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eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Not suitable for all investors. Capital at risk. See PDS and TMD.

Best 7 Stockbrokers in Australia

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eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Not suitable for all investors. Capital at risk. See PDS and TMD.

As more people realize that you do not need piles of money to start investing, stock trading platforms are doing what they can to attract new customers.

To help you start investing, we are taking a look at how to find the right Australian stockbroker for you.

The 7 Best Australian Stockbrokers

Now that we have covered what a stockbroker is and how to choose one, here is a review of the 7 best stockbrokers in Australia.

This list provides a brief description of the different brokers to help assist you in your research.

It is important to remember that this is not a definitive list and should not be considered financial advice.

Before making your final decision, ensure you have conducted further and more substantial research.

All prices and values are in US dollars unless specified as A$, which represents Australian Dollars.

1. eToro

Pros

  • Regulated by FCA, MiFID, ASIC
  • 0% commission on stocks
  • Social and copy trading

Cons

  • More expensive than most of its competitors
  • No MetaTrader platforms

Best for: Social trading
Minimum deposit: 200<br>Withdrawalfee:200<br> **Withdrawal fee:** 5
Tradable assets: Stocks, EFT, forex, CFD, cryptocurrencies
Number of stocks: 2,000+

eToro is an Israeli fintech company that has been operating since 2007.

It is not listed on any stock exchanges, nor does it disclose its financial information. However, it is safe to use as it is regulated by ASIC.

eToro excels at social trading with over a million users, highly active social feeds and up-to-date public trading profiles.

Its innovative CopyTrader feature allows users to see what other, more experienced traders are doing in real-time.

It also automatically copies their trades to your portfolio. This is ideal if you are new to trading or do not have the time to manage your portfolio.

The broker allows you to invest in stocks from across the world, including the New York and London Stock Exchanges.

Visit eToro

eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Not suitable for all investors. Capital at risk. See PDS and TMD.

2. XTB

Pros

  • Regulated by the FCA
  • Low forex fees
  • Fast withdrawal and deposit with no fee
  • Live chat customer service

Cons

  • Limited product portfolio
  • High fees for stock CFDs

Best for: Forex trading
Commission: Fees included in the spread
Minimum deposit: 0<br>Withdrawalfee:0<br> **Withdrawal fee:** 5
Tradable assets: Stocks, EFT, forex, CFD, cryptocurrencies
Number of stocks: 1,000+

XTB is listed on the Warsaw Stock Exchange and regulated by the UK's FCA. It is not regulated in Australia but is still considered safe to use.

Forex fees are very competitive; however, stock CFD fees are higher than some competitors.

It offers multiple withdrawal options and educational material; but lacks fundamental data and offers limited research tools.

Visit XTB

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

3. City Index

Pros

  • Regulated by FCA
  • Low forex fees
  • Low minimum deposit
  • Good trading and research tools
  • Social and copy trading

Cons

  • No customer service during weekends
  • Inactivity fee
  • High commission for shares CFD trading

Best for: Research tools
Commission: 0.08% of the trade
Minimum deposit: 100<br>Withdrawalfee:100<br> **Withdrawal fee:** 0
Tradable assets: Forex, CFD, cryptocurrencies
Number of stocks: 4,500+

City Index is known for its use of spread betting as the money you make from your bets are tax-exempt.

It is a short-term strategy rather than a long-term investment.

The platform has an interactive dashboard with multiple market views, charts and technical indicators, making it more suited for experienced traders.

City Index offers low and competitive fees but has limited stock options.

Visit City Index

4. FXCM

Pros

  • Low minimum deposits
  • Wide range of trading platforms
  • Volume discounts

Cons

  • Limited products
  • Higher than average spreads

With the mantra of 'Client First. Trader Driven', FXCM is a British zero commission broker that offers trading in shares, CFDs and Forex for clients around the globe.

Although it does not offer services to traders in Hong Kong, New Zealand and a few other countries, FXCM is well regulated by FCA, ASIC, CySEC and FSCA.

FXCM has a long history, founded in 1999 – and although there have been some legal problems in the past, it is considered to be a reliable broker.

With FXCM you can trade the following instruments:

  • 45 currency pairs
  • 15 stock index CFDs
  • 7 cryptocurrency CFDs
  • 12 commodity CFDs
  • 219 Stock CFDs
  • 1 bond CFD

There are two types of account – a Standard account with a minimum deposit of 50,oranActiveTraderaccountthatmustmaintainatleast50, or an **Active Trader account** that must maintain at least 25,000.

The only real difference between these account types is that the cost of the spread is slightly better for the trader with an Active Trader account.

