Choosing the right online broker is the first step for anyone looking to participate in the Australian financial markets. With many platforms to choose from, deciding which one is right for you can feel overwhelming. Benzinga provides a guide to the best online Australian brokers, with information about brokerage costs and investment options as well as platform usability.
Quick Look at the Best Online Australian Brokers
- Interactive Brokers – Best Overall
- CMC Markets – Best for High-Volume Traders
- SelfWealth – Best for Low Cost
- TradeStation – Best for Futures Trading
- eToro – Best for Beginners
How We Chose the Best Online Australian Brokers
We selected the five best online Australian brokers based on market access, fee transparency, regulatory standing in Australia, availability of AUD accounts and mobile/web accessibility.
5 Best Stock Trading Platforms
Interactive Brokers – Best Overall
Interactive Brokers (IBKR) is a premier online brokerage for active traders who want extensive global market access and low fees. It offers a range of tradable assets and contracts on many international exchanges. Its sophisticated tools and platforms suit experienced traders and institutions executing complex trading strategies.
Key Features:
- Fees: IBKR is known for its competitive and transparent fee structure. For Australian stocks and exchange-traded funds (ETFs), it offers fixed commission options with a tiered structure.
- Investment Access: IBKR provides access to more than 160 markets in 36 countries, including the Australian Securities Exchange. Investors can trade various products including Australian and international stocks, ETFs, options, futures, currencies, bonds and contracts for differences (CFDs).
- Platform Experience: IBKR’s powerful trading platforms cater to different experience levels. Its Trader Workstation suits advanced traders, while its IBKR Desktop is a more streamlined platform. IBKR Mobile is great for trading on the go and the web-based Client Portal makes account management easy.
- Tools/Education Highlights: IBKR offers tools for in-depth analysis and efficient trading, including advanced charting with over 100 indicators, sophisticated order types, real-time risk management tools, portfolio analysis tools and market scanners. The platform also provides educational resources through IBKR Campus, Traders’ academy and Traders’ Insight blog.
- Drawbacks: The Trader Workstation platform is complex and the volume of features may be overwhelming for beginning investors. The tiered commission structure is cost-effective for active traders but may be too complicated for investors with simpler needs.
Who It’s Best For: Experienced active traders who want access to global markets, low trading costs and are comfortable with sophisticated trading platforms and tools.
CMC Markets – Best for High-Volume Traders
CMC Markets specializes in CFDs and forex trading. Its feature-rich platform is well-suited for high-volume traders. Experienced traders will appreciate its tight spreads, fast execution and advanced trading tools.
Key Features:
- Fees: CMC Markets generates revenue through the spread – the difference between the buy and sell price of an asset. It offers competitive spreads on a range of CFDs including indices, forex pairs, commodities and shares. It charges commissions on CFD equity trades and institutional displaced moving average (DMA) trades.
- Investment Access: CMC Markets primarily offers trading in CFDs, providing leveraged exposure to the underlying assets. This includes Australian and international shares, major and minor forex pairs, commodities and cryptocurrencies.
- Platform Experience: CMC Markets is available on desktop, web and mobile apps. It’s customizable and offers advanced charting capabilities with many technical indicators and drawing tools. Traders can take advantage of integrated news feeds, create watchlists and set price alerts.
- Tools/Education Highlights: CMC Markets’ trading tools are designed for active traders. It offers advanced order types, risk-management features and detailed market analysis. The platform provides access to Reuters news and analysis and offers educational resources including webinars, tutorials and guides.
- Drawbacks: CMC Markets primarily deals with CFDs, which are leveraged products with a risk of significant losses, especially for inexperienced traders. Direct investment in traditional assets like stocks and ETFs is not its core offering.
Who It’s Best For: Experienced, high-volume traders in Australia who are interested in trading CFDs and forex and require a customizable trading platform with advanced tools.
SelfWealth – Best for Low Cost
SelfWealth is a cost-effective online broker that appeals to investors looking for a simple, flat-fee structure. By charging a fixed brokerage fee per trade, SelfWealth offers significant savings for investors who trade large volumes or multiple times. SelfWealth provides an accessible and affordable path for investors to build their investment portfolios.
Key Features:
- Fees: SelfWealth charges a flat fee of AUD 9.50 per trade and USD 9.50 per trade for Australian and U.S. transactions, respectively, no matter the value. There are no minimums to open an account. Live data and some advanced features may require fees.
- Investment Access: Investors can trade on the Australian Securities Exchange (ASX) and U.S. markets including the New York Stock Exchange (NYSE), the Nasdaq Stock Market (NASDAQ) and the American Stock Exchange (AMEX).
- Platform Experience: SelfWealth’s intuitive platform is accessible via a web browser or mobile app. The platform is easy to use, providing portfolio overviews, straightforward order entry and basic charting tools. It’s not as feature-rich as platforms designed for advanced traders but its simplicity makes it accessible for beginners and investors who want a user-friendly experience.
