Best ETF Trading Platforms Australia – Top 4 ETF Trading Platforms Compared

Fact Checked by Gary McFarlane

One of the most difficult aspects of investing is risk management, without it, you’re only setting yourself up for failure. Part of a solid risk management strategy is having a diverse portfolio, it greatly reduces your risk by minimizing your exposure to a single asset, shielding you from losses if an asset has a bad year or goes into insolvency. The drawback to having a diverse portfolio is the amount of time, effort, and research it takes to build a solid portfolio. However, there is a way you can attain a well-balanced portfolio with far less effort, this is where investing in an ETF could be useful. When you invest in an ETF you gain indirect exposure to a variety of related assets – perfect for anyone looking to diversify while still investing in a singular market. 

With the recent release of the world’s first Bitcoin ETF, there are heaps of investors flocking to take advantage of these low-risk high-stability investments. Therefore it makes sense we cover the best ETF trading platforms in order to help you make an informed decision on which broker is best for your needs. To provide our readers with some additional support, we’ve also included a comprehensive guide on exactly how you can start investing in ETFs with top-rated brokerage eToro. 

#1 ETF Trading Platform Australia – eToro

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Best ETF Trading Sites – Quick Pick

We appreciate that not everyone has the time to read in-depth reviews on brokerages and would much rather have the information distilled into something you can understand at a glance. Well, if that sounds like you, we’ve got you covered! You can see our one-line summaries for the best ETF trading platforms below.

  • eToroOverall Best ETF Trading Platform
  • Capital.com – Best Educational ETF Trading Platform
  • Stake – Simplest to Use ETF Trading Platform 
  • AvaTrade – Most Accessible ETF Trading Platform

What is ETF Trading?

If you’re reading this guide the chances are that you’re interested in ETF trading. So, it seems fitting that before we take a deep dive into the best ETF trading platforms in Australia, that we first discuss what an ETF actually is. Opening 50+ positions can be an arduous task, but to make it easier, ETFs were created. A brokerage or fund manager bundles a group of related assets together to allow for easy investment, this benefits the investor because they can enjoy a diverse portfolio with minimal effort and it benefits the broker because they own the underlying assets. An ETF is often designed to mirror the performance of a specific index (e.g. the FTSE 100). However, this isn’t a requirement for an ETF, it’s not uncommon to see them composed simply of assets from the same industry. When you invest in an ETF you don’t have any direct exposure to the underlying assets and do not own them, despite the fact that you can still earn dividend payments (if the fund passes them on). 

Top 4 Best ETF Trading Platforms

It can be extremely hard to filter through all the contradictory information floating about on the internet. So, to make selecting the best ETF trading platform a bit easier for our readers, we’ve compiled a list of our top 4 picks for the best ETF broker, complete with an in-depth review and fee overview for each!

1. eToro – Overall Best ETF Trading Platform Australia

The most well-known platform on our list, eToro, was launched in 2007 and has since grown to serve over 20 million customers. eToro offers users a diverse set of features that will keep even the most experienced traders happy. eToro is aimed at users of all skill levels, although they have implemented some additional features to help new users get started on the right foot, making them one of the best ETF brokers for beginners and experienced traders alike.

Security & Privacy

Security should always be the firstmost priority for a brokerage, after all, brokers and exchanges are extremely common targets for hackers due to their large cash reserves. To help protect against this, eToro complies with regulations set out by Australia’s regulatory body, ASIC. However, that’s far from the only security measure eToro has implemented. Another way eToro keeps your account secure is by using SSL encryption to obscure sensitive information, this means that even if someone were to intercept your data, they wouldn’t be able to use it. Additionally, eToro users can benefit from enabling 2-factor authentication (2FA), this prevents any important account actions from completing until you enter a code sent to the mobile number associated with your eToro account. 

Features

Because eToro has to cater to the needs of over 20 million users, it makes sense that they’ve tried to ensure the majority of features they’ve implemented are relevant to users of every skill level, this ensures no customers are left alienated. One of these features is eToro’s Copy Portfolios, a way customers can invest in a range of companies at once. This allows beginners to diversify their account with minimal effort, in turn reducing the risk of an investment going wrong. Another “copy” feature eToro has implemented is CopyTrading, a way for investors to automatically mirror the traders of users with more experience, allowing you to earn a passive income easily while learning trading strategies. If all that didn’t convince you that eToro is the best ETF broker in Australia, then you might be interested to hear that eToro supports a huge range of markets and investment types. And to finish off, eToro comes equipped with powerful charting tools, allowing you to plot even the most complex trading strategies. 

eToro Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 (Monthly)

 

Pros

  • CopyPortfolio
  • CopyTrading
  • Regulated
  • SSL encryption
  • 2FA
  • Powerful charting tools
  • Range of markets

Cons

  • Lacking MetaTrader support
  • Limited leverage

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Capital.com – Best Educational ETF Trading Platform Australia 

Founded in 2016, Capital.com is on the younger side when it comes to ETF trading platforms. However, don’t let that deter you, despite its age, Capital.com has managed to create a platform that offers an excellent trading experience, for all users, regardless of skill level. Although those without much previous trading experience may benefit from Capital.com even more, because of the plethora of trading/investing guides they offer. 

Capital.com review

Security & Privacy

In modern times, breaking into an exchange or brokerage is the equivalent of pulling off a daring bank heist, the only difference is it’s far less risky. A nefarious individual can hack into an exchange from anywhere in the world, without having to ever be physically present. Because of this, brokerages need to ensure their security is top-notch, or risk losing both a huge amount of funds and a huge number of customers. Capital.com has achieved this through strict regulation by ASIC and the implementation of a whole range of industry-leading technology. One of the largest issues brokerages face is figuring out how to get sensitive information from your device back to their servers. To make sure this is done safely, Capital.com uses Transport Layer Security, a cryptographic protocol designed to facilitate secure communication over a network. On top of this, Capital.com takes great care to ensure that customer data is stored correctly, as such, they’re completely PCI Data Security compliant, which should provide privacy-focused investors some peace of mind. Even in the worst-case scenario of Capital.com themselves getting compromised, users are protected with FDIC insurance. 

Features

Capital.com is an excellent all-around broker, but its attitude toward beginners is where they really shine. They take the stance that better-informed people make better investors, as such they’ve chosen to include a huge amount of educational resources that will give Capital.com’s customers a serious edge. To take their educational offerings to the next level, Capital.com has also created an app called “Investmate” that provides users with an easy way to learn how to trade on the go. And to round off, Capital.com customers can benefit from its incredible simple-to-use interface, allowing users to focus on trading rather than learning how to use the platform. All this being said, Capital.com certainly hasn’t neglected those with previous trading experience, they allow users to trade in a heap of different markets, perfect for anyone wanting to manage a range of investments on one platform. Additionally, TradingView integration has been utilized to provide investors with comprehensive charting tools, ensuring even the most complex trading strategies can be used. 

Capital.com Fees

Fee Type Amount
Commission 0%
Withdrawal Fee $0
Deposit Fee $0
Inactivity Fee $0

 

Pros

  • Regulated by FCA & ASIC
  • PCI Data security compliant
  • Transport layer security
  • FDIC insurance 
  • TradingView integration
  • Range of guides
  • Investmate 
  • Easy-to-use interface

Cons

  • Could benefit from a greater range of ETFs
  • Not available in certain countries

 76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

3. Stake – Simplest to Use ETF Trading Platform Australia 

Founded in 2017, Stake is something of a newcomer to the investment space, however, they’ve certainly managed to make a big splash in the short time they’ve been operating. They aim to be Australia’s Robinhood alternative, providing users with an easy-to-use, mobile ETF trading platform. Although originality is great, this may not be a bad strategy considering that Robinhood only operates in the US and has still enjoyed massive success. 

Security & Privacy

When you don’t have a long track record to do the talking on your behalf, you definitely need to have strong security measures in place to ensure customers don’t face any issues. Although Stake isn’t particularly transparent in regards to their security (not necessarily something to be worried about), despite this we’ve still managed to find out some of the measures they’ve implemented to ensure customer safety. Firstly, Stake makes sure to follow regulations set out by both the FCA and ASIC, meaning it’s unlikely that they’re doing anything they shouldn’t be behind the scenes. All Stake users also enjoy the benefits of SIPC insurance on securities balances up to $500,000 and $250,000 for cash balances. Therefore, those using Stake to invest in ETFs needn’t worry about what happens to their investment in the event of Stake getting compromised or going into insolvency. On top of this, Stake allows its users to set up 2FA when using their app, something that’s crucial for account safety in the modern world. 

