Best share trading platforms in Australia

A Casual Investor tends to buy and sell shares occasionally (on average, once a  month) and often uses a long-term strategy to review their investment portfolio.  When selecting an appropriate broker, comprehensiveness of investment tools  is typically not of the greatest importance, with education, ease of use and cost  generally being amongst the more important factors.

An Active Investor tends to buy and sell shares more frequently than the Casual  Investor (on average, four times a month), and may wish to include managed  funds. They typically use the latest market information and fundamental analysis  data/reports to determine portfolio holdings. The comprehensiveness of  research tools is often an important factor in selecting the best broker for them.  Due to a higher trading frequency, cost tends to be important.

A Trader tends to buy and sell shares very frequently (on average, 30 times a  month) and the latest market information is often used to determine portfolio  holding. When selecting an appropriate broker, the availability of derivatives can  be an influencing factor.  Due to a high trading frequency, the availability of a  dynamic trading platform and cost are usually key considerations for them.

The platform that ends up being the most suitable for you could be heavily influenced by your investment goals and trading habits. As an example, how frequently you buy and sell shares or other types of investment assets can have an impact on the fees you’re charged per trade. Some platforms and products also give investors access to a variety of asset classes and markets, while others offer a more straightforward suite of options.

Share trading platforms typically charge investors a fee each time they buy or sell shares, while some may also charge an ongoing account-keeping fee.

The way fees are charged can vary depending on the provider you choose. Some platforms charge a set dollar fee per trade, while for others the fee is a percentage of the value of the trade. In some cases, the fee will be a set dollar fee for traders up to a certain value and a percentage-based fee for higher-value trades.

As well as comparing providers based on the fees they charge, it’s worth watching out for how these fees are charged, as this can impact your investment returns in the long term. For example, paying a set dollar fee (as opposed to a percentage-based fee) for low-value trades could end up being an expensive way to trade, whereas the opposite is true for high-value traders.

Of course, the fee level itself is just as important and can vary massively depending on the provider you choose. Similarly, there can be a huge difference between the ongoing fee levels charged by different platforms, such as account-keeping fees.

Bear in mind that some platforms may waive certain ongoing fees depending on how you use your account. For example, if you trade frequently, the ongoing fee could be reduced. The catch is at least some of these possible ongoing fee savings could be offset by trading costs.

The overall value you get from your platform is typically determined by the fees you’re paying plus what you’re getting in return. That’s where the features and services on offer come into the equation. As a starting guide, these are a range of features that Canstar’s researchers look at when assessing online share trading platforms:

• Opening: How easy is it to apply to open the account and get set up initially?
• Deposit and settlement: Does the provider make it straightforward to deposit funds into your account to start trading?
• Research: What tools does the platform offer to enable investors to carry out research that will help them decide how to invest? Research tools can include charting tools that let investors see the past performance of a stock or index over time, information about particular listed companies, market information and trends, dynamic trading information that updates automatically, and automated alerts with timely information.
• Trading features and tools: What market does the platform offer access to – for example, can an investor buy and sell shares in international markets as well as the Australian Stock Exchange (ASX)? Does the platform give investors the ability to place conditional orders when buying or selling shares (e.g. limit orders that restrict how much you are prepared to pay for a particular trade)? Additionally, does the provider offer access to margin loans, a lending product that allows an investor to borrow money to buy shares?
• CHESS: Will the online share trading platform register your ASX share trades with the Clearing House Electronic Subregister System (CHESS) which records the transfer of a share’s legal ownership when a trade is made? Some providers offer this automatically, which can make it easier for investors to keep track of their holdings.
• Account management: How easy is it to access and use the account (e.g. through a mobile app), what security features does the platform provide and what tools does it offer if you are looking for reports to see how your portfolio is performing?
• Customer service: Does the platform offer a high level of customer support for users who need it, and what educational tools does it offer for those looking to become more informed investors?
• Closing: At the end of your journey as a user, how easy is it to settle and close your account?