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Thadeus Geodfrey is an experienced and celebrated writer and self-taught trader specialising in cryptocurrencies and forex. Market analysis, identifying fraudulent brokers, and security are his cup of tea. At BrokerRaters Thadeus develops educational materials and user-guides, offer market insights, ensures our content conforms to the best standards. Join Thadeus to succeed in your trading endeavours.
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Low costs are a trader’s best friend. That is because they translate to reduced expenses and increased potential profit margins. With that in mind, as a trader from Australia, you are lucky enough to have access to a plethora of discount brokers with incredibly low costs. But that comes with one notable downside. Many of the service providers within easy reach have poor services, slow execution speeds, deplorable security, and many other shortcomings.
Since we value you, our reader, we’ve decided to help you avoid poor service providers by listing the best discount brokers in Australia. We handpicked These brands after analyzing and comparing numerous service providers using several key factors, from regulation and security to asset range, fees, and online reputation.
List of the Cheapest Brokers
- Interactive Brokers – Overall Best Discount Broker in Australia
- Saxo – Best Discount Broker for High-Volume Traders in Australia
- OANDA – Best Low-Cost Broker for Australian Forex Traders
- eToro – Best Discount Broker for Copy Traders in Australia
- AvaTrade – Cheapest Broker Australia for Beginners
In This Guide
Australian Discount Brokers: Comparison Table
To help you find the best discount broker in Australia, our experts have compared our chosen providers in the tables below. We’ve factored in the most critical factors in the universe of online trading, from licensing, regulation, and authorization to the availability of customer service teams and support for demo trading.
Admittedly, none of the service providers recommended here can be found wanting where such factors are involved. For starters, they are all licensed and regulated by the most respected authorities in the world, starting with ASIC. They also have a superb online and offline reputation and outstanding customer support service.
However, several minute differences make each of these service providers special in their own way. For instance, some offer 24/5 support service while their counterparts’ representatives are available 24/7. That’s just one example. We have highlighted other key aspects in the first comparison table of the best discount brokers Australia.
| Cheapest Online Broker Australia | License & Regulation | Support Service | Software | Payment Method | Demo Account |
|---|---|---|---|---|---|
| Interactive Brokers | ASIC, FCA, MAS, FSCA, CBI, CySEC, PFSA, B.V.I FSC, FSA, ADGM, ISA | 24/5 | WebTrader, AvaOptions, AvaTrade App, Mac Trading, MT4, MT5, Automated Trading | Credit/debit cards, Neteller, Skrill, Wire transfer, WebMoney | Yes |
| Saxo | ASIC, FCA, FSA, MAS, FINMA, JFSA, SFC, AFM, FSMA | 24/5 | SaxoTraderGo, SaxoTraderPRO, SaxoInvestor | Credit/debit cards, VAN bank transfer, telegraphic transfer, electronic funds | Yes |
| OANDA | ASIC, FCA, SEC, B.V.I FSC, CySEC | 24/5 | Mobile, Web, MT4, TradingView | Credit/debit cards, online banking, wire transfer, BPay | Yes |
| eToro | ASIC, FCA, MAS, CySEC, FSCA, SFSA ADGM, MFSA, FSAS, GFSC, SEC | 24/5 | eToro investing platform and app, Multi-asset platform, Social Trading, Copy Trader, Smart Portfolios | Credit/debit cards, Bank transfer, Klarna, PayPal, Skrill, Neteller | Yes |
| AvaTrade | ASIC, FCA, MAS, FSCA, CBI, CySEC, PFSA, B.V.I FSC, FSA, ADGM, ISA | 24/5 | WebTrader, AvaOptions, AvaTrade App, Mac Trading, MT4, MT5, Automated Trading | Credit/debit cards, Neteller, Skrill, Wire transfer, WebMoney | Yes |
Brokers Short Overview
For good reasons, we never forget to compare different providers’ fees and assets. Some of the platforms available today claim to be low cost brokerage Australian firms but charge high fees. We are here to help you avoid these masqueraders and find a legit cheapest broker Australian firm. Not to mention, we understand that your peace of mind and overall success, in the long run, hinges upon whether or not you will find a service provider with your favorite financial instruments.
Let’s break down some of the fees and assets we stumbled upon while evaluating the cheapest brokerage Australian companies.
Fees
| Cheapest Online Broker Australia | Minimum Deposit Requirement | Commission/ Spreads | Deposits/ Withdrawals | Inactivity Fee |
|---|---|---|---|---|
| Interactive Brokers | $0 | From 0.08% | From $10 withdrawal fees | $0 |
| Saxo | $0 | From 0.03% | $0 | $0 |
| OANDA | $0 | From $0 | $20 withdrawal fee | $10 monthly |
| eToro | $50 | From 0% | Free | $10 monthly |
| AvaTrade | $100 | From 0.13% | Free | $50 after every 3 consecutive months of inactivity |
Assets
| Cheapest Online Broker Australia | Stocks | Forex | Crypto | Commodities | Indices | ETFs | Options |
|---|---|---|---|---|---|---|---|
| Interactive Brokers | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Saxo | Yes | Yes | No | Yes | Yes | Yes | Yes |
| OANDA | Yes | Yes | Yes | Yes | Yes | Yes | No |
| eToro | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| AvaTrade | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Our Expert Opinion about Low-Cost Brokerage
Our opinion of the service providers we are about to review is constant: they are best discount brokers in Australia. But that doesn’t mean they are all ideal for you. These service providers have their strengths and weaknesses. You must analyze them and gauge their alignment with your expectations, goals, and needs. The minireviews below should help you to that end.
1. Interactive Brokers – Overall Best Discount Broker in Australia
After assessing countless service providers, we’ve ranked Interactive Brokers as the best discount broker in Australia. The company has ultra-low fees and charges compared to its competitors. For starters, it doesn’t charge deposit fees. In most cases, the costs you’ll incur while funding your IBKR account are those mandated by your bank or any other payment service provider.
When it comes to spreads and commissions, IBKR is very pocket-friendly. You can trade forex pairs with the company’s platform and enjoy competitive spreads as low as 0.1 pip. Also, you can trade commission stocks and ETFs with low commissions ranging from $0.0005 to $0.0035 on over 90 market centers. Options and futures are also offered on the platform, with tight commissions starting from $0.15 and $0.25, respectively.
Costs aside, IBKR is an outstanding broker because it offers an unmatched range of products. There are over 18,000 US and European stocks alone. Its users can also trade thousands of other instruments, including spot currencies, mutual funds, bonds, and ETFs. Additionally, Interactive Brokers is an exceptional ETF platform for low-cost trading, making it an ideal choice for cost-conscious investors.
And you don’t have to wing trading and investing anymore. You can use Interactive Brokers’ GlobalAnalyst feature to find the right investment opportunities in a heartbeat.
In addition to being an incredible discount trading platform, Interactive Brokers ranks among the most beginner-friendly sites in Australia. The broker offers numerous educational resources, including the IBKR Campus, Traders’ Academy, IBKR Podcasts, and webinars. The company’s proprietary campus and academies alone have countless top-quality courses and lessons that newbies can access online for free.
Interactive Brokers
✔$0 minimum deposit requirement
✔No account inactivity fees
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement
- Competitive spreads for currency pairs starting from 0.1 pip
- Low commissions, starting from $0.0005 for stocks
- Tens of thousands of tradable financial assets
- Excellent support service
- A commendable array of educational resources
- No inactivity fee
Cons
- No third-party trading platforms like MT4
- Higher withdrawal fees for bank transfers
- Zero-commission stocks are exclusively for US residents
After conducting thorough research and extensive assesments, we can confidently categorize Interactive Brokers as one of the most affordable service providers out here. As we’ve already mentioned, this company has no minimum deposit requirement. Plus, it allows traders to fund their accounts with payment methods like ACH and wire transfer at no additional cost. We also highly recommend IBKR because, unlike other brokers, it doesn’t require traders to pay inactivity fees for dormant accounts.
Here’s an overview of the Interactive Brokers fees and charges our team unearthed during our evaluation and exploration:
| Type | Fee |
|---|---|
| Account opening and maintenance | $0 |
| Deposit | $0 |
| Withdrawal | Yes |
| Inactivity | $0 |
| Overnight charges | Yes |
| Currency conversion | 0,5% |
2. Saxo – Best Discount Broker for High-Volume Traders in Australia
We recommend Saxo to all high-volume Australian traders searching for an exceptional discount broker. This broker has tiered pricing structures that favor high volume traders. For instance, the brokers’ VIP users have access to extra low commissions starting from 0.03% and 1 AUD per contract on stocks and futures, respectively.
As a high-volume trader, you can also trade forex pairs with Saxo and enjoy lower spreads starting from 0.4 pips. This is an incredible deal considering that the spreads for standard user begin at 0.6 pips. What’s more, you can diversify your portfolio with commodities, ETFs, and listed options, with tight spreads and commissions starting from $0.13, 0.03%, and 0.75, respectively.
Please note that Saxo’s best offerings are for VIP customers. To be eligible for them, you must meet certain prespecified requirements. First, you must hit or exceed the mandated minimum funding of AUS 1.5 million.
Besides low spreads, commissions, and costs, as a high-volume trader on Saxo’s VIP program, you get to enjoy priority support. That means your issues and concerns will be addressed promptly by the brokers’ word-class support representatives. You’ll also get the chance to plan meetups and discuss trading-related topics with exceptional professionals known as SaxoStrats. Finally, the broker will provide you with exclusive offers and invitation to prestigious events money can’t buy.
Saxo is also on our list of recommended service providers courtesy of its impressive product range. As a high-volume trader, you can trade everything from forex pairs to CFDs on over 8,800 instruments with this fantastic discount broker. As if that isn’t enough, Saxo offers you the chance to invest in Australian and international bonds, stocks, ETFs, and many other assets.
Pros & Cons
Pros
- Lower fees and prices for high-volume traders
- VIP members have access to prestigious events and offers
- No minimum deposit requirements
- Offers tens of thousands of tradable instruments
- Traders can invest in stocks, ETFs, bonds, etc.
- High-volume VIPs have access to priority support
Cons
- Only offers proprietary trading software
- High minimum funding requirement for high-volume VIP traders
3. OANDA – Best Low-Cost Broker for Australian Forex Traders
Are you looking for a low-cost broker that is ideal for forex traders in Australia? Check out OANDA before going any further. This service provider lives up to its reputation as a low-cost broker by having some of the friendliest fees and charges. Let’s begin with spreads and commissions.
The OANDA trading platform has 70+ currency pairs for CFD traders. They range from AUD/USD and USD/CAD to USD/TRY, GBP/AUD, and AUD/JPY. Popular pairs like EUR/GBP and AUD/USD have competitive spreads of 0.7 and 0.8 pips, respectively. Since the broker supports variable spreads, the numbers can dip significantly during peak hours.
Anyone can start trading forex pairs with OANDA, regardless of financial condition. Why? This broker has no minimum deposit requirement. The amount you can deposit the first time will primarily depend on your chosen funding method, not OANDA’s policies. Moreover, you won’t have to part with a dime in deposit fees.
While trading forex with OANDA, diversifying your portfolio will be a dream. This broker offers many other tradable instruments, from indices and precious metals to bonds, cryptos, and commodities. OANDA’s customers also have access to the company’s proprietary investment platform, where investment products like shares and interest rates are available.
Last but not least, we consider OANDA one of the brokers in Australia due to its selection of trading platforms. The company has provided powerful web and mobile platforms tailored for both newbies and gurus. Its customers can also access two of the most popular third-party trading software today: MetaTrader 4 and TradingView.
OANDA
✔Offers a negative balance protection
✔Customizable trading platform
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement
- No additional deposit fees
- Offers 70+ popular currency pairs
- Users have access to MT4 and TradingView
- Traders can invest in stocks and other assets
Cons
- No fixed spreads for currency pairs
- High withdrawal fees compared to its peers
- $10 monthly inactivity fee
OANDA broker has a clear fee structure with no hidden charges. This makes it easier for you to know how much you will be paying once you make a commitment. Some of the fees to incur at OANDA include the following:
| Trading and Non-Trading Charges | Details |
|---|---|
| Account Opening | $0 |
| Management Fee | $0 |
| Minimum Deposit Requirement | From $0, depending on your jurisdiction |
| Commission | From 0% on US-listed shares |
| Spreads | From 0.6 points |
| Deposits and Withdrawals | Free deposits. Withdrawal fees apply based on the payment method used |
| Inactivity | $10 after 12 months |
| Overnight Funding | Varies based on global market conditions |
| Currency Conversion Fee | Calculated by applying a 0.5% mark-up or mark-down |
4. eToro – Best Discount Broker for Copy Traders in Australia
Copy trading enthusiasts who need good discount brokers should pay eToro a visit. That is advisable because, first and foremost, eToro users have access to the company’s proprietary CopyTrader ™ system. It allows avid traders and investors to copy the most profitable eToro users.
One of the best things about copy trading with eToro is you can do it for free at no additional costs. Moreover, you can start and stop copying top performers at any time, without fretting over unnecessary restrictions. The system also allows you to enjoy the perks of automated copy trading, with every copied trade replicated to your portfolio promptly without requiring your intervention.
We also support copy trading with eToro because this broker supports social trading through its infamous community. The eToro community is made up of over 35 million people. You can join it today and, through its social trading and investing feature, learn from the best, share your wisdom, and discuss pertinent matters with other traders and investors.
