CMC Invest was rated our best low-cost broker in Finder's latest Share Trading Awards because of its $0.00 brokerage offer, whether you're an active or passive trader of global or local stocks.
In terms of the cheapest CHESS-sponsored trades, CMC offers $0 brokerage for ASX buy orders of $1,000 or less (per equity, per day), Tiger Brokers now offers $3.00 brokerage and Stake and moomoo are also competitive at $3 per trade.
If you don't care about CHESS-sponsored brokers, Betashares Direct and IG now offer $0 brokerage on a range of ASX stocks, Superhero charges $2.00 brokerage on trades, while eToro offers US$2.00 brokerage.
When it comes to trading global and US stocks and ETFs, there are several brokers in Australia with a $0 brokerage offering on some international stocks, including CMC Invest, IG and Bendigo Invest Direct. Webull charges $0.00 or less for US equities trades (up to US$1,000), Interactive Brokers is US$0.0035 cents per US share, while moomoo charge US$0.99.
However, brokerage fees on global shares is just one part of the equation, as you'll need to pay a currency conversion fee on every buy and sell order. The brokers with the lowest currency conversion fees are Interactive Brokers (0.03%, min $3), Totality
(25 pips) and Webull (0.50%).
Meanwhile, for Australian ETFs, Webull, Betashares Direct, IG, CMC Invest and Vanguard offer the lowest fees, charging a flat $0 brokerage fee on some or all ETF investments (buy orders only, other conditions may apply).
We compared the fees charged by the online share trading platforms reviewed in Finder's latest Awards and Best Investment Platform update. As part of our analysis, we ranked trading platforms based on:
For more information about our methodology, head to our share trading platform ratings page. Bear in mind that the brokers displayed on this page may not always be best for you and we encourage you to do your own research.
"Fees play a critical role in determining an investment's long-term returns. High fees, like those associated with actively managed funds, will eat into an investor's profits and erode the value of their portfolio over time. Most investors should just focus on low-cost, passive investment strategies, such as index funds or ETFs, that offer broad market exposure at a fraction of the cost of actively managed funds."
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A brokerage fee (also called commission) is what your stockbroker charges whenever you buy or sell a share.
Basically, you'll need to pay a specific amount to the broker in return for using its service.
This fee is based on the size or value of the trade. It could be a flat fee or an amount calculated as a percentage of the transaction value. The fee is charged both when you buy and sell a share.
Brokerage fees are one of the largest expenses associated with online share trading and can have a big impact on the affordability of your investments.
If you're a frequent trader and you're paying a brokerage fee of $30 every time you buy or sell a parcel of shares, this can quickly add up to a substantial amount and eat away at your trading profits.
That's why it's essential for anyone thinking of getting started in the share market to compare brokerage fees charged by online share trading platforms and shop around for the cheapest option.
Brokerage fees are far from identical from one provider to the next, so comparing fees is important.
Brokerage can range from $0 to around $60 per trade for online share trading platforms.
Full-service brokers such as Morgans or Morgan Stanley start fees at around $80 per trade, usually charged as a percentage of the amount being traded.
Some providers have simple fee structures and others have quite complex arrangements. Brokers calculate fees using the size or value of the trade, how often you trade and in which country the stocks are listed.
Different brokerage fees often apply to phone trades and other unique trading options, so it's worth reading the fine print to find out how much extra it will cost every time you make a trade.
While share trading platforms haven't reached the lows of some other countries, there is an emergence of "free" brokerage offers in Australia. However, although you don't need to pay a commission, this doesn't mean they're free.
Instead, you're typically charged a foreign exchange fee (global stocks only) to convert Australian dollars to the required global currency. Other fees you could be charged include account maintenance fees, account top-up fees, inactivity fees or fees to trade other types of products on the platform.
Here's our list of "free" trading platforms at the time of writing:
*Free in this case refers to brokerage or commission fees (T&Cs apply).
If you're looking to find the cheapest share trading platform there are a few things you'll need to consider. Of course, it all comes down to how you're intending to use it.
Here are some of the key features to look at when comparing online share trading platforms:
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Do they all charge brokerage on sell orders? If so, should that be included? I’ve found some of them charge a lot more than the buy brokerage to sell a security?
Hi Greg,
Yes typically online trading platforms charge brokerage on sell orders – although this is usually the same cost as the brokerage fee to ‘buy’ equities. CMC Invest is one unusual case where it offers $0 brokerage on ASX buy orders (up to $1,000), but charges a fee ($11+) on sell orders. You make a great point though that if this fee is different, we should be highlighting that. We’ll look to review our products and update this where needed.
Thanks
I’m trying to compare ways/costs of selling deceased estate shares, is this something you have looked into ?
Hi Cate,
Selling inherited shares can be complicated and depending on the circumstances you may want to speak to a financial advisor. However, if you’re looking for some general information, you can read our guide to selling shares: https://www.finder.com.au/share-trading/how-to-sell-shares. In most circumstances, the shares will be registered with a share registry such as Computershare and you can contact them to discuss the sale or transfer of your shares to another broker. You can check which registry by searching for the stock on the ASX website and scrolling down to the ‘Share registry’ section.
Good luck.
Your info on IG about fees is slightly incorrect. You quote 0 monthly fees however you should also advise potential customers that IG now charge $50 a quarter if you make no trades.
Hi Dave,
Thanks for getting in touch with Finder.
I’m sorry to hear about your experience with IG. Upon checking, I have confirmed that there’s a $50 subscription fee that you need to pay quarterly depending on your trading activity during the same quarter.
However, you can easily be exempted from the charge, if you do deal at least three times using your share trading or CFD accounts during the same quarter. Alternatively, if you hold no open positions in your share trading account at the end of the quarter, then you won’t get charged as well.
You may know more about IG by getting in touch with them or reviewing your terms and conditions.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Can I start in share market with a small budget of AU$10000 and which broker would accept me?
Hi Therese,
Thanks for getting in touch with Finder. I hope all is well with you. :)
Yes, you can start trading with that budget. In most cases, you only need about $500 to start share trading.
Regarding your second question, the right broker for you is the one that meets your preferences, needs, and budget. You can choose a broker based on your trading knowledge and experience, the markets you can access, the fees involved, trading sources, and customer service. You can learn more about this from our guide to open a share trading account. On that page, you will how to open a share trading account and other helpful tips. It’s a good guide to read for beginners.
I hope this helps. Should you have further questions, please don’t hesitate to reach out again.
Have a wonderful day!
Cheers,
Joshua
As a small investor with an vestment less than (10k) ,What is the cheapest platform to buy stock and hold them for 3 years?
Most platform overhear will have a quarterly $50 dollar inactivity fee , in addition to the Broker fee ( IG is one example )!
Hi Jimi,
Thanks for getting in touch with finder. I hope all is well with you. :)
Generally, most share trading platforms come with inactivity fees. This encourages users to stay actively using their account or motivate them to close their account instead of taking up the platform’s resources.
While we don’t have a page that specifically lists share trading platforms that don’t charge inactivity, you may still check our list on this page. You will find inexpensive stock trading platforms that might be able to meet your needs. Click on the “Go to site” green button of your desired provider and it should redirect you to their site. From there, you can know more about whether they charge inactivity or not.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua