What are the best CHESS-sponsored brokers?

CHESS-sponsored shares mean you can say "checked, mate" to your stock portfolio.

What is CHESS sponsorship?

The Clearing House Electronic Subregister System (CHESS) is used by the Australian Securities Exchange (ASX) to keep a record of who owns what shares.

When you buy shares with a CHESS-sponsored broker, those shares are recorded in your name directly with the ASX.

In Australia, you have the choice of going with a CHESS-sponsored or custodian model platform.

How we selected the best CHESS-sponsored brokers

We use our proprietary algorithm in order to give every share trading platform a score.

Set up by Finder's data scientists and investment experts, our algorithm takes into account broker fees, trading tools, educational resources and the list of available stock markets on each platform.

Our methodology to select the best CHESS-sponsored brokers rated platforms on the following features:

  • Availability of ASX CHESS-sponsored equities (Y/N filter)
  • Availability of shares, ETFs, IPOs and mFunds
  • Order types offered including market order, stop loss and other conditional orders
  • Research tools including broker ratings, PE ratios, dividend tracking and tax reporting features
  • Brokerage fees for Australian shares and ETFs
  • Platform fees including withdrawal fees and inactivity fees
  • Availability on desktop and mobile
  • Average user rating
Important: Bear in mind, there's no trading platform that's best for everyone as all our needs are different. What's best for you might not be best for someone else. However we hope this guide can help you to narrow down your options, regardless of your trading style or level of experience. If you're looking for more details, see our full methodology here.

The best CHESS-sponsored broker:

CMC Invest logo
5/5 ★★★★★
Compare Read review
Capital at risk
$0 brokerage for global stocks
$0 brokerage on ASX buy orders
Sophisticated research tools
Our top pick for a CHESS-sponsored broker is CMC Invest. It was named the best Overall and Best for Australian Equities in the most recent Finder Share Trading Platform Awards. CMC offers clients a range of financial options for less. For those looking to trade CHESS-sponsored shares, they offer free brokerage on trades up to $1,000 (on the first buy order on each security, each day).
  • $0 brokerage on ASX trades under $1,000.
  • Comprehensive analysis tools for Australian equities.
  • Access the Cboe and SSX exchanges.
  • Hefty phone brokerage fees
  • Higher fees if you trade in some countries.
Brokerage fees:
AU stocks: $0 brokerage (for buy orders up to $1,000) and $11 or 0.10% (whichever is greater) for all other buy and sell orders.
US stocks: US$0
UK stocks: £0

ETF brokerage fees:
AU ETFs: $0 brokerage for trades up to $1,000 (applied to the first buy order per ETF per day). $11 fee for trades up to $10,000. $15 fee for trades equal to or greater than $15,000.
US ETFs: US$0

Options:
ASX: $33/contract
US: Not available
Other markets available: Details here

Inactivity fee: $0

Currency conversion fee: 0.60% of trade value

Other top CHESS-sponsored brokers:

Tiger Brokers logo
4/5 ★★★★★
Go to site Read review
Capital at risk
Cheaply invest in US, HK and AU shares
Easy access to international trading
Low-cost options trading
Tiger Brokers offers competitive brokerage on CHESS-sponsored shares along with an easy-to-use mobile app, no minimum deposits, trading tools and even a high interest savings account.
  • Low brokerage fees
  • Free market data
  • Quick sign-up
  • Limited educational resources
Brokerage fees:
AU stocks: $3 per trade
US stocks: US$2
UK stocks: Not available
Other markets available: Details here

ETF brokerage fees:
AU stocks: $3 per trade
US stocks: US$2
UK stocks: Not available
Other markets available: Details here

Options:
ASX: Not available
US: Fixed Brokerage Plan
• US$3 for up to 4 contracts
• US$0.75 per contract for 5 or more contracts

Tiered Brokerage Plan (Monthly Contract Volume)
• US$0.90 per contract for the first 50 contracts
• US$0.75 per contract for the 51st–100th contract
• US$0.55 per contract for the 101st–300th contract
• US$0.50 per contract for the 301st–500th contract
• US$0.45 per contract for the 501st–1,000th contract
• US$0.40 per contract for the 1,001st–10,000th contract
• US$0.35 per contract for the 10,001st–50,000th contract
• US$0.25 per contract for the 50,001st–100,000th contract
• US$0.15 per contract for 100,001 or more contracts

Inactivity fee: $0

Currency conversion fee: 55 pips

Stake Share Trading logo
4/5 ★★★★★
Compare Read review
Capital at risk
$3 brokerage fee per trade
No monthly fees for basic account
Buy and sell US stocks and ETFs
Stake is one of the cheapest brokers on the market for those investing in ASX CHESS stocks and ETFs, charging just $3 brokerage per trade. As such, it's no surprise it makes our list. Better still, if you refer 3 friends, you can actually get free brokerage on ASX trades for a year.
  • User-friendly options
  • Cheap brokerage
  • Refer-a-friend bonus
  • Offers both ASX and US stocks
  • Having to pay for advanced tools through Stake Black
  • Fewer features than others
Brokerage fees:
AU stocks: $3 (Up to and including $30,000); 0.01% (Over $30,000)
US stocks: US$3 (Up to and including $30,000); 0.01% (Over $30,000)
Other markets: Details here