Copy trading and social investing aside, trading with eToro is an excellent idea for many other reasons. For starters, the broker’s platform has over 6,000 tradable instruments, including popular shares, commodities, and currency pairs. Furthermore, while trading with eToro, you can also invest in diverse assets, including thousands of popular stocks like AAPL, META, and CPU.AS. You can also buy cryptocurrencies like Bitcoin, Shiba Inu, and Flare from the eToro exchange.
eToro
✔ User-friendly trading platform
✔ Over 6000 trading instruments
Pros & Cons
Fees
Trading Assets
Pros
- Users can leverage excellent copy and social trading functionalities
- Simple, newbie-friendly user interface
- Supports thousands of tradable securities
- Investment enthusiasts have access to stocks, crypto, etc.
- Reasonably low minimum deposit requirement
- A broad range of educational resources
Cons
- $10 monthly account inactivity fee
- Limited payment methods for withdrawals
eToro has a transparent fee structure that is easy to understand and helps you plan accordingly. From our analysis, we discovered the following trading and non-trading eToro fees.
| Trading and Non-Trading Charges | Details |
|---|---|
| Account Opening | $0 |
| Management Fee | $0 |
| From $50, depending on your jurisdiction | 0.6 |
| Commission | From 0% on stocks and ETF trading |
| Spreads | From 1 pip on major currency pairs |
| Deposits and Withdrawals | $5 withdrawal |
| Inactivity | $10 monthly |
| Currency Conversion | 1.5% or 3.0%, depending on the currency or payment method |
| Overnight Funding | Varies based on global market conditions |
| Copy Trading | Free |
5. AvaTrade – Cheapest Broker Australia for Beginners
AvaTrade is the best low-cost broker for beginners. We’ve declared that because, first, this service provider has friendly charges and costs. They are definitely not the lowest, but, compared to other brands, AvaTrade’s figures are reasonable and very competitive.
Take spreads and commissions as an example. Trading forex pairs and stocks with AvaTrade comes with friendly spreads starting from 0.9 pips for popular pairs like EUR/USD and 0.13% for stocks like Microsoft and Apple. You can also trade indices, commodities, and crypto CFDs with this broker and enjoy competitive commissions starting from 0.004 over market, $0.002 over market, and 0.10%, respectively. FX options, ETFs, and bonds also have super-competitive spreads and commissions.
But the main reason we recommend this cost-friendly broker regards its educational materials and resources. If you don’t know yet, AvaTrade has a free, online trading academy called AvaAcademy. It offers hundreds of courses and lessons for every level of trader, from newbies to seasoned professionals. We also stumbled upon countless recommendable guides, tutorials, and other materials while exploring AvaAcademy.
In addition, AvaTrade allows newbies to use some of the friendliest trading platforms today. First on the list are AvaTradeGo, this broker’s outstanding mobile app, and WebTrader, a web trading platform that’s equipped with an elegant, easy-to-use interface. To make matters even better, AvaTrade’s customers have unlimited access to MT4 and MT5.
Finally, as a beginner trading with AvaTrade, you have the opportunity to enjoy the fruits of copy trading with the broker’s DupliTrade feature. You also get the chance to connect and conquer the world with like-minded trading enthusiasts, thanks to AvaSocial.
AvaTrade
✔Regulated by FCA
✔The platform supports algorithmic trading
Pros & Cons
Fees
Trading Assets
Pros
- World-class educational resources for newbies
- Super-competitive spreads and commissions
- Simple, beginner-friendly interface
- Wonderful support service
- Users can leverage copy trading
- Beginners can use AvaSocial to learn from gurus
Cons
- Higher inactivity fees than other service providers
- Limited product range
Our experts investigated the AvaTrade broker’s fees and charges. We first noticed that the platform has a modest minimum deposit requirement of $100. What’s more, its users pay no additional costs while depositing funds or cashing out. That makes AvaTrade an ideal broker for both cost-conscious and newbie traders who want to test their waters with small capital before going all in.
That said, AvaTrade requires dormant account holders to pay $50 after every 3 consecutive months of inactivity. Moreover, if you let your account remain inactive for over successive months of inactivity, the broker will charge you a $100 administration fee. Not to forget, AvaTrade requires traders who hold positions overnight to cover a premium.
Here’s a breakdown of the fees you should expect to encounter while trading with this service provider:
| Fees and Charges | Amount |
|---|---|
| Spreads | From 0.9 pips |
| Administration fee | $100 |
| Inactivity fee | $50 |
| Overnight premium | Yes |
Low-Cost Trading in Australia
Since most Australian traders are now focusing on cutting costs to increase potential returns, discount brokers have become popular in the Land Down Under. The good news is that many of these service providers are available today. Furthermore, they are regulated and licensed by the most recognized authorities, beginning with ASIC.
