CMC Invest – Best Overall

Top Pick
4.80 Expert Score
4.5
4.2
4.3
Expert Verdict

CMC Invest is ideal for Australian investors who want to dollar-cost average into ETFs with regular purchases under $1,000. It's also excellent for those seeking global ETF exposure with CHESS-sponsored security. Active investors benefit from the research tools and international market access. However, if you need auto-invest features or plan to make large single purchases, other platforms may offer better value.

CMC Invest main dashboard
CMC Invest dashboard with ETF screener

Pros

  • $0 brokerage on ASX ETF buys under $1,000/day
  • Full CHESS sponsorship for direct ownership
  • Access to 15+ international markets
  • Advanced ETF screening and research tools
  • $0 brokerage on US, UK, Canadian, Japanese ETFs

Cons

  • $11 fee on trades over $1,000
  • No auto-invest feature
  • 0.60% currency conversion fee

CMC Invest charges $0 brokerage on the first ASX ETF buy order per day for trades under $1,000. All subsequent trades or amounts over $1,000 incur $11 or 0.10% of the trade value, whichever is greater. Sell orders always attract the standard fee.

For international ETFs, CMC offers $0 brokerage on US, UK, Canadian, and Japanese markets. However, a 0.60% currency conversion spread applies to all international trades, which can add up for frequent traders.

Betashares Direct – Best for Auto-Investing

Auto-Invest
4.70 Expert Score
Expert Verdict

Betashares Direct is perfect for hands-off investors who want to set up recurring investments into ETFs without paying brokerage. It's ideal for beginners building their first portfolio with a "set and forget" approach. The platform is less suitable for investors who prioritise CHESS sponsorship or need access to international markets. If direct share ownership matters to you, consider CMC Invest or Pearler instead.

Betashares Direct main dashboard
Betashares Direct portfolio overview

Pros

  • $0 brokerage on ALL ASX ETFs
  • Auto-invest feature for Betashares ETFs
  • $0 brokerage on top 300 ASX stocks
  • Low $10 minimum investment
  • Pre-filled tax statements sent to ATO

Cons

  • No CHESS sponsorship (custodian model)
  • Auto-invest limited to Betashares ETFs only
  • No international ETF access
  • ASX-only platform

Betashares Direct offers genuinely $0 brokerage on all ASX-listed ETFs—not just Betashares products. This applies to buy and sell orders with no trade size restrictions, making it one of the most competitive fee structures available.

The platform also provides $0 brokerage on the top 300 ASX stocks (S&P/ASX 300 constituents). There are no account fees, inactivity fees, or hidden charges.

Pearler – Best for Long-Term Passive Investors

Long-Term
4.60 Expert Score
4.7
4.4
4.5
Expert Verdict

Pearler is designed specifically for long-term passive investors who value CHESS sponsorship and automated investing. The platform deliberately avoids features that encourage frequent trading, making it ideal for "boring" buy-and-hold strategies. It's particularly good for investors who want to build portfolios with multiple ETFs and automatically rebalance with each contribution. The community features also help new investors learn from others' portfolios.

Pearler main dashboard
Pearler portfolio dashboard

Pros

  • Full CHESS sponsorship
  • Advanced auto-invest with rebalancing
  • Community features for learning
  • Flat $6.50 fee regardless of trade size
  • Designed specifically for long-term investing

Cons

  • Higher brokerage than $0 competitors
  • 0.50% FX fee for US trades
  • No fractional shares

Pearler charges a flat $6.50 brokerage fee for all ASX and US trades, regardless of trade size. You can reduce this to $5.50 per trade by prepaying $55 for 10 trades through Pearler Prepay.

For US ETFs, you'll also pay a 0.50% currency conversion fee when moving money between AUD and USD. This is competitive compared to most Australian brokers but higher than Interactive Brokers' 0.002%-0.03% rate.

Visit Pearler Read Full Review

Trading and investing involve risk. The value of your investments can go up or down, and you may lose all or part of your capital. These products may not be suitable for all investors. Please ensure you fully understand the risks involved.

