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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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The ETF market holds immense opportunity for both beginner and experienced traders. However, success in this endeavour largely hinges on the ETF trading platform you opt for. We’ve combed the internet and conducted comprehensive tests to help you find the best ETF trading platform Australia.
Our research involved testing dozens of ETF brokers in Australia. After, we whittled down the brokers to 5 of the best for your consideration. With most of the work cut out for you, all you have to do is read through our list and pick the best ETF broker Australia for your skill level and trading goals.
List of the Best ETF Trading Platforms
- eToro – Overall Best ETF Trading Platform in Australia
- Pepperstone – Best ETF Trading Platform for Learning and Educational Materials
- Interactive Brokers – Best ETF Broker for Low-Cost ETF Trading
- Saxo – Best ETF Platform for Researching and Seasoned Traders
- AvaTrade – Best ETF Trading Platform for Versatility in Trading Platforms and Instruments
In This Guide
Australian ETF Brokers Comparison Table
Our financial experts took it upon themselves to exhaustively look into Australia’s most popular EFT brokers. While the exact definition of “best” ETF trader varies from one trader to the next, certain rating criteria apply across the board. We conducted multiple tests to determine the brokers’ fees, security, trading platforms, and other crucial assessment factors. We also scoured reviews on Trustpilot, Google Play, and the App Store to get the complete picture.
Rather than inundating you with all the particulars, we’ve compiled the comparison table below to help you understand everything you need to know to choose the best broker for ETF Australia.
| Best ETF Trading Platform | License | Support Service | Software | Payment Method | Demo Account |
|---|---|---|---|---|---|
| eToro | ASIC, FCA, CySEC, DNB, DASP, MFSA, FSAS, FinCEN, GFSC | 24/5 | CopyTrader, Multi-Asset Trading Platform, Investing Platform, eToro Mobile App | Credit/debit cards, Bank transfer, Neteller, Skrill, PayPal, iDEAL, online banking | Yes |
| Pepperstone | ASIC, CMA, FCA, DFSA, CySEC, SCB, BaFin | 24/7 | Pepperstone Trading Platform, MetaTrader 4, MetaTrader 5, TradingView,cTrader | Credit/debit cards, PayPal, Skrill, Neteller, Flutterwave | Yes |
| Interactive Brokers | FCM, SEC, FINRA, CFTC, NFA | 24/5 | Trader Workstation, IBKR Global Trader, IBKR Desktop/Mobile , IBKR APIs, IBKR ForecastTrader, IMPACT | Online banking, Wise, Online BPAY | Yes |
| Saxo | FSA, ASIC, FCA, IMA, MAS, SFC, JFSA | 24/5 | SaxoTraderGO, SaxoTraderPRO, SaxoInvestor | Bank transfer, Credit/debit cards, Quick payment | Yes |
| AvaTrade | ASIC, MiFID, FSA, FSC, FSA, FFAJ | 24/5 | MetaTrader 4, MetaTrader 5, AvaOptions, AvaTrade App, AvaSocial, DupliTrade, ZuluTrade | Credit/debit cards, bank transfer | Yes |
Platforms Short Overview
The crux of ETF trading is making profits, but this can be difficult if trading platforms charge hefty fees. While conducting our research, we noticed that most traders and investors lean towards ETF brokers with affordable charges. The less the service costs, the more profit they can take home.
However, with so many different fees, including hidden charges, finding an affordable ETF trading platform is easier said than done. To save you the hassle, we’ve compiled the tables below, listing the fees charged by these ETF brokers and the assets they support. That way, you can find the most suitable and affordable broker based on these factors.
