As part of our 2017 expert star ratings of online share trading platforms, Canstar has analysed the current market for investors.
In this article, we look at the cost to invest in terms of platform fees and brokerage fees, how ‘desktop for mobile’ is revolutionising online share trading, and the new players that are making it cheaper than ever before to invest.
The ASX’s most recent Australian Share Ownership Study found that more than 1 in 3 Australians (36%) owned shares through listed investments such as managed funds in 2014.
For the growing number of investors – and especially the growing number of young investors – it is more important than ever to choose an online broker that helps you invest smarter, not harder.
Thankfully, Canstar can help you compare your options to find an online broker with a share trading platform to suit your trading needs:
Brokerage fees in 2017
Competition for online brokers is heating up again, so it’s a great time for investors to shop around.
A relatively new player in the market for online brokers, SelfWealth, is also putting the heat on the established online brokers when it comes to attracting investors making large trades. SelfWealth charges a flat fee of $9.50 for all trades, regardless of the amount being traded. Compared to the usual model with a percentage-based brokerage fee, SelfWealth presents a compelling alternative for investors making trades worth $10,000 or more.
Of course, that’s not a product recommendation, and we still encourage you to compare your options to find the right online broker for you:
The average ongoing platform fees and brokerage fees on offer in 2017 are as follows, according to our latest ratings research:
Based on the monthly ongoing fees charged by platforms rated in the 2017 Online Share Trading Star Ratings.
Based on the online brokerage fee charged per trade by platforms rated in the 2017 Online Share Trading Star Ratings.
Learn more about the usual brokerage fees for online share trading platforms.
Investing with your smartphone
Digital natives are leading the way when it comes to the growth of mobile trading versus desktop trading. The latest research shows half of Gen Y investors (50%) trade regularly using their smartphone rather than a PC, laptop, or tablet.
We can expect brokers to cater for the exponential growth in mobile use and develop solutions that will bring both convenience and tools to make informed trades over the next few years.
Young investors are also keen to invest in tech, knowing this is a growing field. OnMarket BookBuilds, an online broker that offers the chance to invest in IPOs online, says more than 1 in 3 (37%) of investors using their platform are in Gen Y.
This may still be a generational trend for now. Baby Boomers largely continue to trade online rather than using a mobile device, according to the CommSec online share trading platform.
With so many investors trading using their mobiles now, one of the main features to look for in an online share trading platform these days is the ability to make trades using your smartphone or tablet.
We’ve noticed a huge push in institutions offering better and better mobile trading apps. The following online share trading platforms have mobile trading apps that offer smartphone push notifications, SMS alerts, live prices, price push notification alerts with pre-saved trade orders, dynamic information on market depth, and daily market reports:
|CMC Markets – Share Trading||Classic Account|
|CMC Markets – Share Trading||Active Investor Account|
|CMC Markets – Share Trading||Premium Trader Account|
|CommSec||Share Trades Internet Preferred|
|netwealth Investment||Standard Share Trade|
|netwealth Investment||Trading Pro|
|Suncorp Bank||Share Trade|
|Suncorp Bank||Share Trade with Dynamic|
|Source: www.canstar.com.au as at 4 May 2017.|
The share market in 2017
We have recently reported on several trends emerging in Australia’s share market in 2017 so far:
- Latest China slump is affecting commodities prices: This is some cause for concern, given that China remains Australia’s largest trading partner in 2017. Investors may consider diversifying their portfolio if they are invested primarily in commodities or international markets.
- Dividends of $22 billion predicted: Australian-listed companies have been predicted to pay shareholders dividends of a collective $22 billion in the 2017 March-July quarter. Roughly 88% of the ASX200 companies reporting for the 6 months to December elected to pay a dividend.
- Young investors driving interest in international stocks: Gen X and Gen Y led the charge over the course of 2016 when it came to investing in international shares. Gen X investors had increased their investment in international shares by 91% as of January 2017.
- Keep in touch with the latest top 5 winners and losers on the ASX200 with our Share Market Today report.
Investors can often stay on top of the latest online share trading news through their online broker’s website or through their trading platforms.
Choosing an online share trading broker
It’s easy to choose an online broker once you know what to look for in an online share trading platform. Canstar compares online share trading platforms based on more than 200 factors including:
- Brokerage fees and platform fees
- Company and market information
- Dynamic trading with a live data stream
- Education materials
- Access to different investment options
- Client services and support
If you’re looking for an online share trading platform, consider the top 5-star rated online share trading platforms listed in our latest star ratings.
Compare online share trading platforms using our website and filter your search to find a 5-star rated platform:
Read our detailed Online Share Trading Star Ratings Methodology to understand why platforms received a 5-star rating for a particular investor profile.
Discover more trends investors need to know about when it comes to online share trading in 2017, with our latest star ratings report:
The Star Ratings in this table were awarded in April 2017. The search results do not include all providers and may not compare all features relevant to you. View the Canstar Online Share Trading Star Ratings Methodology and Report. The rating shown is only one factor to take into account when considering products.
To the extent that the information in this article constitutes general advice, this advice has been prepared by CANSTAR Research Pty Ltd A.C.N. 114 422 909 AFSL and ACL 437917 (“CANSTAR”). The information has been prepared without taking into account your individual investment objectives, financial circumstances or needs. Before you decide whether or not to acquire a particular financial product you should assess whether it is appropriate for you in the light of your own personal circumstances, having regard to your own objectives, financial situation and needs. You may wish to obtain financial advice from a suitably qualified adviser before making any decision to acquire a financial product. Canstar provides information about financial products. It is not a product provider and in giving you information it is not making any suggestion or recommendation to you about a particular product. Please refer to Canstar’s FSCG for more information.
All information obtained by Canstar from external sources is believed to be accurate and reliable. Under no circumstances shall Canstar have any liability to any person or entity due to error (negligence or otherwise) or other circumstances or contingency within or outside the control of Canstar or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication, or delivery of any such information. Copyright 2014 CANSTAR Research Pty Ltd A.C.N. 114 422 909. The word “CANSTAR”, the gold star in a circle logo (with or without surmounting stars), are trademarks or registered trademarks of CANSTAR Pty Ltd. Reference to third party products, services or other information by trade name, trademark or otherwise does not constitute or imply endorsement, sponsorship or recommendation of Canstar by the respective trademark owner.