FXCM does not charge a commission, and the cost of trading is built into the spread. There are also no fees to open an account, deposits are free from bank accounts as well as credit and debit cards, and although there is an inactivity fee, it doesn’t kick in until the account has been untouched for more than 12 months.

Withdrawals are free to a credit or debit card, but you can expect withdrawal fees if you are moving funds to your bank account.

FXCM works with some of the most popular trading platforms, like MetaTrader 4, ZuluTrade and NinjaTrader, but it has a decent proprietary platform that is available as a web and desktop trader as well as a mobile app.

The Trading Station web platform is simple and user-friendly, with great customisation and search facilities.

You can make several different order types on this platform, including time orders. However, you cannot receive any price alerts or notifications, and the research tools are not integrated – you need to open another web page to use them.

The desktop platform is just as easy to use, but there are a lot more order types available and you can set price alerts and notifications.

The mobile version of Trading Station is available for both iOS and Android. It too is simple to use, but the search function is a bit clunky and doesn’t have the most intuitive interface – and surprisingly, it does not support any notifications or price alerts.

One of the best parts of the FXCM platform is the wealth of educational materials. Alongside the useful demo account, there is an extensive library of video, webinar and downloadable PDF content that has all the information a beginner needs to feel confident in trading.

The research provided includes charts, technical analysis and a news feed. There is also a market screener and great trading ideas.

FXCM might have limited instruments, but with low fees and no commission with good education and research, it is a great broker for beginner traders.

Visit FXCM

5. Revolut

Pros

  • Regulated by the FCA
  • No withdrawal fees
  • No minimum deposit
  • No inactivity fee
  • Set price alerts
  • Offers fractional shares
  • User-friendly interface

Cons

  • Limited commission-free trades depending on chosen plan
  • No demo account
  • Limited product offering
  • Lacks educational resources
  • Limited customer support

Best for: Beginners
Commission: Included in the trading fee
Minimum deposit: 0<br>Withdrawalfee:0<br> **Withdrawal fee:** 0
Tradable assets: Stocks, cryptocurrencies

Revolut is a fast-growing digital bank regulated in the UK.

It is entirely digital but very limited in resources.

However, it does have very competitive fees.

There are four account options:

  1. Standard account: Offers one free trade per month
  2. Plus account ($4.99): Offers three free trades per month
  3. Premium account ($9.99 per month): Five free trades per month
  4. Metal account ($14.99): Unlimited free trades per month

Visit Revolut

6. Switch Markets

Pros

  • Regulated by ASIC
  • Low minimum deposits
  • No deposit fee
  • No inactivity fee
  • Free VPS
  • Social trading
  • Tight spreads
  • Useful trading tools and research

Cons

  • No customer support during weekends
  • Not FCA regulated

Founded in 2019, SwitchMarkets.com styles itself as 'the place traders come to trade', and with an enormous range of trading instruments available through MetaTrader 4 and a proprietary platform, SwitchMarkets.com has a lot to offer.

The parent company of SwitchMarkets.com (Royal ETP) is regulated by ASIC and CySEC as well as some other lower-tier jurisdictions, while client funds are segregated in Tier 1 banks – which makes it more secure.

With SwitchMarkets.com you can trade:

  • 62 Forex pairs
  • 8 metals
  • 21 indices
  • 86 share CFDs
  • 4 cryptocurrencies

There are just two account types available, which makes getting started a breeze – you can decide to go for a Standard account that offers zero commission and spreads as low as 0.6 pips, or a Pro account which has spreads from 0.0 pips and a 7perlotroundturncommissioninstead.Eachaccounthasaminimumdepositofjust7 per lot round turn commission instead. Each account has a minimum deposit of just 50.

For international traders, and those that want flexibility in both deposits and withdrawals, there are multiple options – from the usual credit and debit card to PayPal and eWallets like Neteller and Skrill, for example. Deposits and withdrawals are simple, fast and free.

The education available on the platform is also simple – several ‘cheat sheets’ covering all you need to know about trading, from terms to strategy, all in downloadable PDF formats and all for free.

There are several tools available on the platform to improve your trading strategy, including a Market Heat Map, lot size and Forex profit calculators, and even EA tools.

As a relatively new broker, traders will find many offers to entice them to sign up – from a free VPS to a credit bonus.

This broker is not available in Japan but offers several options for international traders without hidden costs.

Visit Switch Markets

Risk warning: Trading OTC derivatives is risky; please read our PDS and disclaimer before trading with us. We encourage you to seek your own independent advice and to consider your own financial situation, needs and objectives prior to making any decisions.