Fees
| Best ETF Broker | Minimum Deposit Requirements | Commissions/Spreads | Deposits/Withdrawals | Inactivity Fees |
|---|---|---|---|---|
| eToro | A$50 | None | A$5 Withdrawal | A$10 Monthly |
| Pepperstone | A$0 | A$0.02 Per Share | Free | None |
| Interactive Brokers | A$0 | From A$0.00 Per Share | First withdrawal is free, then A$15 | None |
| Saxo | A$0 | From A$0.03% | Free | None |
| AvaTrade | A$100 | Spreads from 0.13% | Free | A$50 |
Assets
| Best ETF Broker | Stocks | Forex | Cryptocurrencies | Commodities | Indices | ETFs | Options |
|---|---|---|---|---|---|---|---|
| eToro | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Pepperstone | Yes | Yes | Yes | Yes | Yes | Yes | No |
| Interactive Brokers | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Saxo | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| AvaTrade | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Our Expert Opinion about ETF Trading Platforms
After countless hours researching and testing the best ETF trading platforms in Australia, we whittled down our list from a couple dozen brokers to only five. We thought it best to share our expert opinions about these brokers so you can get clearer insights into how these trading platforms work and what they offer.
1. eToro – Overall Best ETF trading Platform in Australia
We conclusively established that eToro is hands down the best trading platform in Australia. The platform is great for beginner and expert ETF traders and boasts a host of innovative features to boost your trades.
For starters, the platform has a simple, easy-to-use interface, which makes it ideal for first-timers and ETF trading novices. Besides its user-friendly interface, eToro has solid security features, including Two-Factor authentication (2FA) and SSL encryption to protect user assets. The broker is regulated by prominent regulating bodies like ASIC, FCA, and others. You can rest easy knowing you’re well-protected from fraudulent activity or underhanded broker tactics.
eToro boasts a solid reputation in the trading community and currently has over 30 million users worldwide. However, what gives the broker an edge over the rest is its innovative social trading, CopyTrader. With CopyTrader, you can directly copy successful trades from more experienced traders on the platform. What’s more, it offers traders a glimpse into other traders’ ratings and performance metrics, so you can copy trades that align with your goal and trading strategy.
eToro
✔ User-friendly trading platform
✔ Over 6000 trading instruments
Pros & Cons
Fees
Trading Assets
Pros
- Intuitive copy trading platform for seamless social and copy trading
- Trusted ETF broker with a solid reputation
- Thriving community of traders and investors for support and advise
- Wide range of financial trading instruments
- Secure trading environment with state-of-the-art security features and proper regulatory compliance
Cons
- A complex fee structure that may be hard to understand
- Charges considerable currency conversion fees
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 |
2. Pepperstone – Best ETF Trading Platform for Learning and Educational Material
Starting your ETF trading journey can be daunting without proper access to high-quality educational materials to help you learn the ropes. We singled out Pepperstone as the best ETF broker Australia for learning and educational content.
Pepperstone is committed to ensuring new traders and investors profit from their endeavours. The broker has a vast collection of educational materials, including trading guides, webinars, and general education.
Besides educational resources, Pepperstone offers a free demo account for users to try their hand at ETF trading before transitioning to a live account. Moreover, the platform is compatible with some of the most popular trading platforms, like TradingView, MetaTrader 4, and MetaTrader 5. This versatility means beginner traders can choose the platform they’re most comfortable with and succeed in ETF trading.
That said, you’d be mistaken to think that Pepperstone is an ETF broker solely for beginner traders. Far from that, Pepperstone offers a vast array of advanced trading features in its Razor account for seasoned ETF traders and investors. We’re talking about features like Autochartist, Expert Advisors, MQL5, and detachable charts, among others.
Pepperstone
✔24/7 support service
✔User-friendly and navigable platform
Pros & Cons
Fees
Trading Assets
Pros
- Comprehensive and expansive educational materials for beginner traders
- Compatibility with popular trading platforms like MT4 and MT5
- A large collection of tradable assets
- Numerous third-party integrations for trading versatility
- Offers more than 1000 tradable ETFs
- Seamless copy trading through the cTrading platform
Cons
- Demo account only lasts for 60 days
- Limited non-CFD trading options for traders with diverse
We find Pepperstone broker to be one of the brokers with transparent fee structures. There are no hidden charges, so what you see displayed on its platform is what you will incur. This makes it easier for you to budget without worrying about overspending.
