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Superhero launches zero commissions for ETFs

Posted: 7 October 2020 5:26 pm
News

The latest update sets Superhero as one of the only zero brokerage platforms for ASX-listed products.

Australian share trading platform Superhero has raised the bar another notch for low-cost investing by scrapping brokerage fees on all ASX exchange traded funds (ETFs).

Superhero, which is the cheapest broker on the market with a $5 flat commission on stocks and low $100 minimum investment (usually $500), has seen 10,000 users sign up since its launch in September.

Commission (aka brokerage) is the fee charged when you place a buy or sell order on a stock or ETF and is arguably the most important cost when it comes to investing in the stock market.

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Did you know you can save $1,046 in brokerage fees every year on average by switching to a cheaper share trading platform? Check out fees and features in our comparison table to find a better deal today.

Investment fees have been shrinking across the board in recent years as competition in the space heats up, with several brokers scrapping commissions altogether for US or global stock trading. But until now, there have been few zero-brokerage options for ASX-listed products and none at all for stocks.

By our count, Superhero is the only platform to drop commissions on all ASX-listed ETFs indefinitely and probably the first official zero-brokerage platform for ASX products (outside of promotional deals).

Zero brokerage in Australia

Australia has been slow on the uptake in zero commission stock and ETF trading, particularly compared to the US where "zero fee" apps like Robinhood are now the norm.

Stake was the first broker to offer zero commissions for US stocks back in 2018. Since then, CMC Markets, eToro and IG have also launched zero brokerage on US or global stocks.

But Australia's market is quite different to the US. No such deal exists for Australian stocks and there are just a few for ETFs – mostly for limited promotional purposes. Brokerage fees for Australian stocks and ETFs typically range from around $10 to $30 a trade.

Zero commission brokers compared

BrokerZero commission productsASX stock brokerage fee
CMC MarketsUS, UK, Canada, Japan stocks + ETFs$9.90 - $11 depending on trade frequency
Dabble (coming soon)US stocks + ETFsNot available
IGUS, UK, Germany, Ireland stocks + ETFs$5 - $8 depending on trade frequency
Vanguard Personal InvestorASX Vanguard ETFs$19.95 or 0.15% (whichever is greater)
SelfWealthSelfWealth SMSF Leaders ETF (ASX: SELF)$9.50 flat fee
StakeUS stocks + ETFsNot available
SuperheroASX ETFs$5 flat fee

Vanguard Personal Investor offers zero brokerage for ETFs, however only Vanguard ETFs are included on the platform. Meanwhile SelfWealth, which admittedly isn't really a zero broker platform, drops commissions for its single SMSF Leaders ETF (SELF).

It's worth mentioning Bell Direct here too, which regularly offers zero brokerage for ETFs to new investors, typically over a few weeks each year.

Among zero commission brokers for US or global stocks, there are CMC Markets, eToro, IG, Stake and Dabble (coming soon).

Superhero has partnered with market participant OpenMarkets to enable its direct market access, to support its CHESS-based nominee structure and to offer ultra-low brokerage.

Superhero co-founder and CEO John Winters said, “Investors are extremely fee conscious these days and fees in general are often a detractor from making responsible long-term investment decisions.”

“Our partnership with OpenMarkets and the technology platform we have built allows significant efficiency and ensures maximum asset and regulatory security for our customers.”

For more about Superhero, check out our review page.

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