Important: If you're looking for more details, see our full methodology here.
What are the best CHESS-sponsored brokers?
CHESS-sponsored shares mean you can say "checked, mate" to your stock portfolio.
Key takeaways
- CHESS sponsorship means direct share ownership with the ASX, giving you voting rights and security if your broker fails.
- Some CHESS-sponsored brokers like CMC Invest offer $0 brokerage on ASX trades up to $1,000 daily.
- Choosing the right platform could save average traders around $1,048 annually in brokerage fees.
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.
Best CHESS sponsored share trading platforms in 2026
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
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
- 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
- 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.
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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: April 2026
Gold and silver prices are continuing to soar, sending ASX gold and silver stocks to new record highs. Gold heavyweights Northern Star Resources (ASX:NST) is up 36% in the last 6 months, Evolution Mining (ASX:EVN) has risen 54% and Newmont Corporation (ASX:NEM) is up over 70%. Meanwhile silver stocks Andean Silver Ltd (ASX:ASL) and Silver Mines Ltd (SVL) have rocketed over 90%.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options, digital asset 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, cryptocurrency 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.
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CMC invest fee is incorrect. It is $0 for AUS stocks only one buys below $1000, per security, per day
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