different companies.
Although the Commonwealth Bank owns it, it is open to non-customers with a sign-up process that takes 5 minutes.
The brokerage has high trading fees which is a big drawback for most traders. In addition, it will feel oversimplified for professional traders.
| How Commec Pocket Stacks Up | Score |
|---|---|
| Market Access | 4.0 |
| Fees | 3.0 |
| Trading Platform & App | 4.0 |
| Ease Of Use | 5.0 |
| Customer Service | 3.5 |
| Research & Analysis | 3.5 |
| OVERALL | 3.8 |
7. 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.
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 that 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.
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 has no 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 that you need to make important investment decisions. You need to get 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 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 |
8. 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
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.
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.
9. 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.
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.
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.
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
10. 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.
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.
11. CMC Markets.
Another decent multi-asset online broker.
Listed on the London Stock Exchange, CMC Markets is a UK-based online broker that was established in 1989. With an abundance of learning resources and guides, it also earns a spot on this list.
They offer low brokerage fees, competitive spreads, and low margins across commodity trades.
Pros.
Like eToro, 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.
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.
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.
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 good option for many traders. If they can get past the confusing four desktop platforms. In addition, their rich learning materials will help make you a better trader.
Frequently Asked Questions About Online Brokers In Australia.
Many folks emailed me after reading this review, asking for more details.
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 overall is eToro, but the best for new investors is Pearler. The best for CFD trades is Plus500, while the best mobile trading investment app is Commsec Pocket.
What is the cheapest trading platform in Australia?
Go for Plus500 if you need the cheapest trading platform for CFDs. 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 $300,000 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.
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.
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?
A lot of brokers specialise in a particular set of assets and instruments. For example, Commsec Pocket offers good ETF trading, while Plus500 offers superb CFDs 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 keep trading fees and commissions to a minimum. 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.
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.
| CFD Trading Platform | Minimum Deposit | Inactivity Fees | Trading Fees | Focus |
|---|---|---|---|---|
| eToro | $50 | $10/month after 1 year | 0.5% currency conversion (both ways) | Stocks, ETFs, Commodities, Crypto, CFDs |
| Interactive Brokers | $100 | $0 | $6 per trade or 0.08% of trade value | Stocks, ETFs, Bonds, Funds, Indices, Commodities, Crypto, CFDs |
| AvaTrade | $100 | $10/month after 1 year, plus $100/year admin fee | 0.9 pips on forex or 0.13% on equities | Forex, CFDs, some stocks and ETFs |
| TigerBrokers | $0 | $0 | ASX stocks: 0.025% of trade value, min AUD$6.49 per trade. US stocks: USD$0.0099 per share, min $USD1.99 per order | ASX, US & HK stocks and ETFs, US options |
4. Does the share trading platform 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 2023.
The platform should be easy to navigate with a search function to easily find assets. 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-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?)
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
I have to agree with you – eToro is the best multi-asset copy-trading platform around. It’s not the cheapest, but the copy trading features save you a lot of time.
Yes Jacqui, eToro’s copy trading option is great if you don’t plan to spend years learning fundamental and technical analysis (that’s most of us).
What does CFD stand for?
It stands for “Contracts For Difference”, meaning you never own the underlying asset, but will gain or lose capital when that asset’s price moves.