Our Pick Of The Best Share Trading Platforms For Australians

Forbes Advisor compared more than 20 of the most popular share trading platforms in Australia to determine our top picks.

Our methodology involved analysing the availability of certain features on each platform, which included:

• Stipulated minimum trades;
• Account management fees;
• Subscription fees for various tiers;
• Brokerage fees for ASX trades;
• Fees for ETF trades;
• Fess for international trades;
• Currency conversion fees;
• Number of markets traders can access, including international;
• Access to additional assets, such as cryptocurrencies, commodities, bonds;
• If the ASX shares are CHESS-sponsored;
• The live pricing capabilities of the share trading platform;
• Trading and investment guidance, such as demo platforms to practice or online tutorials;
• Access to charting tools;
• Discounts or promotions;
• How easy the platform is to navigate;
• Customer service options, including phone, email and live chat.

What Are CHESS-Sponsored Trades and Why Do They Matter?

You will notice that one of the metrics we evaluated was whether ASX trades are CHESS-sponsored.

CHESS, which stands Clearing House Electronic Subregister System, is the system by which the ownership of shares is recorded and managed in Australia. If you buy shares on the ASX that are CHESS-sponsored your ownership is recorded and therefore guaranteed.

This means that in the rare chance that your share trading platform goes bust, you can prove ownership of the shares via CHESS. 

Not all of our top picks of share trading platforms offer CHESS-sponsored ASX trades, but most do. It’s up to you to determine how important this is when compared to other platform features.

A Note on Star Rankings

You will note that we have included a star rating next to each product or provider. This rating was determined by the editorial team once all of the data points above were considered and the pros and cons of each product attribute was reviewed. The star rating is solely the view of Forbes Advisor editorial staff. Commercial partners or advertisers have no bearing on the star rating or their inclusion on this list. Star ratings are only one factor to be considered, and Forbes Advisor encourages you to seek independent advice from an authorised financial adviser in relation to your own financial circumstances and investments before you decide to choose a particular financial product or service.

Data Research: Mia Dunn

Share trading is the practice of buying and selling a portion of a company with the view to making a profit. Ideally, share traders are looking to purchase stocks that will increase in value over time, although there are plenty of traders who focus on short-term gains, however, these are trickier to achieve. 

The process of buying and selling shares is transacted via the stock market, where companies are listed and valued across a range of indices. For example, tech-heavy stocks in the US are listed on the Nasdaq index. The price of a company’s shares is determined by a range of factors, including the demand in the market and the performance of the company.

As securities are bought and sold, the stock market fluctuates daily, meaning the price of shares can change when the market is open. This is often due to perceived risk, sentiment and the broader economic climate. For example, if there is negative news in the media about a company, you may see its share price plummet as a result. The entire index can be impacted if economic updates or outlooks are overly pessimistic.

To access the stock market, Australians can use an online share trading platform (where you complete the trades yourself) or a full-service broker (someone who completes trades on your behalf).

Gone are the days when you needed to call your stockbroker to place an order on your behalf, with most traders using apps to buy and sell stocks.

There are many benefits of share trading platforms and online brokers, the most obvious being that all that’s required is an internet connection to buy and sell your trades. 

With so much competition for your trading dollar, you can easily find a platform that’s affordable and matched to your investment goals. Many also cater to beginner investors with fractional investing, so you can buy a slice of the most expensive stocks. 

When trading, you can choose between an app on your phone or a desktop browser, allowing keen traders to make investment decisions with the tap of a finger.  Obviously, with high accessibility comes risk: immediate access to share trading platforms can cause traders to focus on short-term gains and losses. They may find they are constantly checking the market throughout the day or making investment decisions on a whim–such as selling stocks at the first sign of trouble. 

 It’s important to put measures in place to avoid knee-jerk trades, such as dollar-cost averaging or automated investing.

Some investors prioritise charting tools, while others are focused on customer-service capabilities. Because no two investors are the same, each will prioritise different platform features. But, generally speaking, the below features are considered important by most traders.

Minimum Investment

Before signing up to a share trading platform, ensure that you can afford–and are happy to–pay the minimum investment. Often this is $500, but it can increase to over $1,000 or decrease significantly to $0 for smaller platforms.

Sometimes, this minimum investment is only for the first initial trade, while other times, there’s a minimum for every trade you make.

Additionally, some platforms may have introductory offers that waive minimum initial investments or offer a certain amount of free trades. Ensure you are aware of any minimum investment requirements before signing up to a share trading platform.

Fees

There are numerous fees associated with share trading, regardless of how you choose to trade.

The most common fees are account fees or subscription fees, brokerage fees, ETF trading fees, international trading fees, withdrawal fees, and currency conversion fees.

Many platforms will price their fees in a tiered structure according to how you much you invest, while others will offer a flat-fee model.

Live Pricing Capabilities

The ASX fluctuates throughout the day, with changes happening minute by minute. For those keen to know where their investment stands in real time, live pricing is an important feature. 

Some automatically offer live pricing, while other platforms may charge a fee for access.

CHESS-Sponsored ASX Trades

As mentioned above, CHESS-sponsored trades are an important way of proving share ownership. If your share trading platform operates with a CHESS-sponsored model, you’ll be provided with a Holder Identification Number (HIN) if you don’t already have one. If you do, you can transfer your HIN between brokers.

The HIN is how the ASX records the shares you own. Some brokers, however, choose to use a custodial model for the ASX (international shares are traded in this manner). 

Those that use a custodial model for buying and selling on the ASX often have cheaper fees, but they do not have the protection of guaranteeing your share ownership if something were to go wrong with the platform.

Customer Service

No matter how experienced a trader you are, there may come a time when you need help or clarification regarding an issue with a trade or your account. On these occasions, you will want a platform that offers prompt customer service, ideally by phone.

While email is helpful, most investors would prefer the peace of mind of having their issue seen to in real time.

International Market Access

The vast majority of share trading platforms in Australia offer access to the ASX. Indeed, all of the platforms and online brokers analysed by Forbes Advisor feature access to our local bourse.

Many traders are also looking for access to international markets, such as the Nasdaq or the NYSE in the US, or any number of global indices. 

Some platforms offer access to hundreds of overseas markets, while some only have access to a few. A handful focus exclusively on domestic equities with no overseas markets on offer.

ETFs, Crypto and More

These days, it’s common for investors to trade in assets other than equities. This may include cryptocurrencies via your share trading platform or even commodities such as gold and silver.

Many online brokers offer ETFs alongside shares, but other assets, such as crypto, may be more difficult to find.

Consider what you may wish to trade in–both now and in the future—and make sure the online trading platform allows for it before committing.

Trading Guidance

Regardless of your level of experience, trading guidance tools are useful in making investment decisions.

Some platforms offer access to research from leading fund managers, such as Goldman Sachs or investing house Morningstar. It could also include more in-depth support and educational tools, such video tutorials.

There are even more advanced training tools available, including demo models that allow you to practice trading virtually or training academies to help you learn how to invest responsibly.

User Experience

Traders are looking for more than a simple transaction when they log in to their accounts. They want a seamless and enriching experience within the trading environment complete with friction-less design and an intuitive interface.