Whether you’ve started to trade yet or not, you must have heard about stock trading. Overall, stock trading is one of the most popular trading methods available aside from Forex or crypto trading.
In essence, the goal for trading stocks is to capitalize on short-term trends rather than long-term ones. There are hundreds of different ways to trade stocks, but before you dive into all of that, you must go for a reputable broker.
Overall, the broker is responsible for executing your trades accordingly; the individual or firm is the intermediary between you and the exchange platform. In most cases, you’re going to need a stockbroker if you want to execute any trades with your stocks.
Considering all the stockbrokers currently available on the market, it may be challenging for you to find something that fits your needs. Fortunately, here at Best Forex Broker Australia, we’re going to provide you with some of our top picks for this year.
If you’re looking to begin with your stock trading journey in the best way possible, keep reading this article! We did heavy research to find the most useful brokers in Australia, and we’re positive you can find something that works for you here.
What Are Our Top Five Stock Broker Picks for 2022?
If you can’t wait to read the entire list for our options, don’t worry; we got you covered. Below is a list of our top five stock brokers for 2022. However, if you want to know why we chose those options, you must read through the entire review.
- CMC Markets
- Fidelity Investments
- Interactive Brokers
eToro is one of the most popular brokerages of all time, and for good reason. It’s available in a wide range of countries, and it also has one of the most sophisticated platforms on the market.
Overall, this platform is known for its stock trading capabilities, but it launched crypto trading capabilities through CFDs back in 2014. Although eToro is one of the “youngest” platforms on this list, it still has over 15 years on the market, making it a great option for people.
Some of the primary features you can expect from eToro include the following:
- Social trading
- Educational resources
- Multi-asset platform
- 0% commission on particular stock transactions
- Free insurance of up to one million AUD
Who Is It For?
eToro is aimed at professionals who already have experience with trading. Unfortunately, the platform itself isn’t too easy to understand, so beginners may have a lot of trouble figuring out what each feature does.
Pros and Cons
- It’s regulated in many countries.
- It also offers crypto CFDs.
- It’s a reputable platform.
- It’s not aimed at beginners.
- Some people may not like its minimum trading requirements.
CMC Markets is labelled -by some- as one of the most reputable brokers worldwide. While it’s based in the U.K., it’s also available for Australian residents. According to the developers, CMC Markets currently has over one million users on its platform, which is an outstanding number.
CMC Markets has a rather extensive range of offerings for Aussie residents. However, the company primarily focuses on providing excellent customer service and education. As for the platform, you can trade from anywhere you want, including your desktop computer, laptop, tablet, or smartphone.
One of the most interesting things about this app is that it works with a proprietary “Next Generation” platform and MT4 capabilities, making the trading experience much more pleasant for the average user.
Currently, CMC Markets works with over 35,000 shares to help you secure your financial future. Aussie users can expect to pay $0 in brokerage for US, UK, Canada, or Japan markets. On the other hand, users can also pay $0 in brokerage for Aussie shares up to $1,000. The product range includes shares, warrants, ETFs, mFunds, and others.
We believe CMC Markets has one of the most intuitive and user-friendly platforms on the market, especially the mobile version. Whether you want to go directly into trading or check live data or news, the developers are providing users with the most advanced research tools on the market.
Who Is It For?
Overall, CMC Markets is perfect for anyone looking to trade stocks regardless of their current skill level. The fees are reasonable for everyone, and the platforms are simple to use, so you’re never going to have any problems browsing it. Even if you do have a problem, CMC Markets’ customer support team is one of the most reliable ones you can currently find.
Pros and Cons
- It offers a wide range of offerings for every user.
- It’s regulated by the FCA in the U.K.
- It has excellent customer service and educational resources.
- Your account is protected at all times.
- Some people aren’t fully convinced with the integration of both “Next Generation” and MT4.
- There are no auto-trading features for users other than MT4 for algorithmic trading, which is something that other platforms may offer.
Also known as just “Fidelity,” Fidelity Investments is a brokerage website that offers resources for both professional traders and casual investors who want to dive deeper into the world of the stock market.
Keep in mind Fidelity Investments was founded back in 1956 but didn’t make its internet appearance until 1995; almost 50 years later. Due to all the time this company has on the market, there’s no doubt that it is a reputable option for traders to use.
As with CMC Markets, Fidelity offers a wide range of products and services for users, including a range of offerings of stocks, ETFs, options, Forex, mutual funds, and more. Moreover, you can choose to trade in either the desktop or mobile version of the service without any problems.
One of the most remarkable aspects of this website is that it doesn’t charge any minimum account fees. Moreover, it offers a wide range of educational resources for those looking to learn a bit more about trading a particular asset.
Regarding Fidelity’s technology, it uses a proprietary “smart order routing tech” Fidelity Dynamic Liquidity Management (FDLM), which helps users track the best available price for assets. Moreover, it can access several types of market venues.