- Tools/Education Highlights: SelfWealth offers basic charting tools, portfolio tracking and market news. A community forum allows investors to share insights and discuss investment strategies. While its educational resources are not as extensive as some larger brokers, the platform provides basic information to help investors get started. SelfWealth’s portfolio health check feature allows users to benchmark the platform’s community.
- Drawbacks: SelfWealth doesn’t have some of the advanced trading tools and analytical features that more active traders want. Investment options are limited to stocks and ETFs, with no direct access to options and futures.
Who It’s Best For: Cost-conscious Australian investors who primarily trade Australian and U.S. stocks and ETFs.
TradeStation – Best for Futures Trading
TradeStation offers access to various global markets and asset classes, providing experienced traders with the resources they need for in-depth market analysis, strategy development and high-frequency trading. The platform’s focus on performance and customization makes it a compelling choice for serious traders. TradeStation’s FuturesPlus platform offers tools like a Vol Curve Manager and risk analysis via Greeks, specifically designed for futures traders.
Key Features:
- Fees: Commissions can be fixed-rate or per-share/contract, depending on the asset class and trading volume.
- Investment Access: TradeStation offers access to a range of global markets, including ASX and major U.S. and international exchanges. Australian clients can trade stocks, ETFs, options, futures, forex and cryptocurrencies, depending on regulatory offerings.
- Platform Experience: TradeStation’s desktop, web and mobile platforms are designed for active trading. The TradeStation desktop platform is customizable and features advanced charting and a library of technical indicators and drawing tools.
- Tools/Education Highlights: Features of TradeStation’s advanced trading tools include charting, historical data, backtesting capabilities, automated trading, matrix order entry and real-time market scanners. Educational resources include webinars and tutorials to help users leverage the platform’s features.
- Drawbacks: The platform is complex and its features can be overwhelming for beginning traders. The fee structure is less straightforward than flat-fee brokers and data feed fees may add to the overall cost. Customer support appears to be geared toward experienced users who are familiar with the platform.
Who It’s Best For: Experienced and active traders who want a powerful, customizable platform with advanced charting, backtesting and automated trading capabilities.
eToro – Best for Beginners
Beginners find eToro’s intuitive platform and social trading features particularly appealing. Its simple interface and ability to observe and copy the trades of experienced investors lower the barrier to entry for those new to online investing. People just starting out in investing like its user-friendliness and community-driven learning.
Key Features:
- Fees: It’s free to open an account on eToro and the platform does not charge a management fee, although it may charge a withdrawal fee for some accounts. A commission fee of $1 or $2 may apply when opening and closing a stock position, depending on your country of residence. A minimum deposit and inactivity fees may be charged if you don’t log into your account for an extended period.
- Investment Access: The platform allows investors to access Australian and international stocks, ETFs, cryptocurrencies, forex and commodities. The wide selection allows beginners to explore different asset classes.
- Platform Experience: The platform’s user-friendly interface is available on the web and mobile apps. The simple design and easy navigation make it straightforward for beginners to understand and execute trades. It’s easy to find information on the platform, reducing the intimidation factor associated with many trading platforms.
- Tools/Education Highlights: eToro’s CopyTrader feature allows users to copy the trades of popular and successful investors and its Popular Investor program rewards experienced traders for being copied. The platform also offers educational resources such as webinars, e-books and a virtual trading account with virtual funds to practice trading without risking real money.
- Drawbacks: While the social trading features are a draw for beginners, relying only on copying others without understanding the underlying strategies is risky. The spread-based fee structures are less transparent than commission-based models.
Who It’s Best For: Beginner investors who are looking for a simple, intuitive platform who are interested in learning through social trading by watching and copying experienced traders.
Choosing the Right Options Trading Platform
Online Australian brokers cater to various investor profiles. Interactive Brokers stands out for its comprehensive global market access and low fees, while CMC Markets excels for high-volume CFD and forex traders who require advanced tools. SelfWEalth provides a cost-effective flat-fee structure for trading Australian and U.S. equities. TradeStation is tailored to sophisticated traders, particularly those focused on futures and eToro offers an intuitive platform with social trading features, making it a great choice for beginners.
The best broker for you depends on your investing goals, trading frequency, desired asset classes and comfort level with the platform’s complexity.
Can I trade Australian and international stocks with these brokers?
Yes. Several brokers listed, such as Interactive Brokers and SelfWealth, offer access to both the Australian Securities Exchange (ASX) and major international markets like the NYSE and NASDAQ.
Which broker is best for low-cost stock trading in Australia?
SelfWealth is the best option for cost-conscious investors. It charges a flat brokerage fee per trade and doesn’t require a minimum balance, making it ideal for those seeking low-cost access to the Australian and U.S. stock markets.
Are there beginner-friendly brokers for Australian investors?
Yes. eToro stands out for beginners thanks to its simple platform, social trading features like CopyTrader and educational tools that help new users learn by observing experienced investors.