Vanguard Personal Investor – Best for Vanguard ETFs

Low-Cost ETFs
4.50 Expert Score
Expert Verdict

Vanguard Personal Investor is ideal for investors committed to building portfolios exclusively with Vanguard ETFs. If you're following a classic Bogleheads three-fund strategy using VAS, VGS, and VGB, this platform eliminates purchase brokerage entirely. It's less suitable if you want to mix ETF providers, need CHESS sponsorship, or plan to invest in individual stocks beyond the ASX 300. The $10 annual inactivity fee also makes it unsuitable for dormant accounts.

Vanguard Personal Investor main dashboard
Vanguard portfolio overview

Pros

  • $0 brokerage on Vanguard ETF purchases
  • Auto-invest with recurring investments
  • Access to Vanguard's low-cost ETF range
  • Flat $9 sell fee (rare flat sell rate)
  • Trusted global brand

Cons

  • $9 fee for non-Vanguard ETFs
  • No CHESS sponsorship
  • Limited to ASX 300 stocks only
  • $10/year inactivity fee
  • No international market access

Vanguard Personal Investor charges $0 brokerage to buy Vanguard ETFs, making it the cheapest option if you're building a portfolio exclusively with Vanguard products like VAS, VGS, or VHY. Selling Vanguard ETFs costs a flat $9.

For non-Vanguard ETFs and ASX 300 stocks, both buy and sell orders cost $9 flat. This is competitive for larger trades but expensive for small, regular investments compared to $0 alternatives.

Webull – Best for Zero-Fee ETF Trading

Zero Fees
4.50 Expert Score
3.8
3.5
4.3
Expert Verdict

Webull is excellent for cost-conscious investors who want $0 ETF trading across both ASX and US markets with the security of CHESS sponsorship for Australian holdings. The fractional US investing makes it ideal for those building positions in expensive US ETFs. The platform's advanced charting tools also appeal to more active investors who want technical analysis capabilities alongside their ETF holdings.

Webull main dashboard
Webull trading dashboard

Pros

  • $0 brokerage on ALL ASX and US ETFs
  • Full CHESS sponsorship for ASX
  • Fractional US shares available
  • Auto-invest feature
  • Advanced charting and analysis tools

Cons

  • 0.50% currency conversion fee
  • Limited to ASX, US, and Hong Kong markets
  • Newer platform in Australia

Webull offers genuinely $0 brokerage on all ASX and US ETFs—no trade size limits, no daily caps, and no conditions. For regular stock trades, the fee is 0.03% of trade value (minimum $1) for ASX and 0.025% (minimum $1) for US stocks.

Currency conversion for US trades costs 0.50% (50 pips), which is standard among Australian brokers but significantly higher than Interactive Brokers. There are no account fees or inactivity fees.

Visit Webull Read Full Review

Trading and investing involve risk. The value of your investments can go up or down, and you may lose all or part of your capital. These products may not be suitable for all investors. Please ensure you fully understand the risks involved.

Superhero – Best Budget Option

Budget Pick
4.40 Expert Score
4.5
4.1
4.7
Expert Verdict

Superhero is ideal for budget-conscious beginners who want simple, low-cost access to ASX and US ETFs without the complexity of more advanced platforms. The $2 flat fee makes it very affordable for small, regular investments. However, the lack of CHESS sponsorship means your shares are held in an omnibus account rather than directly in your name. If direct ownership is important to you, consider CMC Invest, Pearler, or Webull instead.

Superhero main dashboard
Superhero portfolio overview

Pros

  • $2 flat brokerage for ASX trades
  • US$2 for US trades
  • Fractional US shares
  • Access to 7,000+ securities
  • Low $10 minimum investment

Cons

  • No CHESS sponsorship (custodian model)
  • ~1.0% currency conversion fee
  • No auto-invest feature

Superhero charges a flat $2 brokerage for all ASX trades including ETFs, regardless of trade size. For trades over $20,000, the fee becomes 0.01% of trade value. US trades cost US$2 flat (or 0.01% over US$20,000).

The currency conversion fee is approximately 1.0%, which is on the higher end compared to competitors. This makes Superhero less cost-effective for frequent US ETF trading but still competitive for occasional international purchases.

Visit Superhero Read Full Review

Trading and investing involve risk. The value of your investments can go up or down, and you may lose all or part of your capital. These products may not be suitable for all investors. Please ensure you fully understand the risks involved.

Interactive Brokers – Best for International ETFs

Global Access
4.60 Expert Score
4.7
4
4.8
Expert Verdict

Interactive Brokers is best for experienced investors who want global market access and the lowest possible currency conversion costs. If you're regularly investing in international ETFs, the FX savings alone can offset the higher ASX brokerage. The platform's complexity makes it less suitable for beginners. However, IBKR's Global Trader app provides a more streamlined mobile experience for those intimidated by the full Trader Workstation platform.

Interactive Brokers main dashboard
Trader Workstation dashboard

Pros

  • Access to 150+ global markets
  • Lowest currency conversion fees (0.002%-0.03%)
  • Fractional shares on US and European ETFs
  • Professional-grade trading tools
  • No inactivity or custody fees

Cons

  • A$6 minimum for ASX trades
  • Complex platform for beginners
  • Currency funding can be confusing

Interactive Brokers charges A$6 or 0.08% of trade value (whichever is greater) for ASX ETFs. US ETF trades start from US$0.0035 per share (tiered pricing) or US$0.005 per share (fixed pricing) with a minimum of US$1 per order.

The real advantage is currency conversion at just 0.002% to 0.03%—dramatically lower than the 0.50%-1.0% charged by most Australian brokers. For investors regularly buying international ETFs, this can save hundreds of dollars annually.

Visit Interactive Brokers Read Full Review

CFDs are complex instruments with a high risk of losing money rapidly due to leverage. 62.5% of retail CFD accounts lose money when trading CFD’s with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What Should You Look for in an ETF Platform?

Choosing the right ETF platform depends on more than just brokerage fees. While a $0 brokerage offer looks attractive, other factors like CHESS sponsorship, currency conversion costs, and auto-invest features can significantly impact your long-term returns and investment experience.

Why Does CHESS Sponsorship Matter for ETF Investors?

CHESS (Clearing House Electronic Subregister System) sponsorship means your ETF units are registered directly in your name with a unique Holder Identification Number (HIN). This provides several important benefits for Australian investors.

With CHESS sponsorship, you have direct legal ownership of your ETFs. If your broker goes bankrupt, your holdings remain yours and can be transferred to another broker. Platforms like CMC Invest, Pearler, and Webull offer CHESS sponsorship, while Betashares Direct, Vanguard Personal Investor, and Superhero use custodian models where shares are held on your behalf.

The custodian model isn't inherently risky—your investments are still legally separated from the broker's assets. However, transferring to another broker typically requires selling your holdings and realising any capital gains, which can be a significant tax disadvantage.

How Do Currency Conversion Fees Affect International ETF Returns?

When buying US or international ETFs, currency conversion fees can significantly erode your returns—often more than brokerage costs. Most Australian brokers charge 0.50% to 1.0% on currency conversions, meaning a $10,000 investment costs $50-$100 in FX fees alone.

Interactive Brokers stands out with FX fees as low as 0.002%-0.03%, saving substantial amounts for frequent international investors. However, for investors primarily buying ASX-listed international ETFs (like VGS or IVV), currency conversion happens within the fund itself, avoiding direct FX fees on your trades.

ETF Brokerage Fee Comparison

ETF Brokerage Fee Comparison Chart A bar chart showing ASX ETF brokerage fees for CMC Invest ($0), Betashares Direct ($0), Pearler ($6.50), Vanguard ($0-$9), Webull ($0), Superhero ($2), and Interactive Brokers ($6). The chart highlights that four platforms offer $0 brokerage on ETFs. $0 $2.50 $5 $7.50 $10 CMC $0* Betashares $0 Pearler $6.50 Vanguard $0** Webull $0 Superhero $2 IBKR $6 $0 brokerage platforms *Under $1,000/day | **Vanguard ETFs only

How Are ETFs Taxed in Australia?