7. CMC Markets

Pros

  • No minimum deposit
  • Wide range of trading instruments
  • Low forex fees
  • High level of regulation, both UK and globally
  • Extensive range of trading tools
  • Mobile app for trading on the go

Cons

  • High CFD fees on shares and ETFs
  • Can only trade with CFDs or spread betting
  • Does not lead to ownership of trading assets

Best for: All-round service
Commission: 0.10% minimum fee of A7<br>Minimumdeposit:7<br> **Minimum deposit:** 0
Withdrawal fee: $0 (a fee may apply for same-day and international withdrawals)
Tradable assets: Forex, indices, commodities, CFD, cryptocurrencies, shares, treasures
Number of stocks: 10,000+

CMC Markets won six awards in Australia in 2018, including 'highest overall client satisfaction', 'platform features' and 'educational material/program'.

It is regulated by ASIC, and CMC opened its Sydney office in 2002.

CMC Markets is considered one of the best trading platforms with a diverse portfolio.

Its education tools include downloadable guides that detail how to trade and what strategies to use to get the most from your investments.

Visit CMC Markets

69% of Retail CFD or Spread Betting Accounts Lose Money.

Stockbrokers in Australia
Stockbrokers in Australia

What Is a Stockbroker?

A stockbroker is someone who buys and sells stocks on behalf of someone else.

This could be on behalf of an individual or an organization such as a hedge fund.

Stockbrokers work in one of three ways:

  • Discretionary – Whereby they take over the complete management of the portfolio and make decisions on the client's behalf.

  • Advisory – Here, they can offer suggestions and advise on the best course of action, but they cannot make any trades without their client's authorization.

  • Execution-only – The stockbroker does not offer any advice. They simply make the trades and investments they are told to.

What Are the Different Types of Stockbrokers?

As the stock markets can be complex and difficult to understand, you must first learn the different types of stockbrokers operating in Australia:

Full-Service Brokers

As the name suggests, full-service brokers do everything to make your investing experience as easy as possible.

They will make suggestions, offer advice, and action trades and investments on your behalf.

Full-service brokers also provide detailed financial reports detailing your portfolio's performance.

Discount Brokers

Discount brokers are more affordable than full-service brokers and only make trades when their clients want them to.

They often do not offer any advice, so you still need to manage your finances and do your research.

Online Stockbrokers

Online stockbrokers are increasing in popularity as you can make investments and manage your portfolio anywhere and at any time from your mobile phone.

They sometimes offer educational material and data analysis tools.

These types of brokers are for beginners and experienced traders.

How Do Stockbrokers Make Money?

Stockbrokers make money by charging a commission, subscription fees, or additional fees for different investments, trades and management levels.

Are Australian Stockbrokers Regulated?

Australian stockbrokers are regulated under the Australian Securities and Investments Commission (ASIC).

It acts under the Parliamentary Secretary to the Treasurer and regulates all Australian companies, financial markets, and financial services organizations and professionals who advise on:

  • Insurance
  • Superannuation
  • Investments
  • Credit
  • Deposit-taking

Its role is to:

  1. Facilitate and improve Australia's financial system's performance
  2. Promote informed investor participation
  3. Enforce the law efficiently and effectively
  4. Make important information publicly available as soon as possible

Key Considerations Before You Choose an Australian Stockbroker

Know What You Need

Before researching, make a list of everything you want from your stockbroker.

If you are a beginner, you might want educational material and easy-to-use software and analytical tools.

More experienced traders may want the best data and research tools.

Establish where you are in your trading journey and decide what features will benefit you now.

You should also consider if you want a platform with social copy trading.

Listen to Other Investors

Read online reviews and seek the opinions of investors that have used the platforms before.

Consider that what is difficult for them to use could be easy for you; therefore, find as many opinions as you can to further your understanding.

Is the Stockbroker Regulated?

The Australian regulator is ASIC.

If your stockbroker is regulated, it will share those details on its website.

Alternatively, you can search the ASIC database.

When looking at the safety of a broker, the most reliable have been trading for at least two years or have survived a recession.

If the broker is outside Australia, check if it is regulated by a Tier one reputable country such as the UK.

What Assets Does It Trade?

In addition to stocks and shares, many brokers now trade forex and cryptocurrencies.

Using a stockbroker with multiple tradable assets allows you to diversify your portfolio and maximize your investments.

What Trading Platforms Are Available?

A trading platform is software designed for investors to make trades.

Some platforms are very easy to use with modern interfaces. Others are more dated and simpler.

There may also be different charges or subscription options for the different platforms available.

What Is the Withdrawal Amount?

Check the maximum amount you can withdraw in a single transaction, as well as how you can withdraw and what the fees are.

The average transfer time should be two or three days.