Let’s discover below some of the trading and non-trading charges at Pepperstone.
| Trading and Non-Trading Charges | Details |
|---|---|
| Account Opening | $0 |
| Management Fee | $0 |
| Minimum Deposit Requirement | From $0, depending on your jurisdiction |
| Commission | From $0.02 on US-listed shares |
| Spreads | From 0.0 pips on its Razor Account |
| Deposits and Withdrawals | Free |
| Inactivity | None |
| Overnight Funding | Varies based on global market conditions |
| Copy Trading | Free |
Note that Pepperstone charges both spreads and commissions. While spreads are charged on all accounts, commissions are only imposed on the Razor Account.
3. Interactive Brokers – Best EFT Broker for Low-Cost ETF Trading
While Interactive Brokers may not share the same fanfare as its counterparts eToro and Pepperstone, it’s still a force to reckon with. Established in 1978 by Thomas Peterffy, Interactive Brokers holds its own among Australia’s creme de la creme of EFT brokers. However, what sets the broker apart from the rest is its low-cost offerings.
Interactive Brokers has no minimum deposit requirements, and you can start trading ETFs with as little as a dollar. Furthermore, the platform doesn’t charge an inactivity fee or commissions for no transaction US ETFs. Our only quip with the platform is that it only allows one free withdrawal and charges $15 for all subsequent withdrawals. That said, if you’re looking for an affordable ETF trading platform, Interactive Brokers should be your top choice.
On matters of security, Interactive Brokers is also a. Users can leverage the broker’s cutting-edge security features to protect their assets and personal information. Interactive Brokers’ security features include Two-Factor Authentication (2FA), Secure Socket Layer (SSL) encryption, IP restrictions, and automatic log-offs. Furthermore, the platform is keen on educating its users about security threats and how to protect themselves from them.
Interactive Brokers
✔$0 minimum deposit requirement
✔No account inactivity fees
Pros & Cons
Fees
Trading Assets
Pros
- Established trading platforms with 47 years in the industry and a solid reputation
- More affordable than its peers
- Extensive research and analysis tools, complete with company research from industry leaders
- Robust security features and protocols like automatic log-offs and limited failed login attempts
- The Trader WorkStation platform is incredibly useful for experienced traders, specifically those practising algorithmic trading
Cons
- A complex fee structure that varies depending on region and other factors
- It does not support MT4 and MT5, locking out many traders who use these platforms
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% |
4. Saxo – Best ETF Platform for Researching and Seasoned Traders
ETF markets are a goldmine for experienced ETF traders and investors. In fact, the only thing holding back such traders is the lack of a feature-packed trading platform to facilitate their trades and investments. Saxo is just what the doctor ordered for experienced traders who depend on advanced analytical tools and extensive research for profitable trades.
The platform offers different account types to suit different user needs. This includes an individual, joint, corporate, and professional account. Joint accounts allow you to share an account with your spouse and other family members. With a corporate account, you open a trading account on behalf of your company. Moreover, these accounts are further tiered to Classic, Platinum, and VIP accounts. Platinum and VIP accounts have more benefits and better customer support.
Besides different account types, the platform offers various proprietary trading platforms to accommodate different trading styles and strategies. They include SaxoTraderGo, SaxoTraderPro, and SaxoInvestor.
Experienced traders can also have a field day with Saxo’s extensive range of trading instruments and technical analysis tools. They’ll also benefit immensely from the platform’s affordable fees and wealth of educational resources.
Pros & Cons
Pros
- A vast array of technical tools for advanced traders
- A team of market experts provides plenty of research and insight into financial market trends
- Holds 3 banking licenses and is regulated by top regulatory bodies, including ASIC and the FCA
- Has a respected standing in the trading community with over 30 years in the industry
- Users qualify for up to $100,000 in guarantee funds should Saxo go bankrupt
Cons
- Doesn’t support MT4 and MT5
- Steep minimum deposits for VIP accounts and entry barriers for professional accounts
5. AvaTrade – Best ETF Trading Platform for Versatility in Trading Platforms and Instruments
AvaTrade is a leading ETF trading platform in Australia and other parts of the world. Launched in 2006, AvaTrade is a newcomer compared to other platforms on our list but still manages to keep up with its more seasoned counterparts.
AvaTrade lets users trade multiple ETFs and more than 1,250 tradable assets. It’s also compatible with the most popular trading platforms, namely MT4, MT5, and TradingView, and effortlessly integrates with third-party, automated trading platforms like ZuluTrade and DupliTrade. Plus, AvaTrade allows seamless copy and social trading via its AvaSocial app. But that’s just the tip of the iceberg.
This broker also offers an extensive lineup of technical analysis tools for more experienced traders. Some notable analysis tools available in AvaTrade include Expert Advisors, Guardian Angel, and Economic Calendars. Furthermore, AvaTrade contains vast educational resources that may be useful for both beginner and seasoned traders. Users can learn to trade ETFs through video tutorials, quizzes, webinars, and blog posts. The platform has an entire section dedicated to education called AvaTrade Academy, which has a complete course for beginners.
AvaTrade
✔Regulated by FCA
✔The platform supports algorithmic trading
Pros & Cons
Fees
Trading Assets
Pros
- Compatible with popular trading platforms like MT4, MT5, and TradingView
- AvaProtect offers protection for up to $1,000,000
- Licensed and highly regulated broker with two decades in the industry
- Allows integration with automated trading platforms like ZuluTrade
- Compatible with copy trading via DupliTrade and AvaSocial
Cons
- High inactivity fee of A$50 after only three months of inactivity
- AvaTrade charges an A$100 minimum deposit, which is higher than what its peers ask
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 |
ETF Trading in Australia
As mentioned earlier, Australia has a thriving community of ETF trades, trading both local and international ETF markets. In fact, according to the Financial Standard of Australia, the ETF market is seeing rapid growth and is likely to hit the trillion-dollar mark by 2030. This begs the question, why is ETF trading so popular in Australia?
Well, ETF trading is a low-cost venture, accessible to anyone with a laptop, PC, or smartphone and a stable internet connection. Moreover, ETF trading is flexible and can be traded anywhere at any time. Furthermore, traders can diversify their portfolios by investing in as many ETF markets as their balances can permit. In Australia, ETF traders can trade ETFs like ASX:NDQ, NYSEARCA:IVV, Vanguard Australian Shares (VAS) ETF, iShares Global 100 ETF (IOO), and many others.
That said, the rise in popularity of ETF trading has spurred a proliferation of ETF trading platforms in Australia. The Australian government permits the use of local and international ETF brokers. However, it’s the trader’s responsibility to investigate the particulars of the brokers they opt for. They should look into the trading platform’s offerings, licenses, fees, and security to protect their investment and ensure profitable trades.
The Australian Securities and Investment Commission (ASIC) is the main financial regulatory body overseeing ETF trading in Australia. All reputable ETF trading platforms, like the ones mentioned above, hold licenses with ASIC and other world-renowned regulatory bodies.
Why Should You Trade With an ETF Trading Platform?
There are several ways to trade ETFs in Australia, but the most popular one is online ETF trading platforms or ETF brokers. These brokers have a clear advantage over other trading methods like full-service brokers or direct trading through fund issues. Here are a couple of reasons why you should trade with an ETF trading platform:
- ETFs are an excellent way to diversify your investments through a single financial instrument, and ETF brokers give you access to the global ETF market
- ETF trading platforms allow 24/7 access to ETF markets
- Online brokers allow flexible trading anywhere, provided you have internet access
- Offers more affordable trading compared to other alternatives
- Availability of countless trading and risk management tools to better your chances of profitable trades
- Instant trade executions, deposits, and withdrawals
- Real-time updates on markets for more informed ETF trading
How to Choose the Best ETF Trading Platform
With hundreds of ETF brokers on the World Wide Web, finding the best platforms to buy ETFs in Australia can be challenging. Here are a couple of pointers to ensure you settle for the best platform to buy ETFs Australia.
Licenses/Regulations
Available Trading Platforms
Broker’s Fees
Customer Support
Asset Offerings
User Testimonials
First things first, ensure the ETF broker you opt for has valid licenses from recognised regulatory bodies, including ASIC, FCA, BaFin, and others. It’s worth noting that an expired license is invalid. You can find this information on the broker’s website or authoritative review sites like Trustpilot. Having a licensed and regulated broker also ensures you trade ETFs securely and avoid falling victim to scammers.
Ensure you choose an ETF broker that supports trading platforms you’re most familiar with. ETF brokers, like Interactive Brokers, only offer proprietary trading platforms. This isn’t to say that these trading platforms are bad per se. However, there’s a huge learning curve to understanding how they work. If you’re used to trading on MT4 or MT5, find a broker supporting these platforms. Similarly, if you’re a copy trader, look for a broker that supports copy trading. Plus, ensure you select a platform that is mobile-friendly and offers a demo account for gauging your skill level risk-free.
Hefty service and transaction fees might eat into your profits. Check how much the ETF trading platform charges before opening a live account. Pay special attention to the spreads/commissions and check whether the platform charges deposit and withdrawal fees. Also, be wary of trading platforms with hidden charges to avoid spending more than you initially budgeted for.
Customer support is a huge consideration when selecting an ETF trading platform, given how volatile ETF trading is. Check support availability while vetting every service provider. Also, look at the customer support channels and whether they offer live chat or direct lines to customer support agents who can help solve your problems or answer your queries on the spot.
Confirm if a broker supports ETF trading before opening your account. Also, examine the range of ETF products available as well as other assets you’d like to diversify your portfolio with, like commodities and stocks. Don’t limit yourself by committing to a platform with a significantly thin asset range.
Research and read user testimonials on Trustpilot, Google Play, and the App Store. Source most of the insights you need to make the best decisions from testimonials focused on platform usability, customer support quality, fees, and similar vital aspects.
Risks to Trade With ETF Trading Platforms
While it’s true that ETF trading can be extremely rewarding, this isn’t always the case. Without the right strategies and risk management, your profits can be in the red. That said, there are several risks involved with trading with ETF platforms. They include:
- Market Volatility
The biggest risk to trading ETFs is the market fluctuations of assets held in an ETF. Should an underlying investment plummet, so will your ETF’s value, leading to considerable losses. A proper risk management strategy can help sidestep these losses.
- Liquidity Risk
Some thinly-traded ETFs might have low liquidity, limiting your buying and selling options. It also makes it harder to execute orders at your desired price. The only way to avoid these risks is to be extra careful when choosing ETFs, and ensure you choose ETFs with high liquidity.
- Regulatory Risks
Abrupt changes to ETF regulations in Australia might compromise your investment. For instance, ASIC might restrict access to certain ETFs you have already invested in. Unless you update your portfolio accordingly, you may face significant losses.
Final Thoughts
Well, there you have it: a comprehensive rundown of the best ETF trading platforms in Australia. Remember, your choice of ETF broker is a major factor in determining your success in ETF trading. As such, explore all the available options and find a broker that can fit your trading style and strategies. Fortunately, most reputable ETF trading platforms in Australia have demo accounts that let you trade ETFs without depositing actual cash. Give different trading accounts a whirl before settling for the best ETF platform Australia. A world of profitability awaits!
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