Understanding the tax implications of ETF investing is essential for Australian investors. The Australian Taxation Office (ATO) treats ETF investments similarly to shares, with capital gains tax (CGT) applying when you sell your units at a profit.

What Is the CGT Discount for ETF Investors?

Australian resident individuals who hold ETF units for more than 12 months qualify for the 50% CGT discount. This means only half of your capital gain is included in your assessable income, significantly reducing your tax liability on long-term investments.

For example, if you sell ETF units after 18 months and make a $10,000 capital gain, only $5,000 is added to your taxable income. This discount makes buy-and-hold strategies particularly tax-effective and is one reason why long-term ETF investing is popular among Australian investors.

Complying superannuation funds receive a 33.33% CGT discount instead of 50%. Companies are not eligible for any CGT discount. The discount only applies to assets held for at least 12 months before the CGT event (sale) occurs.

Do You Need to Report ETF Distributions?

Yes, all ETF distributions must be declared in your tax return, even if you reinvest them through a Distribution Reinvestment Plan (DRP). ETF distributions can include various components: dividends, franking credits, interest, foreign income, and capital gains distributed by the fund.

Most ETF providers issue an annual tax statement (often called an AMMA statement) that breaks down these components and indicates where to report each amount in your tax return. If your ETF invests in Australian companies that have already paid tax, you may be able to claim franking credits to reduce your tax liability.

According to ASIC's MoneySmart guidance, keeping accurate records of your ETF purchases, including brokerage costs and any DRP reinvestments, is essential for correctly calculating your cost base when you eventually sell.

What Else Should Australian ETF Investors Keep in Mind?

How Are ETF Platforms Regulated in Australia?

All ETF trading platforms operating in Australia must hold an Australian Financial Services Licence (AFSL) issued by ASIC (Australian Securities and Investments Commission). This licence ensures platforms meet strict requirements around financial resources, competence, and conduct.

Before choosing a platform, you can verify their AFSL status on ASIC's professional register. Regulated platforms must keep client money in segregated trust accounts, separate from the company's own funds. This provides protection if the platform experiences financial difficulties.

ETF issuers (like Vanguard, Betashares, and iShares) are also regulated by ASIC and must provide Product Disclosure Statements (PDS) and Target Market Determinations (TMD) for each fund. These documents outline the ETF's investment strategy, risks, and fees. For more detailed trading platform comparisons, see our guide to stock trading platforms in Australia.

What Is the Difference Between Active and Passive ETFs?

Passive ETFs (also called index ETFs) aim to track a specific index, like the S&P/ASX 200, by holding the same securities in the same proportions. They typically have very low management fees—as low as 0.04% p.a. for Betashares A200—because there's minimal active decision-making involved.

Active ETFs employ fund managers who make investment decisions to try to outperform a benchmark. These ETFs have higher management fees (typically 0.50%-1.00% p.a.) but may potentially deliver better returns. According to InvestSMART, 49 new Australian ETFs launched in the year to June 2025, with 25 being active strategies.

For most long-term investors, low-cost passive ETFs have historically delivered better net returns after fees. However, active ETFs can provide value in less efficient markets or specific strategies like income generation.

Final Thoughts

The best ETF platform for you depends on your specific needs. CMC Invest offers the best all-round package with $0 brokerage on small trades, CHESS sponsorship, and global market access. For set-and-forget investors, Betashares Direct provides genuine $0 brokerage with auto-invest features.

If CHESS sponsorship matters and you want automated investing, Pearler delivers both despite slightly higher fees. Vanguard Personal Investor is unbeatable if you're exclusively using Vanguard ETFs, while Webull offers the rare combination of $0 fees and CHESS sponsorship.

Budget-conscious beginners should consider Superhero's $2 flat fee, accepting the custodian trade-off. Serious international investors will find Interactive Brokers' ultra-low FX fees and 150+ market access worth the complexity.

With Australia's ETF market now exceeding A$280 billion and 20% of investors holding ETFs, choosing the right platform can save thousands in fees over your investing lifetime. For active traders interested in derivatives alongside ETFs, explore our CFD broker comparisons.