Discount Brokers Australia 2025: Affordable Investing & Key Trends

Discount brokers have fundamentally changed the Australian investment landscape, making share trading more accessible and affordable for everyday Australians. As we move into 2025, the rise of these platforms continues to drive innovation, competition, and regulatory attention. Whether you’re a first-time investor or a seasoned trader, understanding how discount brokers work — and how they differ from traditional brokerages — is essential for navigating today’s fast-moving markets.

What Is a Discount Broker?

A discount broker is a financial services provider that executes buy and sell orders for securities, such as shares and ETFs, at a significantly lower cost than full-service brokers. Unlike traditional firms, discount brokers typically don’t offer in-depth investment advice, research, or portfolio management — instead, they focus on streamlined, digital trading and low fees.

• Lower brokerage fees: Trades can cost as little as $0 to $10, compared to $50+ for full-service brokers.

• Online-only access: Most platforms are app- or web-based, with intuitive dashboards and real-time market data.

• No-frills service: Investors manage their own portfolios and make their own decisions.

Some of the most popular discount brokers in Australia in 2025 include Stake, Superhero, SelfWealth, and the recently launched CommSec Mini, each offering unique features and pricing models.

The 2025 Discount Broker Landscape: Trends and Policy Updates

Australian investors are seeing more choice and transparency than ever before. In 2025, several key trends and regulatory changes are shaping the sector:

• Fee Wars Intensify: Competition has driven brokerage fees to historic lows. Some platforms now offer $0 brokerage on ASX-listed ETFs, subsidising costs through foreign exchange spreads or premium subscriptions.

• Fractional Investing: Newer brokers allow investors to buy fractions of high-priced shares, making it possible to own a slice of giants like CSL or BHP for as little as $5.

• Regulatory Scrutiny: ASIC’s 2025 reforms require all brokers to clearly disclose fee structures, custodial arrangements, and how client assets are held. This follows a 2024 ASIC review that found confusion around how discount brokers safeguard client money and shares.

• International Access: More platforms now let Australians trade US, UK, and Asian stocks with low or no additional brokerage, opening global opportunities for local investors.

For example, the 2025 introduction of the Investor Protection Enhancement Act now obligates all brokers to participate in the new National Investor Compensation Scheme, providing additional peace of mind for retail clients in the event of broker insolvency.

Pros and Cons of Using a Discount Broker

While the appeal of low-cost investing is strong, discount brokers aren’t for everyone. Here’s a balanced look at the benefits and potential drawbacks:

Pros:

  - Significantly lower trading costs, letting you invest more of your money.

  - Fast and easy account setup — often within minutes.

  - Access to modern tools, such as mobile trading, price alerts, and instant funding.

  - Growing availability of educational content for self-directed investors.

Cons:

  - No personalised investment advice or portfolio management — you’re on your own for research and strategy.

  - Customer support may be limited to chat or email.

  - Some platforms use custodial models, meaning you don’t technically own the shares in your name (important for voting rights and tax).

  - Foreign currency conversion fees can add up for international trades.

For instance, a young investor using Superhero to build an ETF portfolio can benefit from $0 brokerage on certain funds, but should be aware of the potential limitations around CHESS sponsorship and how shares are held.

How to Choose the Right Discount Broker for You

With so many options in 2025, it’s important to compare features and fees to find a platform that matches your goals:

• Check brokerage and FX fees — watch for hidden charges on international trades.

• Decide if you want direct CHESS-sponsored ownership or are comfortable with a custodial model.

• Explore the platform’s range of available markets, including ASX, US, and global shares.

• Test the platform’s user experience: is the app reliable and easy to navigate?

• Look for educational resources and community features if you’re a beginner.

Ultimately, the best discount broker is the one that fits your investing style, budget, and need for support.