Compare some of the best-value online share trading platforms in Australia based on fees and features, according to the results of Canstar’s most recent Star Ratings and Awards.
If you’re among the growing cohort of Australians buying and selling shares online or you’re interested in getting started, your choice of trading platform can make a big difference to how easy it is to trade, how much you pay in fees and how convenient it is to keep track of your portfolio’s performance. Most providers also offer a range of research and educational tools to help you pick stocks
How do you pick a share trading platform?
The key to picking the right share trading platform for you is to thoroughly research the options (a list of things to consider is included, below). If you need help with your overall investing goals and strategy, you may benefit from seeking professional financial advice.
One helpful starting point could be Canstar’s Online Share trading Star Ratings and Awards, which recognise outstanding value providers, following detailed analysis of the platforms on our database. The Star Ratings and Awards are assessed based on the fees (such as brokerage fees) charged by the platforms, as well as the features and services they offer to investors.
Canstar’s Awards methodology divides investors into three general groups:
1. Casual Investor 
A Casual Investor tends to buy and sell shares occasionally (on average, once a month) and often uses a long-term strategy to review their investment portfolio. When selecting an appropriate broker, comprehensiveness of investment tools is typically not of the greatest importance, with education, ease of use and cost generally being amongst the more important factors.
2. Active Investor
An Active Investor tends to buy and sell shares more frequently than the Casual Investor (on average, four times a month), and may wish to include managed funds. They typically use the latest market information and fundamental analysis data/reports to determine portfolio holdings. The comprehensiveness of research tools is often an important factor in selecting the best broker for them. Due to a higher trading frequency, cost tends to be important.
3. Trader Investor
A Trader tends to buy and sell shares very frequently (on average, 30 times a month) and the latest market information is often used to determine portfolio holding. When selecting an appropriate broker, the availability of derivatives can be an influencing factor. Due to a high trading frequency, the availability of a dynamic trading platform and cost are usually key considerations for them.
| Provider | Fee for $15K trade* | Ongoing fees# | Trade with live prices^ | |
|---|---|---|---|---|
 | $15.00 | Yes | Yes | |
 |  | $7.50 | Yes | Yes |
| $14.98 | Yes | Yes |
View all Canstar rated Online Share Trading products. View Disclosures.
* Online brokerage fee for a $15,000 trade based on the number of transactions specified in the search inputs
# Ongoing fee for the account. There may be waivers and discounts subject to account use
^ The ability to view and trade on live prices
Top-Rated share trading platforms on Canstar’s database for casual investors
These are the 5-Star Rated products, based on a combination of fees and features, for ‘casual’ investors who trade an average of once a month, according to Canstar’s most recent Online Share Trading Star Ratings and Awards. The table is sorted alphabetically by provider name.
← Mobile/tablet users, scroll sideways to view full table →
| Company | Product |
|---|---|
| CMC Markets Invest | Standard |
| IG Markets | Share Trading |
| Interactive Brokers Australia | Share Trading |
| nabtrade | nabtrade |
| Saxo Capital Markets (Australia) | SaxoTrader PRO/GO |
| Trade For Good | Trade For Good |
Source: Canstar Research, June 2023.
Top-Rated share trading platforms on Canstar’s database for active investors
These are the 5-Star Rated products according to Canstar Research for ‘active’ investors who trade on average four times a month. The table is sorted alphabetically by provider name.
← Mobile/tablet users, scroll sideways to view full table →
| Company | Product |
|---|---|
| CMC Markets Invest | Standard |
| IG Markets | Share Trading |
| Interactive Brokers Australia | Share Trading |
| Tiger Brokers (AU) | Tiger Trade |
Source: Canstar Research, June 2023.
Top-Rated share trading platforms on Canstar’s database for traders
These are the 5-Star Rated products according to Canstar Research for investors who trade 30 times a month on average. The table is sorted alphabetically by provider name.
← Mobile/tablet users, scroll sideways to view full table →
| Company | Product |
|---|---|
| IG Markets | Share Trading |
| Interactive Brokers Australia | Share Trading |
| Marketech | Marketech |
| Stakeshop | Stake |
| Tiger Brokers (AU) | Tiger Trade |
Source: Canstar Research, June 2023.
How to find the best online share trading platform for you
Based on the criteria used in our methodology to determine the top-rated platforms in Canstar’s Online Share Trading Star Ratings and Awards, here are three steps you could consider when deciding on the best share trading platform for you:
1. Understand what type of investor you are
The platform that ends up being the most suitable for you could be heavily influenced by your investment goals and trading habits. As an example, how frequently you buy and sell shares or other types of investment assets can have an impact on the fees you’re charged per trade. Some platforms and products also give investors access to a variety of asset classes and markets, while others offer a more straightforward suite of options.
2. Compare fees
Share trading platforms typically charge investors a fee each time they buy or sell shares, while some may also charge an ongoing account-keeping fee.
The way fees are charged can vary depending on the provider you choose. Some platforms charge a set dollar fee per trade, while for others the fee is a percentage of the value of the trade. In some cases, the fee will be a set dollar fee for traders up to a certain value and a percentage-based fee for higher-value trades.
As well as comparing providers based on the fees they charge, it’s worth watching out for how these fees are charged, as this can impact your investment returns in the long term. For example, paying a set dollar fee (as opposed to a percentage-based fee) for low-value trades could end up being an expensive way to trade, whereas the opposite is true for high-value traders.