Features

Stake has done well to create an incredibly simple platform that makes investing as easy as possible. They’ve done this by providing users a no-frills trading experience that does away with all the complicated jargon and investment types. While this results in a platform that just about anyone can use, however, this comes at the cost of alienating users with previous investment experience. In a similar promotion to Robinhood, users can receive a mystery stock from stake when they either refer a user or sign up for the first time. Currently, the stock you’ll receive will be either GoPro, Nike, or Dropbox. If you plan on regularly trading then you might be intrigued by a Stake Black account, Stake’s premium account. The benefits you can receive from a $9 Stake Black membership are access to advanced order types and the ability to trade using unsettled funds. While these features do add value to the platform, it seems odd to hide access to order types (a common trading feature) behind a paywall. 

 

Stake Fees

Fee Type Amount
Commission 0%
Withdrawal Fee $0
Deposit Fee $0
Inactivity Fee $0


Pros

  • Regulated by ASIC & FCA
  • SIPC insurance 
  • 2FA
  • Robinhood alternative
  • Mystery stock 

Cons

  • Stake Black lackluster
  • Order types are hidden behind a paywall

67% of retail investor accounts lose money when trading CFDs with this provider.

4. AvaTrade – Most Accessible ETF Trading Platform Australia  

Initially launched in 2006, AvaTrade has grown to be one of the best-known ETF trading platforms out there. They’ve achieved this by packing their platform full of useful features that can assist the vast majority of traders, regardless of experience. On top of this AvaTrade manages to reach a far greater audience than some competitors by allowing users to choose from a range of different trading accounts. 

Security & Privacy

If you have some security concerns about AvaTrade, we’re here to put them to rest. Firstly, AvaTrade is regulated by ASIC, meaning that they’re regularly audited and have to comply with strict regulations surrounding the protection of their customers. Any sensitive data you have to provide AvaTrade (passwords, emails, etc) are protected by 256-bit SSL encryption. This ensures that even if a hacker were to intercept your data before it reached AvaTrade’s servers, they wouldn’t be able to use it. And to finish off, AvaTrade has implemented something called McAfee secure, a technology designed to protect important documents when having to upload them (passport, driving license, credit card, etc).

Features

As we briefly mentioned, AvaTrade is able to reach a lot of additional users by giving customers the option of selecting an account that works best for them. Other than the standard AvaTrade account your options are, an Islamic account that adheres to Islamic financial principles and a professional traders account that provides you with access to some advanced trading features and greater leverage. To entice beginners AvaTrade has made sure to include some top-quality video tutorials that cover the basics of trading, as well as touching on some more advanced information. Educational material is always a welcome bonus, as better informed traders will usually end up making better, more consistent profits. On top of this, AvaTrade caters to the mobile traders with an app called AvaTradeGo, a well-refined, fully-featured, trading app that gives you the power to take advantage of sudden market swings from anywhere in the world.

 

AvaTrade Fees

Fee Type Fee Amount 
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $50 after 3 months & $100 after 12 months

 

Pros

  • 256-bit SSL encryption
  • Regulated by ASIC
  • McAfee Secure
  • Video guides
  • Islamic account
  • Professional account
  • AvaTradeGO for mobile trading

Cons

  • Could benefit from some more advanced guides
  • Not available everywhere
  • Missing a few tickers

Your Capital is at Risk.

Best ETF Trading Platforms Compared

We appreciate that it can be difficult to pull relevant information from reviews, which is why we’ve created this table comparing something that matters to every trader; fees!

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
Capital.com 0% $0 $0 $0
Stake 0% $0 $0 $0
AvaTrade 0% $0 $0 $50 after 3 months, $100 after 12 months

 

Which Platform is Best For You?

