Brokerage fee cost crunch reveals massive savings for savvy Aussie investors
If you are one of the 1.22 million active online investors* or plan to join their ranks in 2024, a recent number crunch by Mozo’s research team for the annual Mozo Experts Choice Online Share Trading Awards^ reveals that when it comes to brokerage costs it pays to shop around.
Mozo’s experts found that on a $2,000 trade, brokerage fees were as high as $33, which was $31 more expensive than the cheapest brokerage fee of $2 we found for the same value trade - that’s a staggering 1550% difference.
Rachel Wastell, Mozo’s money expert said that there’s a war raging on brokerage fees and investors making small trades frequently could be ripping themselves off by not checking how much they pay in brokerage fees.
“Shopping around isn’t just for home loans and savings accounts ,” she said. “The less you pay in brokerage fees the more money you have to invest and right now online platforms are fighting hard for your business, so if you aren’t going to be using additional features of the more expensive platforms you might be better off with a low cost platform.”
Whether you’re looking to invest in Australian and international shares or ETFs, we’ve wrapped up some of the popular online investing platforms below.
Compare share trading platform options
CMC Invest
- $0 brokerage on first buy order up to $1,000 (limited to one stock per trading day)
- $11 or 0.10% brokerage fee on trades over $1,000 (whichever is higher)
- Easy access to 15 international markets
- Multiple 2024 Mozo Experts Choice Awards^ winner
CMC Markets was named the 2024 Online Share Trading Platform of the Year in the Mozo Experts Choice Awards and offers a comprehensive service that will appeal to beginner and more experienced traders alike. The first Australian listed buy order each day up to $1000 is free (one stock per day). Other trades attract brokerage fee of $11 or or 0.10%, whichever is higher.
moomoo
- No monthly fee
- Trade Australian shares starting at $3 per order (or 0.03% the transaction amount)
- Access to US shares and ETFs starting at USD $0.99 brokerage per order
With the moomoo share trading platform customers have access to ASX and US stocks, including ETFs. If you want to purchase Australian shares, trades start at A$3.00 or 0.03% per order (whichever is larger). The cost for trading US shares and ETFs is USD $0.99 cents per order (but there are a range of other fees so be sure to check the full T&Cs). You’ll also get access to real-time global market data and analysis tools, so you can stay up-to-date and informed when trading. Moomoo also helps investors stay in the loop with news from Bloomberg, Dow Jones, Benzinga, and other sources.
eToro
- No brokerage fees on stocks (other fees may apply)
- No monthly fee
- Access to Australian and US stocks, ETF and Cryptocurrencies
- $100,000 free demo account
With an eToro account you can invest in and trade Australian and US stocks and crypto (1% brokerage on crypto). The account is free to open, there’s no monthly account fees. You can hone your skills with a free $100,000 demo account to practice trading with.
Tiger Brokers
- Worldwide access with one account: ASX, US & HK stocks, EFTs and US Options
- Earn up to 7.00% p.a fixed on your uninvested cash balance (T&Cs apply)
- $5.50 minimum brokerage or 0.055% of the trade value
- Get USD 30 NVDA fractional shares with the deposit amounting to AUD2,000 within 7 days of the first deposit (Mozo special T&Cs apply)
Tiger Brokers provides an online platform for investors who want to keep their brokerage costs to a minimum. There is a standard brokerage fee of 0.055% of the trade value or Min. AUD $5.50 for ASX stocks and ETFs. You can also earn up to 7.00%p.a. fixed interest on your uninvested cash balance up to $150,000 (T&Cs apply). Get worldwide access with one account, access to the Tiger Academy where you can participate in learning programs to help with your investment decisions and a $100,000 USD free demo account to practice with before you begin trading.
* Investment trends: 2023 2H Australia Online Investing Report.
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