Brokerage in Australia: Guide to Changes and How It Works (2025)

In Australia, the world of brokerage is rapidly evolving. Whether you’re buying shares, securing a mortgage, or investing in property, brokers play a pivotal role—connecting everyday Australians with financial products, streamlining transactions, and sometimes even shaping your wealth journey. With 2025 ushering in new regulatory tweaks and digital innovations, understanding brokerage is more crucial than ever.

What Exactly Is Brokerage?

At its core, brokerage refers to the services provided by an intermediary (a broker) who connects buyers and sellers in financial markets or assists with complex transactions like securing a home loan. Brokers can operate in various sectors, including:

• Stockbroking – Facilitating trades of shares, ETFs, and other securities on the ASX or international exchanges.
• Mortgage broking – Helping borrowers find and apply for home loans, often comparing dozens of lenders.
• Insurance broking – Sourcing insurance policies tailored to a client’s needs.
• Business/commercial broking – Guiding business owners through finance, mergers, or acquisitions.

Brokers typically earn a commission or fee for their services, paid either by the client or the financial institution they connect you with. In Australia, brokers must be licensed and comply with regulations enforced by ASIC (Australian Securities and Investments Commission) and, for credit, by the Australian Credit Licence framework.

What’s New for Brokerage in 2025?

Brokerage is not a static industry—2025 brings a suite of regulatory updates and market shifts impacting both brokers and consumers:

• Open Finance Expansion: The Consumer Data Right (CDR) regime, which started with banking and energy, is now rolling out to superannuation and insurance in 2025. Brokers can access more of your financial data (with consent), allowing for deeper comparisons and personalised recommendations.
• Enhanced Broker Disclosure Rules: The Australian government has mandated even clearer disclosure of broker commissions and relationships, especially in mortgage and insurance broking. Consumers will now receive a standardised summary of broker incentives and potential conflicts before proceeding.
• Digital Brokerage Growth: More Australians are using digital-first brokerages for share trading and even home loans. Platforms like Stake, SelfWealth, and UpBank’s new mortgage broking arm are leveraging technology to lower fees and speed up approvals.
• Responsible Lending Tweaks: In 2025, ASIC’s responsible lending guidelines have been further refined. Mortgage brokers must now demonstrate even stricter due diligence in matching borrowers with appropriate loan products, especially with rising interest rates and cost-of-living concerns.

These changes mean Australians can expect more transparency, better digital tools, and in theory, a higher standard of broker advice.

Choosing the Right Broker: What to Watch For

With so many brokerage options, finding the right fit requires careful consideration. Here’s what to weigh up:

• Licensing and Accreditation: Check that your broker is listed on ASIC’s Professional Registers. Mortgage brokers should be members of the MFAA or FBAA.
• Fee Structure: Ask upfront how your broker is paid. Some charge flat fees, while others rely on commissions from lenders or product providers.
• Product Range: Does the broker offer products from a wide panel of institutions, or are they limited to a few?
• Digital Experience: Can you access real-time updates, digital document signing, and online comparison tools?
• Reviews and Reputation: Look for independent reviews, complaints history, and word-of-mouth recommendations.

For example, with the CDR open finance reforms, some mortgage brokers now integrate your real-time bank statements for instant pre-approval checks, shaving days off the traditional paper chase. Meanwhile, digital share brokerages are slashing transaction costs and offering fractional investing, opening the door for younger investors.

The Real-World Impact: Brokerage in Action

Consider Claire, a first-home buyer in Sydney. In 2025, she approaches a mortgage broker who, with her consent, accesses her banking and superannuation data via CDR. This enables the broker to instantly compare dozens of loan products, factoring in not just interest rates but also offset account features and lender policies. The broker’s digital platform pre-populates much of Claire’s application, and Claire receives a clear disclosure of broker fees and commissions before she signs. As a result, Claire secures a competitive home loan with minimal hassle and full transparency.

Or take Ravi, an aspiring investor. He uses a digital brokerage app that lets him trade ASX and US shares for a flat $5 fee, with real-time market data, tax reporting tools, and zero paperwork. Ravi’s broker also provides educational content and regular compliance updates, ensuring he stays ahead of regulatory changes.

Looking Ahead: Is a Broker Right for You?

Brokerage is evolving fast, but its core benefit remains: expert navigation of complex financial products and markets. The 2025 regulatory updates mean brokers must be more transparent, more accountable, and more digitally savvy than ever. Whether you’re investing, borrowing, or insuring, choosing a well-accredited, tech-enabled broker could be your smartest financial move in the year ahead.