When you’re selecting your first ETF trading platform, you must weigh the offerings of each platform against your personal needs. While many platforms throw financial jargon at you and claim to deliver “never before seen” features, few rarely deliver. So, to help make your decision easier, we’ve broken down 3 factors that will matter to almost every trader.

1. Fees

Nobody wants their profits to be eaten into by overly expensive or hidden fees. While you’d think multi-million dollar brokerages wouldn’t need to hide random fees in their platforms, unfortunately, many still do. So here are a few fees you should always research before committing to a broker. Firstly, make sure your chosen brokerage offers commission-free trading, has minimal deposit/withdrawal fees and offers tight spreads. Another steep fee to watch out for is credit/debit card fees, because these fees are rarely cheap, it’s worth ensuring your chosen platform supports a few payment methods. 

2. Simplicity

Although this remains true for all traders, it’s particularly so for beginners. If you choose a brokerage that has tonnes of submenus and a busy interface, it’ll take your time and attention away from investing, potentially costing you money in the long run. While you’ll, of course, eventually get used to a particular platform, there’s no reason for them to not adhere to today’s simplistic design standards. 

3. Additional Features

While the majority of brokerages offer a similar set of base trading features, you should always look at their lesser-known offerings. You never know what features will come in handy, for example, beginners using eToro could benefit hugely from CopyTrading, allowing users without much trading experience to earn money and learn strategies from more experienced users. 

 

How to Use the Best ETF Trading Platform

Learning how to use a new ETF trading platform can be a time-consuming task, so to help our readers start investing a bit quicker, we’ve provided this comprehensive guide, covering everything you’ll need to start investing in ETFs with eToro in just a few minutes. 

1. Sign Up

Before you can start investing you’ll need to register with a trusted broker. For the purposes of this guide, we’ll be using eToro because they’re the perfect platform for both beginners and experienced traders. Simply type “eToro.com” into your browser’s search bar, press “Join Now” and fill in the required information. 

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Verify ID

Because eToro is a regulated ETF trading platform, you’ll need to verify your identity before you can start trading. Luckily, it only takes a couple of minutes to do so, all you’ve got to do is provide a photo ID (passport, driving license) and proof of address (bank statement, utility bill).

 

3. Fund Account

After you’ve verified your identity, you’ve got one more step to complete before you can invest in an ETF with eToro. You’ll need to deposit some funds into your account. To do this, click on the button marked “Deposit Funds”, type in the number you plan on investing, and press “Deposit”. To ensure all customers have an easy time depositing, eToro supports payments using debit/credit cards, bank transfers, and e-wallets (PayPal, Skrill).

4. Invest in an ETF

Now that your account is funded, you’re ready to invest in an ETF! Simply type the name of the ETF you’d like to invest in, into Toro’s search bar, select the relevant option, press “Trade”, enter the amount you’d like to invest, and press “Open Trade”. After doing this, your investment will be automatically credited to your account and you’ll be able to manage it from the “portfolio” section of your account.

Conclusion

To briefly summarize, investing in bitcoin ETFs is a great option for anyone looking for a relatively low-risk, stable investment, and with the recent release of Bitcoin ETFs, you have a far larger upside potential than, for example, with an S&P 500 ETF. That being said, investing in an ETF certainly isn’t risk-free, so you should always make sure to do your due diligence before parting with your hard-earned money. Half of the battle is selecting the right ETF broker, without doing research you can easily find yourself locked into a sub-par brokerage that doesn’t have the features you need. So, to ensure this doesn’t happen to our readers, we’ve got a recommendation for you! After comparing the pros and cons of heaps of brokerages, we can wholeheartedly recommend eToro for anyone looking for an ETF trading platform in Australia. eToro offers commission-free trading, a huge range of markets, and best of all, phenomenal security. We hope you enjoyed our guide on the best ETF trading platforms, if you’ve still got any questions, you might be able to find the answer down below in our frequently asked questions section. 

Best ETF Trading Platform Australia – eToro

1
$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

FAQs

What is the Best ETF Trading Platform?

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What is an ETF?

 

About Jay Leonard PRO INVESTOR

Jay is a UK based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. He has a great deal of hands on experience in the space and a current focus on institutional adoption.