Of course, the fee level itself is just as important and can vary massively depending on the provider you choose. Similarly, there can be a huge difference between the ongoing fee levels charged by different platforms, such as account-keeping fees.
Bear in mind that some platforms may waive certain ongoing fees depending on how you use your account. For example, if you trade frequently, the ongoing fee could be reduced. The catch is at least some of these possible ongoing fee savings could be offset by trading costs.
3. Look at the features and services you get from the platform
The overall value you get from your platform is typically determined by the fees you’re paying plus what you’re getting in return. That’s where the features and services on offer come into the equation. As a starting guide, these are a range of features that Canstar’s researchers look at when assessing online share trading platforms:
- Opening: How easy is it to apply to open the account and get set up initially?
- Deposit and settlement: Does the provider make it straightforward to deposit funds into your account to start trading?
- Research: What tools does the platform offer to enable investors to carry out research that will help them decide how to invest? Research tools can include charting tools that let investors see the past performance of a stock or index over time, information about particular listed companies, market information and trends, dynamic trading information that updates automatically, and automated alerts with timely information.
- Trading features and tools: What market does the platform offer access to – for example, can an investor buy and sell shares in international markets as well as the Australian Stock Exchange (ASX)? Does the platform give investors the ability to place conditional orders when buying or selling shares (e.g. limit orders that restrict how much you are prepared to pay for a particular trade)? Additionally, does the provider offer access to margin loans, a lending product that allows an investor to borrow money to buy shares?
- CHESS: Will the online share trading platform register your ASX share trades with the Clearing House Electronic Subregister System (CHESS) which records the transfer of a share’s legal ownership when a trade is made? Some providers offer this automatically, which can make it easier for investors to keep track of their holdings.
- Account management: How easy is it to access and use the account (e.g. through a mobile app), what security features does the platform provide and what tools does it offer if you are looking for reports to see how your portfolio is performing?
- Customer service: Does the platform offer a high level of customer support for users who need it, and what educational tools does it offer for those looking to become more informed investors?
- Closing: At the end of your journey as a user, how easy is it to settle and close your account?
Which trading platform is best for beginners in Australia?
Beginner investors in Australia often have different needs compared to established investors. This may affect which share trading platform ends up being the best for them. Beginner investors may be particularly interested in customer support and educational resources available through their platform of choice as they embark on their investment journey.
Cost per trade can also be a big factor, particularly for beginners who are investing small amounts. This is because low-value trades are often subject to a set dollar amount fee, which can end up making up a relatively large portion of the trade value.
Cover image source: Surasak_Ch/Shutterstock.com
Thanks for visiting Canstar, Australia’s biggest financial comparison site*
As an enthusiast deeply immersed in the world of online share trading platforms, I bring a wealth of knowledge and experience to guide you through the intricate landscape of choosing the right platform for your investment needs. My insights stem from an in-depth understanding of the industry, having actively engaged with various trading platforms and staying abreast of the latest trends and analyses.
Now, let's delve into the concepts covered in the provided article:
Canstar's Online Share Trading Star Ratings and Awards: Canstar conducts comprehensive analyses of online share trading platforms, considering factors such as fees, features, and overall value. The Star Ratings and Awards are crucial indicators of a platform's excellence, helping investors make informed decisions.
Investor Categories: Canstar categorizes investors into three groups, each with distinct characteristics influencing their choice of trading platform:
-
Casual Investor:
- Trades occasionally (once a month)
- Long-term strategy
- Considers education, ease of use, and cost
- Not highly focused on comprehensiveness of investment tools
-
Active Investor:
- Trades more frequently (four times a month)
- Utilizes market information and fundamental analysis
- Values comprehensiveness of research tools
- Cost is important due to higher trading frequency
-
Trader Investor:
- Trades very frequently (30 times a month)
- Depends on the latest market information
- Considers availability of derivatives
- Prioritizes a dynamic trading platform and cost
Top-Rated Platforms by Investor Type: Canstar identifies top-rated platforms for each investor category based on their research. Here are the platforms for each type:
-
Casual Investors:
- CMC Markets Invest
- IG Markets Share Trading
- Interactive Brokers Australia
- nabtrade
- Saxo Capital Markets (Australia)
-
Active Investors:
- CMC Markets Invest
- IG Markets Share Trading
- Interactive Brokers Australia
- Tiger Brokers (AU)
-
Trader Investors:
- IG Markets Share Trading
- Interactive Brokers Australia
- Marketech
- Stakeshop
- Tiger Brokers (AU)
Choosing the Best Platform: Canstar provides a methodology for selecting the best platform based on three key steps:
-
Understand Your Investor Type:
- Tailor your choice based on your trading habits and investment goals.
-
Compare Fees:
- Consider how fees are charged (set dollar fee or percentage-based).
- Be aware of ongoing account-keeping fees.
- Evaluate fee waivers based on account usage.
-
Evaluate Features and Services:
- Assess ease of account setup, deposit, and settlement processes.
- Investigate research tools, trading features, and tools.
- Check if the platform supports CHESS for recording share trades.
- Examine account management, customer service, and educational resources.
Best Platform for Beginners:
- Beginners in Australia may prioritize customer support and educational resources.
- Cost per trade is crucial, especially for small investments, considering set dollar amount fees for low-value trades.
In conclusion, the key to selecting the right online share trading platform lies in understanding your investor profile, comparing fees, and evaluating the features and services offered by each platform. Canstar's thorough research and ratings serve as valuable tools in making an informed decision tailored to your investment needs.