Who Is It For?
As with the previous service, Fidelity is recommended for either novice or pro traders. Casual investors can work with Fidelity’s web tools, educational resources, and other personalization tools to make their experience as smooth as possible. On the other hand, professionals may take the most advantage of Active Trader Pro.
Unfortunately, Fidelity doesn’t offer some of the most popular trading products, such as cryptocurrencies, futures, or commodities. However, if what you’re looking for is a platform to trade stocks, this may be an excellent option to consider.
Pros and Cons
- It features lower costs in comparison to other services.
- It provides excellent trading technology
- Excellent customer support and educational resources.
- It doesn’t have crypto, futures, or commodities trading.
- It doesn’t offer a section to track news or data on the web version.
- If you want assistance from a particular broker, you may have to pay high fees.
If you’re looking for something primarily aimed at professionals, this may be the one for you. This company launched in 1993 and has since then offered a wide range of brokerage services for those who are looking for broad market access and lower trading costs.
In Interactive Brokers, you can trade options, futures, Forex, stocks, and more assets from over 135 markets, which is a lot. Moreover, people can use the company’s “Impact Dashboard,” which allows them to evaluate assets with an SRI lens.
Keep in mind you have up to 90 days from the day you opened the account to fund it. This is excellent news for those who want to open an account and check all of the options available before deciding to spend money on it. You can trade from either the service’s desktop, web, or mobile version; the mobile version is called “IBKR Mobile.”
Some of the things that this service offers you include real-time streaming information, drawing tools, news, and charting. If you want to take things one step further, you can access Interactive Brokers’ “Premium News,” which is an extra subscription.
Who Is It For?
As mentioned before, Interactive Brokers works its best for those who already have a decent range of experience in trading. Keep in mind it offers an outstanding range of asset classes and markets, so you’re not going to have any problems choosing something that fits your needs.
New traders may also use this platform since it currently offers a decent number of educational resources to help them get started.
Pros and Cons
- It offers an extensive product and asset range.
- It has great order execution capabilities.
- It has low-margin interest rates.
- It may not seem that appealing for traders with less experience.
- There’s no option for automated trading or customizable trading algorithms.
SuperHero is the last broker on this list, but it’s regarded as an excellent platform for ASX and US shares.
Overall, SuperHero is perfect for those looking for a low-cost broker for their stocks trading. Keep in mind that, while it’s more affordable than other options, it’s still a reputable and powerful platform to use.
Some of the primary features include:
- Flat, $5 brokerage fees for ASX stocks and $0 brokerage fees for ETFs or US stocks
- Minimum investment amounts
- Real-time pricing information
- Tax reporting features
Who Is It For?
SuperHero works great for any trader type who wants to take advantage of the low trading fees. Creating an account is fairly easy, and the platform is great enough for anyone who wants to get into the trading world.
Pros and Cons
- Low fees
- Minimum trading requirements
- Live pricing data
- You can only trade on the ASX or US markets.
- It doesn’t offer as many trading tools as other services on this list.
What Makes a Good Stockbroker?
Several factors can make a stockbroker either too good or too bad. However, we rounded up some of the primary factors that make a stockbroker good so that you have a better idea next time you’re looking for one:
- It offers reasonable trading fees.
- It allows you to trade with a wide range of platforms.
- It has enough educational resources.
- It has good customer support.
- It comes with a decent range of offerings.
The reason why we chose the previous five brokers is that they all check the boxes we just mentioned. A stockbroker without reliable customer support, trading platforms, or even a decent range of offerings may not be enough to satisfy your trading needs.
A broker doesn’t need to charge either low or high fees for it to be considered “good.” As long as the fees are reasonable compared to what the broker is offering the user, you’re good to go.
How to Choose the Best Stock Australia Broker for You
Now that you know what can make a stockbroker good for you, here’s a list of tips you can consider before choosing any of the services on this list (or other ones you may find on the market:
Check for Costs and Fees
Some brokers charge particular commissions for stock transactions, although most of them don’t. Still, you must be aware of any extra fees for services if you want to choose something more appealing to your needs.
Look for Reliable Brokers
It should go without saying, but you must investigate if the company has a proven track record of reliability; that way, you can determine if it’s an option worth considering or if you should look away. All of the companies in this article are reliable and have hundreds of positive reviews.
Consider the Account Minimums
Some brokers require a minimum investment to start trading. Make sure to choose one that either doesn’t have a minimum or offers a reasonable fee to start trading. This is especially important for those who want to start trading without spending too much money at first.
Take a Look at the Company’s Educational/Technological/Market Offerings
Look for services that have as many resources to work as possible. The companies listed on this page have excellent offerings regarding assets, educational content, and platform technology.
All of the options mentioned on this page are great for stock traders. Still, your decision may come down to personal taste, so if you’re interested in starting with stock trading in Australia, make sure to evaluate each of the options listed above and choose something that feels appropriate for your needs!