Stockbrokers that make withdrawals difficult may not be trustworthy.

What Is Its Customer Service Like?

There is no excuse for poor customer service in today's age. Dedicated software allows businesses to reach their customers in a variety of ways.

If you need tech support, find a broker with 24/7 help via telephone or live chat.

Regardless of how much support you need, the broker should have at least two ways you can communicate with it, and it should respond within two working days.

What Do Its Platforms Offer?

It is easy to get drawn to stockbrokers with introductory offers, but look at what it provides beyond that.

Find what educational materials it has. Some brokers have limited materials, while others have webinars, podcasts and demo accounts.

You should also assess its research and data tools. Not every broker offers fundamental data, yet it is a valuable tool for analysis.

Deciding what educational and research tools you have to have will help you narrow your choices.

Frequently Asked Questions

Superhero is a great stockbroking firm to trade and invest in Australian shares. It is a low-cost broker choice and it is tailored towards the needs of most retail investors.

On Superhero, you can trade with a little as $5 brokerage and you do not have to pay anything extra on US trades.

CommSec is also a great shared trading platform that allows users to trade with ETF, forex, direct debit and CFD. It has great educational tools and is user-friendly for traders of all levels.

The use of forex has become more popular in trading because of the internationalization of trading markets. The use of different currency exchanges can suit traders all across the world.

FP markets is a well-established finance broker based in Sydney. It has fantastic service reviews and has developed a strong reputation in the forex trading market.

Traders have access to more than 10,000 stocks across the global exchange market and they can trade in a range of commodities including minerals and oil.

A trading assistant works alongside a broker in a supporting role. Their job is to research any investment proposals and to aid the decisions of a senior sales trader.

An execution trader is someone who places trades at the discretion of others. They must carry out the trade that is directed either by an advisor or a computerized mechanism. Execution traders are often found in hedge fund trading positions.

To become a successful stock broker you will need a university education in commerce, financing, economics or anything with accountancy as the main point of study.

You will also need first-hand vocational experience and a training qualification known as a VET.

Depending on the types of stocks you want to broker with, you may need a license as well. A good trading portfolio will also help you become a successful stock broker.

There is a list of brokers who have $0 brokerage fees. These include eToro, CMC Markets, Stake and Superhero.

If you are looking to broker primarily with international and US markets then eToro is the best trading broker for this type of trading.

If you are looking to exclusively trade with Australian shares then Superhero has the lowest brokerage fees.

Even though you do not need a broker to invest in shares, a share trading platform is technically considered a broker.

If you do not want the personal interaction that you would have with a broker, there are a few ways you can still invest. You can still invest in initial public offerings (IPOs).

Another way to trade without a broker is to invest in a managed fund. Managed funds are a list of multiple company stocks that you can monitor by yourself. If you work for a company or corporation, you may also be able to invest in company shares as part of your contract.

Robinhood is known for being a cost-effective app you can use either from your tablet or mobile device.

At this moment in time, Robinhood has not launched an app for use in Australia.

Most trading platforms and investment apps are tailored towards beginners' use. Many of them have assistive tools you can use to invest and tutorials you can use to educate yourself on how to trade effectively.

The trading platform Sharesies is great for beginners because it has no minimum investment, meaning you can invest a few dollars each time. There is little financial risk to using Sharesies. It also has very low brokerage fees and users get access to international stock trading. This means that users can use Sharesies to get comfortable with trading before entertaining other trading platforms.

To find the cheapest stock broker in Australia, you need to find one that has little to no brokerage fees. No brokerage fees mean you will not be charged for investing in any shares.

eToro, IG, CMC Markets and Superhero all have no brokerage fees. These trading platforms are some of the most cost-effective ways in which you can begin investing.

Final Thoughts

As you can see, there are many things to consider before choosing an Australian stockbroker.

Each online broker has its pros and cons, and what appeals to one person may not appeal to another.

The eToro platform always features related articles across the web. It has an attractive interface and enough features to suit all trading levels.

The CopyTrader feature is particularly popular as it allows traders from all over the world to connect and learn from each other.

Before making your final decision, we recommend that you spend time working through this list, comparing it with others and taking advantage of the free demos.

Reputable stockbrokers will allow you to set up a virtual account with fake money. Use these accounts to test your trading strategy and all the platform features, including customer care and trading/non-trading fees.

There is no limit to the number of brokers you can open accounts with; therefore, try as many as you like and until you find a platform that works for you.

You should continue using a demo account until you are confident you are ready to invest your own money. These signs will indicate if you are ready to live trade.

WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.

eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Not suitable for all investors. Capital at risk. See PDS and TMD.


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