Your trading platform — your broker — is the gateway between you and the sharemarket, and the one you choose shapes what you pay, what you can invest in, and even who legally owns your shares. With a crowded field of established banks, low-cost challengers and app-based newcomers, the choice can feel overwhelming. The good news is that a handful of clear criteria cut through the noise.
This guide is a neutral framework for choosing a broker rather than a live price list — brokerage fees and features change often, so always confirm current pricing on each provider’s own site before signing up. If you’re just getting started, pair this with our pillar guide on how to invest in shares in Australia and our step-by-step how to buy shares in Australia.
What a Trading Platform Actually Does
You can’t trade directly on the ASX yourself. A broker holds your account, routes your buy and sell orders to the market, and settles the trades. Beyond that core function, platforms differ enormously in cost, the range of markets they reach, the tools they offer, and — crucially — how they hold your shares.
The Criteria That Matter
Brokerage Fees
This is the headline cost: what you pay each time you buy or sell. Structures vary:
- Flat fee per trade — a fixed dollar amount regardless of trade size (common, and predictable).
- Percentage-based — a percentage of the trade value, which can get expensive on larger trades.
- Zero or low brokerage — some platforms advertise free or very cheap trades, often on the custodial model or with other costs elsewhere.
Watch for the small print: currency conversion (FX) fees on international trades, inactivity fees, withdrawal fees and data charges can all add up. Under ASIC’s disclosure expectations, platforms should make these clear — read the fee schedule in full.
CHESS-Sponsored vs Custodial
One of the most important and least understood differences. Under CHESS sponsorship, your shares are registered in your own name with a Holder Identification Number (HIN); under the custodial model, the broker holds them on your behalf. This affects ownership, portability between brokers, and what happens if the broker fails. It’s important enough that we’ve written a full explainer: CHESS-sponsored vs custodian. Decide which model you want before choosing a platform.
Market Access
Do you only want ASX-listed shares and ETFs, or also international markets like the US? Some platforms are ASX-only; others offer global exchanges, and a few support fractional shares (buying part of a single share), which suits smaller, regular investments.
Features and Tools
Consider what you’ll actually use: research and analyst data, charting, automated recurring investments, tax reporting, mobile app quality, and customer support. A beginner investing monthly into ETFs has very different needs from an active trader.
Security and Regulation
Only use an ASIC-licensed broker. Look for strong security basics — two-factor authentication, encryption — and check how client money and assets are held and protected.
A Comparison Framework
Rather than a table of prices that dates within weeks, score each platform you’re considering against these criteria:
| Criteria | What to compare | Why it matters |
|---|---|---|
| Brokerage per trade | Flat fee or % | Your recurring cost to trade |
| Ownership model | CHESS-sponsored or custodial | Ownership, portability, protection |
| FX / other fees | Currency, inactivity, withdrawal | Hidden costs erode returns |
| Market access | ASX only vs international | Determines what you can buy |
| Fractional shares | Supported or not | Helps small, regular investing |
| Auto-investing | Recurring buys available | Great for dollar-cost averaging |
| Reporting | Tax and CGT statements | Saves time at tax time |
| App & support | Usability, help channels | Day-to-day experience |
| Licensing | ASIC-licensed | Non-negotiable |
Matching a Platform to Your Style
- A long-term ETF investor contributing monthly should prioritise low or zero brokerage, auto-investing and good reporting — and may accept the custodial model for its low costs and fractional shares. See our guide to the best ETFs in Australia.
- An investor who values direct ownership should favour a CHESS-sponsored broker so their shares sit on the ASX register in their name and stay portable.
- A globally minded investor needs strong international market access and competitive FX fees.
- An SMSF trustee needs a platform that supports accounts in the fund’s name with clean reporting — see investing in shares through an SMSF.
Established Banks vs Low-Cost Challengers
Broadly, the market splits into two camps. The big-bank and full-service brokers tend to offer CHESS sponsorship, seamless integration with a linked bank account, strong local support and deep research — but often at higher brokerage. The low-cost and app-based challengers compete hard on price, frequently offering very cheap or zero brokerage, fractional shares and modern apps, though many use the custodial model and some charge FX or other fees elsewhere. Neither camp is universally better: a hands-off investor drip-feeding into ETFs may love a cheap challenger, while someone who wants their shares registered in their own name and values local support may prefer an established broker. Weigh the whole package — brokerage, ownership model, hidden fees and features together — rather than fixating on the headline trade cost.
Don’t Forget the Tax Angle
Your choice of broker has tax consequences. Good CGT reporting makes tax time far easier, and the ownership model matters: leaving a custodial broker can force a sale that triggers capital gains tax. Holding shares more than 12 months secures the 50% CGT discount for individuals, and platforms that track your cost base and franking credits save real effort — see franking credits explained and CGT on shares.
Common Pitfalls
- Chasing “free” brokerage without checking FX, inactivity and withdrawal fees, or the ownership model.
- Ignoring portability. A cheap custodial broker can be costly to leave if switching forces a sale.
- Overpaying on small trades with percentage-based brokerage.
- Picking on features you won’t use. Advanced tools are wasted on a set-and-forget ETF investor.
- Skipping the licence check. Always confirm the platform is ASIC-licensed.
This article is general information only and not financial or tax advice; consider your own circumstances and speak to a licensed adviser or the ATO before acting. Fees and features change — verify current details with each provider before opening an account.
The best platform is the one whose costs, ownership model and features fit how you actually invest. Score your shortlist against the framework above, decide on CHESS versus custodial, and confirm current pricing directly. Then our guide on how to buy shares in Australia walks you through opening the account and placing your first trade.