Canstar has named the winner of its annual Online Share Trading Award for 2021.
Sharemarkets in Australia and across the world have experienced their fair share of volatility over the past 12 months as the world has faced unexpected lockdowns, business shutdowns and disrupted international supply chains due to the COVID-19 pandemic. This has resulted in some shares soaring and others plummeting over the course of even one day.
Despite this, Canstar’s Investor Sentiment Index in April found 30% of Australians surveyed were currently investing in the stock market or another investment vehicle like property, ETFs or cryptocurrency, and a further 14% were considering it. On top of this, 46% said they were optimistic the sharemarket will go up in value in the next six months.
Whether you are new to trading or you have been trading shares online for a while, you may want to know if your platform of choice offers value.
To help investors in search of that value, Canstar has rated 44 online share trading platforms from 22 providers on its database. Read on to find out which platforms were deemed to offer 5-Star value in 2021, and which provider won Canstar’s Online Share Trading Broker of the Year Award.
Canstar Research assessed platforms based on both price (brokerage and ongoing fees over a year) and features (including account support, research and charting tools, security measures and markets available, among other features).
Each online share trading platform was rated against at least one of the following consumer profiles:
Casual Investor – Trades once a month on average, typically using a long-term strategy. Generally values ease of use, competitive costs and access to educational resources.
Active Investor – Trades four times a month on average, and may have an interest in investing in managed funds. Values comprehensive research tools and competitive costs.
Trader – Trades 30 times a month, on average. Availability of a dynamic trading platform and access to real-time data are usually important factors, as are cost and the availability of derivatives. As such, only dynamic platforms (e.g. platforms that offer live data) were eligible to be rated against this profile.
Each of the profiles is assigned a weighting of price and features based on consumer behaviour. The Casual Investor and Active Investor profiles use a 50%/50% split, whereas the Trader profile uses a 60%/40% split for price and features respectively.
Products’ final scores were then used to determine their Star Ratings in each consumer profile, and the Broker of the Year Award was given to the provider with the strongest overall performance across all three profiles.
For more information on how platforms were rated, read the Online Share Trading Star Ratings and Award methodology document.
The online share trading platforms that received a 5-Star Rating are listed below for each profile, sorted alphabetically by provider name. You can also view the full results.
Active Investor
Company | Product |
---|---|
CMC Markets – Share Trading | Classic |
IG Markets | Share Trading |
Interactive Brokers Australia | Share Trading |
nabtrade | nabtrade |
Saxo Capital Markets (Australia) | SaxoTrader PRO/GO |
Casual Investor
Company | Product |
---|---|
CMC Markets – Share Trading | Classic |
IG Markets | Share Trading |
Interactive Brokers Australia | Share Trading |
nabtrade | nabtrade |
Saxo Capital Markets (Australia) | SaxoTrader PRO/GO |
Trader
Company | Product |
---|---|
CMC Markets – Share Trading | Active Investor |
CMC Markets – Share Trading | Premium Trader |
IG Markets | Share Trading |
Interactive Brokers Australia | Share Trading |
CMC Markets received a 5-Star Rating across all three consumer profiles this year, and took out Canstar’s Broker of the Year Award for the 11th consecutive year. Canstar Research said CMC Markets had market-leading product features in trade, company information and security.
CMC Markets’ online share trading platform offers a number of features to investors, including:
Cover image source: Pavel Ignatov/Shutterstock.com
This article was reviewed by our Sub Editor Tom Letts before it was updated, as part of our fact-checking process.
Try our Online Share Trading comparison tool to instantly compare Canstar expert rated options.
This advice is general and has not taken into account your objectives, financial situation, or needs. It is not personal advice. Consider whether this advice is right for you, having regard to your own objectives, financial situation and needs. You may need financial advice from a suitably qualified adviser. For more information, read Canstar’s Financial Services and Credit Guide (FSCG) and our detailed disclosure. Canstar may receive a fee for referring you to a product provider – for further information, see how we get paid. Payment of fees for ads does not influence our Star Ratings or Awards.
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Canstar is an information provider and in giving you product information Canstar is not making any suggestion or recommendation about a particular product. 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. Please refer to the product disclosure statement (PDS) and Canstar’s Financial Services and Credit Guide (FSCG) for more information, and read our detailed disclosure, important notes and liability disclaimer.
The Star Ratings and Award results referred to in this article were published in May, 2021. View the Online Share Trading Star Ratings and Award methodology and results for more information. The results are general advice only and not personal financial advice. They do not include all providers and may not compare all features relevant to you. Consider whether this general financial advice is right for your personal circumstances. Star Ratings and Awards are only one factor to take into account when considering products. Costs, features and other product information should be confirmed with the relevant financial institution. Consider the Product Disclosure Statement before making a purchase decision and seek advice from a licensed financial adviser before making an investment decision. Read our FSCG.
Any advice provided on this website is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you. Consider the Product Disclosure Statement and Target Market Determination before making a purchase decision. Canstar provides an information service. It is not a credit provider, and in giving you information about credit products Canstar is not making any suggestion or recommendation to you about a particular credit product. Research provided by Canstar Research AFSL and Australian Credit Licence No. 437917. You must not reproduce, transmit, disseminate, sell, or publish information on this website without prior written permission from Canstar.