Saving money on brokerage fees can be an important way to get ahead when investing. Not only can high fees erode some of your returns, it also means you can invest less money.
Australia's cheapest online stock brokers
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 US$1.00 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).
Methodology: How do we rate Australia's cheapest brokers?
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.
Expert insight
"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."
Chris Brycki
Founder, Stockspot
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What are brokerage fees?
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.
Did you know?
You could save $1,046 a year on average in brokerage fees by switching to a more suitable online broker, according to Finder research. You might even save money by having more than one platform, especially if you are investing both in Australia and internationally.
How much will you need to pay for stock brokerage?
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.
Free trading platforms in Australia*
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).
Tips for finding the cheapest share trading platform
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:
Fees. Almost every platform will charge you a brokerage fee (also called a commission fee) when you transact. Generally, the lower the fee if it fits your needs the better.
Other fees. Some will also charge you additional fees such as monthly fees or inactivity fees. To see more about fees click here.
What can you trade? There's no point saving on fees if you're missing out on investing where you want. Some trading platforms will let you invest in multiple countries, others just Australia. There are also trade currencies, indices, cryptocurrencies and much more to consider. Find a broker that matches your needs.
Ease of use. Again saving money isn't useful if the app is difficult to use. You should look for a platform that allows you to make fast and precise trades with minimum fuss.
Access to data. Does the platform offer dynamic, real-time or delayed market updates? Some platforms offer research and broker analysis on individual stocks that can come in handy.
Order types. Can you place orders at market and/or at limit? Are other order types such as stop/loss orders an option to add more flexibility to your trading? These should be considered when choosing a broker.
Reporting. Check the reporting tools on each platform to help you track how your trades are performing, record dividends and pass on any relevant information to the Australian Taxation Office (ATO) at tax time.
Customer support. Look for phone, email and live online chat support. Does it offer customer service 24/7 if you're having trouble placing a trade?
Education. Some platforms also feature a range of educational tools and resources, such as how-to guides and webinars, to help you get more out of your trading account. If you haven't got access to the education you need through your broker it can become an additional cost, so keep that in mind.
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Frequently asked questions
If you're trading under $1,000 then CMC Invest is your cheapest CHESS-sponsored ASX broker in Australia with a $0 brokerage deal.
For larger trades, Tiger Brokers charge $3 on all ASX trades, while moomoo and Stake charge $3. All 3 are also CHESS-sponsored brokers. eToro charges US$2, but does not offer CHESS-sponsored shares.
The answer continues to get a little more complicated if you're investing in ETFs or overseas.
If you're an ETF investor exclusively, the likes of CMC Invest, Webull, IG and Vanguard will let you purchase ETFs on a zero dollar commission.
There are also a host of free (zero commission) brokers for US market trades. These include IG, CMC Invest and Webull who all offer the cheapest brokerage.
According to the most recent Finder Share Trading Awards, CMC Invest is the best overall broker in Australia.
CMC Invest took out our award due to its strong research tools, long list of product choices and low brokerage fees that will suit most types of investors.
Although it is important to point out there's no one absolute overall best broker. You should find a broker that matches your personal needs.
Yes, some brokers let you start trading in Australia for $1 but they use a custodial model, meaning the shares are in the broker's name. These are usually as part of a fractional share.
If you want to buy Australian shares in your own name through CHESS sponsorship then you will need to invest $500 minimum.
You can buy shares listed overseas from $1 with certain brokers such as Revolut, Interactive Brokers and Douugh. Again, this means you may only own a fraction of a share.
There's nothing wrong with having multiple brokerage accounts, especially if you're taking advantage of different fees and services.
Brokers will often come to market with their own specialisation. If you're looking to trade in multiple countries and across different products you can potentially save in fees through this. For example you could purchase free ETFs with Pearler and get access to free brokerage in the US markets with IG.
You can also save on commissions, margins, advanced trading strategies and get better research tools if you have multiple brokers.
Having more than one broker could also work for those with multiple investing goals. You can have an account for example if you're looking to invest for your kids and another for retirement.
Finally it can allow you to take advantage of specials offered by a broker. Brokers often compete for business, meaning they will reduce fees or have special offers.
Of course the downside of multiple brokers is it can be more confusing. Especially the tax implications on trading through each of the brokers. So it is important to keep track of each.
Fees on trading platforms differ greatly. When it comes to the ASX you're usually looking at somewhere between $5 and $19.95 per trade depending on who you sign up with.
If you're looking to buy US or global stocks, brokerage ranges from $0 to $60 per trade, depending on the broker.
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.
Kylie Purcell is an experienced investments analyst and finance journalist with over a decade of expertise in a wide range of financial products, including online trading platforms, robo-advisors, stocks, ETFs and cryptocurrencies. She is a sought-after commentator and regularly shares her insights on the AFR, Yahoo Finance, The Motley Fool, SBS and News.com.au. Kylie hosts the Investment Finder video series and actively contributes to the investment community as a judge and panellist. She holds a Master of Arts in International Journalism, a Graduate Diploma in Economics, and ASIC-recognised certifications in securities and managed investments.
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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.
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Hi, i’m a full time uni student with less than $5k to invest in stocks. After reading countless articles looking for the best or most suitable broker to trade aus/us stocks, i’m still undecided. Could you please give me some advice?
LiezlOctober 20, 2017
Hi Jonski,
Thanks for reaching out.
When choosing a share trading platform, you can start by comparing the commission fees, availability of advise and research options, integration with bank accounts, and access to other markets. You may refer to our guides on how to choose a good stockbroker and platforms for beginners for more helpful information.
Index funds are a hot topic right now, but how do you actually invest in them?
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Hi, i’m a full time uni student with less than $5k to invest in stocks. After reading countless articles looking for the best or most suitable broker to trade aus/us stocks, i’m still undecided. Could you please give me some advice?
Hi Jonski,
Thanks for reaching out.
When choosing a share trading platform, you can start by comparing the commission fees, availability of advise and research options, integration with bank accounts, and access to other markets. You may refer to our guides on how to choose a good stockbroker and platforms for beginners for more helpful information.
Cheers,
Liezl