ETF brokerage fees:
AU ETFs: $3
US ETFs: US$3

Inactivity fee: $0

Currency conversion fee: 70 pips (US$0.70 for every AUD$100 exchanged)

HSBC Online Share Trading logo
3/5 ★★★★★
Compare Read review
Capital at risk
Quality research tools
CHESS-sponsored stocks
mFunds
HSBC Invest offers a high quality trading platform for CHESS sponsored shares with plenty of research tools to keep you interested, including broker ratings, dividend search tools, technical analysis charts and a news feed.
  • Offers ASX stocks, ETFs and mFunds, ASX options available, High quality research tools
  • No global stocks, Brokerage fees higher than others, No fractional stocks
Brokerage fee per trade:
AU stocks: $19.95 per trade (up to $20,000); 0.11% for trades over $20,000
US stocks: Not available
UK stocks: Not available
Options:
ASX: $30
US: Not available
Inactivity fee: $0

Webull logo
4/5 ★★★★★
Compare Read review
Capital at risk
Advanced technical tools
ASX and global stocks
US options trading
Webull is a low cost, easy-to-use app that lets you trade CHESS-sponsored ASX stocks, as well as US and Asian stocks, and offers $0 on ETFs.
  • $0 ETF brokerage
  • Low brokerage on ASX shares
  • Fractional shares
  • Limited order types
Brokerage fee per trade:
AU stocks: $0.0003 per trade value (min $4.90)
US stocks: US$0.00025 per trade value
UK stocks: Not available
Other markets available: Details here

ETF brokerage fees:
AU stocks: $0
US stocks: US$0
UK stocks: Not available
Other markets available: Details here

Options:
ASX: Not available
US: US$0.50

Inactivity fee: $0

Currency conversion fee: 50 bps of trade value

CommSec Share Trading Account logo
4/5 ★★★★★
Compare Read review
Capital at risk
Research tools available
Australian shares from $5 per trade
Get stock analysis and ratings
CommSec is arguably the best-known share trading platform in Australia. It is the benchmark when it comes to a number of features, including educational resources, technical analysis tools, built-in broker recommendations and, of course, CHESS-sponsored shares.
  • Strong news and research ideas
  • User-friendly, especially for mobile
  • Data and monitoring tools
  • No inactivity fees on Australian holdings
  • Not the cheapest broker around for global stocks
  • No live chat support
Brokerage fee per trade:
AU stocks: $5.00 (up to $1,000 trade value); $10.00 (over $1,000 up to $3,000); $19.95 (over $3,000 up to $10,000); $29.95 (over $10,000 up to $25,000); 0.12% (over $25,000)
US stocks: US$5 for trades up to USD$5,000; USD$29.95 for trades up to USD$10,000; 0.31% for trades above USD$10,000
USD$39.95 or 0.40% (whichever is greater)
Inactivity fee: $0
Currency conversion fee: 0.55% of trade value

What are HIN and CHESS?

When you sign up with a CHESS-sponsored broker, the ASX will issue a Holder Identification Number (HIN) that is then used whenever you buy shares through that broker.

If you decide to change brokers, this HIN will follow you around as long as the next broker you join is also CHESS sponsored.

If you want to know your HIN, it will be visible on your CHESS statement. HINs start with the letter X, following by a sequence of 10 numbers.

CHESS vs custodian share trading model

When you sign up to a broker, they'll either use a CHESS-sponsored or custodian model.

A custodian model basically means the custodian is the legal owner of the shares. This means that the broker owns the shares, not you. You are still a beneficial owner though, meaning you get the same dividends and capital gains. You just don't have the voting rights of CHESS shareholders.

The upside for this model is it is usually cheaper on fees and lets you buy and sell Australian and global shares from the same trading account.

The downside of a custodian model is that you have less direct control over your investment and less access to your holdings.

Is CHESS getting replaced?

The ASX has long planned to replace CHESS with a new clearing system. CHESS was first introduced in 1994 and has understandably struggled to adapt to the increasing demands of the modern stock market.

This replacement was slated to launch in 2021, following an aborted attempt to use blockchain technology to power the new system.

In November 2024, the ASX projected the cost of phase one (known as "Release 1") of its new CHESS program to cost up to $125 million, and was still targeting a release in 2026.