That said, if you are interested in low-cost trading, we urge you to keep note of a few things. First, more than a few shoddy and malicious service providers are available today, so limit your trading activities to ASIC-regulated platforms. Additionally, to trade with the cheapest brokers in AU, you have to be 18+ and ready to obey the region’s tax laws. Visit the Australian Taxation Office’s official site for more information.
To start reaping the perks of low-cost trading today, follow these steps:
Step 1
Step 2
Step 3
Step 4
Step 5
Find a good discount broker. It should be regulated by ASIC as well as respected international authorities like the FCA.
Open and verify your account. That is crucial because ASIC requires brokers to implement strict KYC protocols.
Check minimum deposit requirements, pick a funding method, and top up your account. Remember to adhere to your budget’s limitations.
Choose your favorite instrument, set the right trade parameters, and open a position. To avoid exposing your capital to enormous losses, diversify with more than one financial asset.
Monitor open positions and make the right adjustments. Remember to protect your trades with tools like take-profit and stop-loss.
Why Should You Trading with a Low-Cost Trading Platform?
Trading with a discount Australian broker is advisable because it puts you in the best position to enjoy the following:
- Lower trading fees: Most low-cost brokers have tight spreads and commissions. In fact, the numbers for spreads and commissions for some of the best service providers are as low as 0 pips and 0%, respectively.
- Reduced transaction costs: The most exceptional discount brokers support free deposits and commissions. And those with transaction fees have incredibly competitive funding and cash-out charges.
- Higher net returns: Since low-cost brokers have lower trading and transaction costs, their users enjoy enhanced potential profits. Plus, they get the opportunity to leverage powerful trading tools and platforms.
How to Choose the Best Discount Brokers
A simple Google search will show you one thing: there’s no shortage of discount brokers in Australia. Countless of these service providers are operating in this region. However, we can’t put all of them in the same basket since some are exceptional, and others are subpar or straight-up malicious. With that in mind, we urge all of our readers to use the following factors to pinpoint the best low-cost brokers in Australia:
Licensing and Regulation
Online Reputation
Fees, Spreads, and Commissions
Trading Platforms
Educational Resources
Customer Support
Look for a discount broker regulated by ASIC and multiple other regulators, such as CySEC and the FCA. Your chosen service provider should obey the most stringent rules and regulations, like segregating client funds.
Prior to committing to any specific discount broker, research its reputation through reviews and ratings on Trustpilot, Google Play, and the App Store. Choose a service provider with solid feedback and a good record of handling customer concerns in a timely fashion.
As a trader searching for a discount broker, the least you can do is find a service provider with friendly fees, spreads, and commissions. While at it, research any hidden charges because they might cut your profits.
To steer clear of unnecessary complications, choose a discount trading platform with friendly platforms, especially proprietary software. Additionally, check if your chosen provider supports third-party platforms if they are what you are looking for.
If you are a novice, seek a low-cost broker with sufficient educational resources. Depending on your preferences, ensure your chosen service provider offers free guides, video tutorials, online courses, etc.
Sign up with a discount broker with multiple support channels to ensure you get quick assistance, especially when facing urgent problems. Also, ensure your preferred service provider offers live support at least 5 days a week.
Risks to Trade with Discount Broker
Trading with a discount broker is cost-effective; that’s uncontested. However, it also comes with certain risks you should be aware of before making a long-term commitment. With that in mind, you might face the following risks while interacting with the low-cost traders available in Australia:
- Limited customer support: Some of the Australian discount brokers see no need to provide 24/7 support since they offer self-directed accounts. This can be a problem since traders can face complex issues at any day any time.
- Basic tools: Apart from the exceptional discount brokers listed here, many low-cost brokers have lower-quality research and analysis tools.
- High leverage risk: Many low-cost brokers give their customers access to high leverage. Unfortunately, these juicy leverage offerings often lure many unsavvy traders and lead them to their financial downfall.
- High hidden fees: Most discount brokers boast low spreads and commissions and tout this factor loudly. However, they fail to mention hidden costs like account inactivity fees and deposit/withdrawal charges.
Conclusion
Have you picked a fitting discount broker that’s available in Australia? Your journey to achieving your trading and financial goals has taken off, but it’s far from reaching its zenith. Besides choosing a good service provider, you must also adhere to numerous advisable practices. For starters, educate yourself consistently, engage with other traders in online communities, and use a trading journal to keep track of your overall performance as a trader.
Most importantly, before risking money, gauge the effectiveness of your skills and strategies with a paper trading account. Do the same whenever you come up with a new approach or strategy that needs testing before implementation.
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