eToro vs CommSec: Which Is The Best Platform For Aussie Investors?

CommSec will likely be a familiar name to anyone reading this article. CommBank, Australia’s largest bank, pushes this product onto its huge retail customer base.

eToro is likely to be more familiar to the younger, tech-savvy Aussie crowd.

Ironically, with 33.4 million global users, eToro is 10X bigger than CommSec.

Is this a simple case of choosing between the more boring, traditional, but seemingly stable incumbent versus a shiny, new, but potentially riskier challenger?

I wish it was that easy.

eToro vs CommSec: My Quick & Dirty Verdict.

Be honest.

Are you someone who has banked with CommBank for your whole life because your parents did, and their parents did, and their parents did?

Your account will be seamlessly integrated with your CBA banking app. You’ll feel that your money is “safe as houses”.

(Although with Albo’s recent tax “reforms”, that phrase has lost some of its meaning).

(Related: How Trading Platforms Deceive You With “Low” FX Fees).

But you can also expect all the usual pain points associated with a ‘Big 4’ bank:

And you’re still stuck with the need to choose your own stocks and EFTs.

eToro, in contrast, has a sleek platform with a trading app that gives you the option to outsource all the decision-making to expert investors – at no extra charge.

Above: This Reddit post summarises the #1 reason people still use CommSec.

It used to be expensive, but in the last few years has slashed its commissions and FX fees – making it one of the cheapest platforms in Australia, making it a clear winner when compared with CommSec.

Finally, while both platforms target a typically younger and less experienced investor, an expert trader can profit from eToro’s Pro Investor feature.

(Related: eToro vs Webull: Which Is Best?)

Think of this as you being a fund manager on the eToro platform, and taking a percentage (1.5%) of assets under your management.

Selection Of Assets

eToro is the clear winner here – you get access to far more tradable assets at your fingertips.

But I’d like to emphasise that this difference is far greater on paper than in reality – because most retail investors will never venture past NASDAQ, NYSE and the ASX.

When was the time you bought an equity on the Toronto or Bombay stock exchange? How many times have you bought commodities in the last year?

That’s right, never.

Trading Tools And Features.

eToro leans heavily on its copy trading features.

eToro also gives you access to Smart Portfolios, created by eToro’s professional analysts.

They allow you to gain exposure to a particular sector or theme (e.g., early-stage AI or healthcare).

But CommSec does have another party trick up its sleeve.

It will let you place the order without immediately committing money. You can either transfer funds within a business day, or pay later using credit.

Both platforms offer charting tools, plus company analysis and educational materials.

I’d say they’re on par here. CommSec shows insights from Morningstar and Goldman Sachs, on top of Level 2 data.

eToro sticks with Level 1 data feed, but gives you access to its pro-level Pro Charts and Trading Central tools once your equity exceeds US$5,000 and US$25,000, respectively.

(Related: 19 Best ETFs In Australia).

User Experience.

CommSec has improved its user experience in recent years, but it still lags eToro – massively. It is a clear pain point with users.

It feels more friendly and easy to get your head around.

You can access both eToro and CommSec via their website and Android/iOS apps (which contain almost all the same features as the desktop web platform).

Fees And Commissions (How They Make Their Money.)

The short answer is – eToro offers cheaper fees while offering you more features.

The long answer is: CommSec and eToro are roughly comparable if you’re depositing small-ish (sub $1,000) amounts on the ASX – with eToro being slightly cheaper.

This is because CommSec has a tiered commission system that penalises you for making larger trades:

Compared with eToro’s flat US$2 commission on stocks – and $0 on ETFs – this is a rip-off.

US stock trades get even more expensive on CommSec.

The exact amount you’ll pay will depend on whether you choose a standard or a Plus account.

Personally, I’d choose the International Shares Plus account every time – because the standard one doesn’t allow me to hold foreign currency, exposing me to currency risk – and increasing my FX fees.

The two examples below will illustrate why.

The Plus account will charge you US9.95 or 0.2% per side (whichever is greater) for the privilege of the added USD account flexibility.

Again, compared with eToro’s US$2 for stocks or $0 for ETFs, this is expensive.

Yes, on the surface, CBA’s 0.55% flat rate is cheaper than eToro’s 0.75%.

But – and this is a HUGE but – eToro’s FX fee can be eliminated or reduced to as low as 0.15% using at least three methods.

Security Measures.

Both companies are registered with most of the major financial regulators (CommSec via CommBank internationally), while CommBank is publicly traded on the Australian Stock Exchange, increasing the transparency around this company.

In addition, CommSec offers CHESS-sponsorship, which eToro does not.

Thanks to improved financial regulation, the days of a regulated broker running off with clients’ shares and funds are now highly unlikely.

Consequently, for accounts under $1 million this is likely a moot point. For accounts over $1 million, investors will likely be experienced enough to make this judgement for themselves.

Customer Support.

Customer support is the one area that lets CommSec down.

While it offers (slow) email support and an FAQ section, there is no live chat feature like you get with eToro.

Granted, eToro doesn’t let you chat with a human immediately.

It will first try to resolve your issue using Tori, its AI agent. It’s pretty useless for everything except the most basic queries – but you can force it to hand off to a human by simply saying “speak with a human”.

Unfortunately, the competence of the said human is hit and miss.

You get a dedicated account manager who you can talk with via WhatsApp or email – and these guys are rockstars. Smart, quick and eager to help, they make your typical “support” person look like a victim of a stroke.

Exploring The Negative Reviews.

CommSec

Overall, the main complaints here are much the same as you would expect to see with CommBank.

Most relate to customer service; however, the relatively new international site does come in for a lot of criticism as well and is indicative of the generally sub-par user experience offered.

That said, this will unlikely be a surprise to anyone considering CommSec, and it is far from unusable.

eToro

Most complaints about eToro are about deposits and withdrawals.

As eToro is an online broker and not a subsidiary of a bank (like CommSec), users need to wait a few days for funds to clear into their trading account – and back into their bank account.

For whatever reason, you’ve been flagged as “high risk”, and eToro is holding your money while it performs additional checks.

Both CommSec and eToro have to obey strict KYC obligations, which means you will be asked to provide identification to sign up – and sometimes additional information to withdraw funds.

If delaying your withdrawal by a day means saving you from a thief stealing your entire portfolio, you’re getting a great deal.

Steven