An educational comparison of the main Australian retail brokers - fees, features, and who each suits.
Choosing an Australian broker isn't usually a "best" decision - it's a "best for what you're doing" decision. Someone making a single $50,000 trade once a year has very different needs to someone auto-investing $500 a month into an ETF. Here's how the main retail brokers stack up across the criteria that actually matter, with the trade-offs spelled out.
| Broker | ASX trade fee (indicative) | CHESS sponsored? | US shares? | Best for |
|---|---|---|---|---|
| CommSec | $5-29.95 depending on size | Yes | Yes (CommSec International) | CBA customers, full-service users who want research and integration |
| Stake | $3 flat (under $30k) | No (custodial for ASX) | Yes - market leader for US shares | US share investors, low-cost ASX traders |
| Pearler | $6.50 flat (auto-invest cheaper) | Yes | Yes | Set-and-forget ETF auto-investors, FIRE community |
| Selfwealth | $9.50 flat | Yes | Yes | Direct ASX investors wanting CHESS at a flat fee |
| CMC Markets | Free first ASX trade per day up to $1k, then 0.075% | Yes | Yes | Beginners testing the waters; cost-sensitive small-trade investors |
| Superhero | $2 ASX (under $100), $5 from $100, free for ETFs (some) | No (custodial) | Yes | Small-trade investors, ETF buyers willing to use custodial model |
Fees move regularly. Always check the broker's current schedule before committing - the rates above are indicative as of writing and the competitive landscape between Australian brokers shifts.
CHESS sponsorship. CHESS-sponsored shares are held in your name on the ASX subregister via a Holder Identification Number (HIN). Custodial structures hold shares on your behalf via a third party. Both are ASIC-regulated and legal. CHESS provides easier broker transfers, cleaner ownership records, and corporate action handling under your own name. Custodial structures are typically cheaper but you don't have a HIN. For long-term buy-and-hold investing, CHESS is usually worth it.
Total cost, not headline brokerage. A $3 brokerage with a 1.0% FX spread on US shares is more expensive than a $9.50 brokerage with no FX. For ASX-only investing, brokerage dominates. For US or international, FX spreads dominate, especially on smaller trades.
Workflow fit. If you genuinely will set up monthly auto-buys of VAS and VGS and never touch the account, Pearler or CMC fit. If you want a research interface and integration with banking, CommSec fits. If you mostly trade US shares and don't care about CHESS, Stake fits.
This isn't a recommendation to buy any specific ETF, stock, or use any specific broker. Broker choice should reflect your circumstances and goals. ASIC's Moneysmart publishes neutral guidance on choosing a broker and what to look for.
Disclaimer: This article provides educational information about Australian retail brokers and is not financial product advice or a recommendation. Fees, features and offers change frequently - always check the broker's current Product Disclosure Statement before opening an account. For neutral guidance, see ASIC's Moneysmart.