How do I find the best stockbroker in Australia?

The best stockbroker for you will depend on the exchanges you want to access, your current trading experience, how often you want to trade and the overall fees you will be paying.

You'll also need to decide whether you want an online stockbroker or a full-service broker.

To find the best stockbroker that suits your circumstances you'll need to compare your options. Read on for tips and advice on how you can find the best stockbroker for you.

Our top picks for trading platforms

• How we chose these brokers

  For our top picks, we compared our Finder partners using a proprietary algorithm. We update the list regularly. Keep in mind that our top picks may not be the best for your individual circumstances and we encourage you to compare for yourself. Read our full methodology to find out more.

Full-service brokers vs online brokers

Before you start comparing stockbrokers, it’s first important to understand that there are broadly 2 different types of brokers available: full-service brokers and online brokers.

Finder survey: What investment options do Australians use?

Online vs full-service stockbrokers: How to compare

You may be starting to realise that choosing between a full-service stockbroker and an online broking service isn't always a clear-cut decision.

• Your investment. If you only have a small amount to invest, you may decide that it might not be worth your while to pay a full-service broker's fees.
• How much do you know about investing? Consider whether you may benefit from the tailored expert advice that a full-service broker may offer.
• Cost. Consider how the brokerage fees charged by full-service and online brokers will affect your investment budget. How much control do you want to have over your investments? Would you prefer to have full control over where your money is invested, or do you want a broker who can take care of all your buy and sell trades for you?
• Do you need more than 1 broker? Some investors use multiple brokers to access expert advice on different investment sectors.

How much do stockbrokers charge in Australia?

For online brokers, you will be paying between $3-$30 per trade in brokerage fees. In some instances you can get cheaper brokerage depending on what country stocks you invest in and who you've signed up with.

Full-service brokers also vary but will be more expensive, with brokerage fees typically starting from around $70–$200. Brokerage fees are usually charged as a percentage of the total buy or sell transaction amount. You may also be charged an annual management fee, which may also be charged as a percentage of your total portfolio or a flat fee.

Is it worth using a stockbroker?

You'll need to sign up to a broker if you want to invest in the stock market, whether that's an online stock broker or a full-service stock broker.

While there are some very cheap online stock brokers (investment platforms) that make it possible to start trading from just a few dollars at a time, full-service brokers might not be worth it unless you plan to invest a large sum.

Full service brokers usually charge management fees along with the brokerage fees. So even if you don't make any trades, you'll still need to pay an ongoing annual fee.

For instance, Morgan Stanley charges an account administration fee of $352 and an account maintenance fee of $3,498. These annual fees will likely only be worth it if the broker is able to make that money back for you through personalised advice, or if the income (such as dividends) earned on your large stock portfolio far exceeds that.

How to choose a full-service broker

If you’ve decided you want a full-service stockbroker to help you make the right share trading decisions, consider these factors when comparing brokers:

What you can buy and sell

Compare the investments that different brokers can advise you on and help you trade, such as shares, warrants, options, futures and more.

Fees

Compare the fees charged by stockbrokers for the services they offer. Is there a flat fee or a fee charged as a percentage of the transaction amount? Does the fee vary depending on the size of the transaction? Fees for full-service brokerages can range enormously, anywhere from $70 – $300 per transaction.

Services

Make sure you’re fully aware of the services your broker provides. Will they offer advice and then execute the trades you instruct them to, or will your broker be authorised to trade on your behalf.

Specialist expertise

Some broking firms may have specialist areas of knowledge, for example, the resources sector, which may be worth considering if you are looking to concentrate your investments in specific industries.

Minimum investment amount

There may be a minimum amount that you must invest before you are eligible to access a broker’s services.

The broker’s questions

Before a full-service broker can offer advice, they must first take the time to understand your financial situation and investment goals. Look for a broker that shows an in-depth interest in your investment needs and asks all the right questions to form a complete picture of your requirements.

Regular contact

Finally, consider how you can contact your broker if you ever have a question about your portfolio. Will you be contacted regularly with updates on the performance of your portfolio? How often will your broker monitor it and will you be informed of any adjustments that need to be made?

What full-service brokers are available in Australia?

There are plenty of full-service brokers available in Australia, some of which also have online share trading platforms if you choose that route. Some of the most popular of these include:

• Bell Potter Securities Limited
• Commonwealth Securities Limited
• Morgan Stanley Wealth Management Australia
• Morgans Financial Limited
• Phillip Capital Limited
• Shaw and Partners Limited
• Macquarie Equities Limited
• UBS

How to choose an online broker

If you’ve decided to sign up for an online broking service, keep the following factors in mind when comparing the benefits and drawbacks of different share trading platforms:

Brokerage fees

Compare the fees you will need to pay each time you buy or sell a parcel of shares. This could be a flat fee or a percentage of the transaction amount and it could also vary depending on the size of the trade.

Ongoing fees

It’s free to maintain a basic account with many online share broking services, but some charge ongoing membership fees. Many providers will also allow you to access regular company news, research and analyses if you pay an ongoing monthly fee.

What you can trade

Can you trade shares on the ASX and a selection of other global stock exchanges? Can you trade anything else other than shares through your online account?

Trading limits

Check to see whether the trading platform imposes minimum and maximum limits on your trading transaction amounts.

Ease of use

How easy is each provider’s trading platform to use? Is it simple and intuitive or is it too confusing to place a trade? Many brokers offer free demo accounts that can help you answer these questions.

Research and analysis

Compare the market analysis and stock recommendations you can access through each online broker. Will you need to pay an additional fee to access these services?

Flexible trading options

Can you take advantage of options such as stop-loss orders to create a more advanced trading experience?

Additional access

Does the provider offer a smartphone and/or tablet app to allow you to trade on the go? Is phone trading also available and, if so, does it attract any extra fees?

Customer support

Finally, make sure you can access the help you need if you ever have a problem with your account or a particular transaction.

Compare online stockbrokers

Frequently asked questions

• What is the largest stock broker in Australia?

  The biggest online broker in Australia is CommSec in terms of customer numbers.

• Which broker is best for a beginner?

  Finder's research found that the best online stock trading account for beginners is Sharesies, followed by Tiger Brokers and Syfe. These online brokers took out our award based on a number of beginner-friendly features including low minimum investment, low brokerage and auto-invest features.

• Is it better to invest with a broker or on your own?

  Whether you choose to go with a full-service stock broker or invest yourself using a share trading platform will largely depend on how much you plan to invest. If you're only intending to invest smaller amounts, say a few thousand dollars or less a year, a share trading platform probably makes more sense because of the high costs of full-service brokers. High net worth individuals with large stock portfolios might prefer to have their portfolios professionally managed.

Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Best online share trading platforms.