The ASX also announced that it expected the second phase, called "Release 2", to cost up to $320 million, with a target date of 2029.1

Pros and cons of CHESS-sponsored shares

Pros

There are a few key benefits to going with a CHESS-sponsored trading account:

  • Direct ownership. With a CHESS-sponsored system lodged with the ASX, you're the legal owner of the shares because of your HIN.Your broker or trading platform simply acts as a middleman between you and the exchange. This means, if the broker happens to go under, your share ownership and the holdings themselves won't be impacted. You can simply shift your holdings over to another platform to continue trading.
  • Voting rights on shares. Another handy reason to go with CHESS-sponsored shares is that you'll be offered voting rights. As a company owner, you have the right to attend general meetings and to make decisions on directors' remunerations and other key factors that drive business performance. On the other hand, custodial brokers decide whether they wish to pass voting rights onto you or not.
  • Easier to switch brokers. If you decide to switch brokers, having your shares with a HIN can be incredibly handy. It typically means you'll just need to complete a 2-page online form and your shares will be sent, usually within a week. A custodian broker usually takes a little bit longer to sort out.

Cons

There are also some potentials downsides to choosing a CHESS-sponsored model;

  • Doesn't support international markets. The CHESS model is exclusive to the Australian stock market. If you're looking to also buy global shares, you won't be able to add them to your CHESS account. In fact, most of the world's largest share markets, including the US, run off a custodial model. However, it's also worth keeping in mind that any ASX-listed ETFs that track global shares will be CHESS-compatible.
  • Potentially higher fees. This will depend on which platform you use, but custodial models often have lower fees than CHESS-sponsored models. These days, there are now quite a few CHESS-sponsored platforms that offer cheap or even $0 brokerage.
  • Can't buy fractional shares. Under a custodian share model, you can buy and sell fractions of shares, rather than a whole share. This can help you start out sooner especially when you're buying stocks that are hundreds of dollars per share, but isn't possible under the CHESS model. When buying CHESS-sponsored ASX shares, you'll also need to initially buy a minimum of $500 worth of shares.
  • Delayed Given you aren't the holder of the shares, the custodian broker will do the administration on your behalf.

Want to compare all your options?

Here's a comparison of CHESS and non-CHESS trading platforms available in Australia:

Product AUFST Standard brokerage fee Inactivity fee Asset class
eToro logo
US$2
US$10 per month if there’s been no log-in for 12 months
ASX shares, Global shares, US shares, ETFs
CFD service. Capital at risk.
Trade stocks, commodities and currencies from the one account and get access to social trading.
Tiger Brokers
Finder AwardExclusive
Tiger Brokers logo
$3
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Finder exclusive: Get 4 brokerage-free trades and pay no FX fees on the first $2,000 you exchange each month + plus get an $80 cash voucher when you deposit up to $2,000. T&Cs apply.
Trade US, Asian and CHESS-sponsored ASX stocks and US options.
Moomoo logo
$3
$0
ASX shares, Global shares, Options trading, US shares, ETFs
Finder exclusive: Unlock up to AUD$4,000 AND US$4,000 in $0 brokerage over 60 days. T&Cs apply.
Trade US, Asian and CHESS-sponsored ASX stocks and get access to social trading.
Superhero logo
$2
$0
ASX shares, US shares, ETFs
Sign up with code ‘finder25’ and get US$10 of Nvidia stock when you fund your account with $100 or more within 30 days. T&Cs apply.
Enjoy US$2 brokerage (other fees may apply) on US stocks and buying ETFs as well as $2 fee to trade Australian shares up to $20,000.
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How much you can save by picking the right platform

Finder research found that the average share trader could save approximately $1,048 in brokerage fees a year by switching to a more suitable online broker (calculated on 7 trades per month of $1,000). You might even save money by having more than 1 platform, especially if you are investing in both Australia and internationally.

Share trading updates: February 2025

  • February: The US stock market dropped on news of president Donald Trump's trade tariffs on Canada and Mexico, but rallied when the countries agreed to delay their introduction.
  • January: The S&P 500 started the new year trading below 6,000 points ahead of the inauguration of President-elect Trump.
  • December: More records tumble as the S&P 500 hits 6,000 points and the Nasdaq-100 hits 21,000 points for the first time.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances and obtain your own advice before making any trades.

Frequently asked questions

To make sure you get accurate and helpful information, this guide has been edited by David Gregory as part of our fact-checking process.
Thomas Stelzer's headshot
Written by

Journalist

Tom Stelzer is a journalist with 6 years of experience covering personal finance, specialising in investment and cryptocurrency. With a Master of Media Arts and Production and a Bachelor of Communications in Journalism from the University of Technology Sydney, Tom provides expert analysis on digital assets and market trends, helping readers navigate the fast-evolving world of finance. See full bio

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2 Responses

    Default Gravatar
    SaeedAugust 10, 2024

    CMC invest fee is incorrect. It is $0 for AUS stocks only one buys below $1000, per security, per day

      AvatarFinder
      ThomasSeptember 13, 2024Finder

      Hi Saeed,

      Thanks for your comment. You’re correct, CMC offers $0 brokerage on trades up to $1,000, per security, per day. We do highlight this in our guide, but we will add more detail to make it clearer to readers that this is the case.

      Thanks

      Tom

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