The Cheapest ways to buy Shares in Australia

cheapest way to buy sharesBuying shares in Australia is still pretty expensive compared to similar platforms in the US.  For example, those in the US can trade using Robinhood (a popular platform) and pay zero commissions!

Thankfully we’re starting to see some more competition in Australia.  As a result, the price of buying and selling shares is starting to come down.

Here are the cheapest share trading platforms in Australia:

The Cheapest Platforms for Buying Australian (ASX) Shares

Superhero – $5 per trade

Superhero is a a new share trading platform in Australia with super low pricing!   You’ll pay just $5 per trade.    The minimum trade size is $100.  Although, I wouldn’t recommend buying shares through Superhero with just $100.  It’s better to save up a bit more so the fees aren’t such a huge chunk of your purchase.

Superhero offers PayID deposits.  This means you can transfer funds from your bank account into Superhero pretty much instantly.

The one downside of Superhero is you don’t get your own HIN.  This number is used to transfer shares easily between platforms.  For most people this won’t be an issue.

Selfwealth – $9.50 per trade

Selfwealth used to be the cheapest place to buy ASX shares.  However they haven’t lowered their brokerage fees to compete with Superhero.  At $9.50 per trade you’ll be paying almost double what you’d pay on Superhero.  One upside is you get your own HIN.

As a platform Selfwealth is starting to look and feel a bit dated and the mobile app is very buggy.  But it is a reliable and popular choice with a large customer base.

Commsec Pocket – $2 per trade

Commsec pocket lets you buy 6 different ETFs for just $2 per trade.  If you’re completely new to investing and just want to own an investment, then Commsec pocket might be for you.  Obviously the platform is quite limited with just 6 different options, but it is a fairly fail-safe to get started.

EasyEquities 0.01% per trade

EasyEquities is a South African trading platform that recently bought its product to Australia.  They have a very competitive fee structure.  Instead of a flat fee, you pay a % fee.  For a $10 trade, you’d pay just $0.01.  And because it’s a percentage fee, you can invest small amounts of cash.

I find the EasyEquities platform to be really poorly designed and difficult to use.  It definitely needs to be updated and is not suitable for serious traders.

The Cheapest Platforms for Buying US Shares

If you’re looking to invest in companies like Apple, Tesla, Amazon and Netflix, then you need a platform for US share trading.  A few years ago it would cost a fortune to buy US shares in Australia.  But now, thanks to some brand new platforms you can buy US shares cheaply!

eToro – $0 per trade

eToro offers $0 commissions on US share trading.  It’s also possible to invest in fractional or partial shares.  This means you can buy just $50 worth of a share (or any other dollar amount over $50).  This makes it really easy to build a diversified portfolio with less cash!  Hopefully fractional shares will one day be offered by ASX brokers.

Shares on eToro

You can find out more about eToro here

Stake – $0 per trade

Stake is just like eToro.  They also offer $0 commissions of US shares.  Although Stake only offers shares (eToro offers cryptos, forex and commodities too), they do have a very large range of US shares.  They list more shares than eToro.  Just like on eToro you can also invest in fractional shares and start trading with just $10.

P.S – Get a free Stock (either GoPro, Dropbox or Nike) when you join using this Stake referral code.

The Cheapest Micro-Investing Apps

Do you want to invest in shares, but don’t know anything about investing or what shares to buy!  Then you should try microinvesting.  You can invest in a diversified portfolio of shares with as little as $5.  These are the best, and cheapest micro-investing platforms in Australia:

Spaceship – Free up to $5k

Spaceship Voyager invests your money in one of two different portfolios.  The Universe portfolio is made up stocks that Spaceship thinks will be important and valuable in the future.  Think companies like Apple and Tesla.  The other portfolio is an index portfolio made up of 200 top companies.  The best thing about Spaceship is the first $5k you invest will be fee free!!! This means you can grow your nest egg without having fees eat into your balance.  Even after $5k the fees are the cheapest in the industry.

You can invest in Spaceship Voyager with just $5.  You don’t need a huge amount of cash.  And you can setup recurring investments.

Spaceship is currently the app I use to do most of my investing.

P.S – Get $5 free on Spaceship using this Spaceship referral code

Raiz – $2.50 per month

Raiz invests your money in one of 7 different portfolios made up of shares and bonds.  You can choose to invest conservatively or aggressively, or even choose a portfolio made up of sustainable and ethical companies.  Just like Spaceship, you can start investing with as little as $5.  And you can setup recurring investments.  You can even setup Raiz to track your spending and invest your spare change.

I use Raiz alongside Spaceship.  (Spaceship is my growth portfolio and Raiz is more of an index investment for me).

P.S – Get $5 free using this Raiz Invite Code.

In Conclusion

If you want to pay the lowest fees to invest in shares, then using a micro-investing app like Spaceship will be the best bet.  The downside is you don’t get to choose the individual shares you invest in (although this is probably an upside – most retail investors lose money trying to pick and time stock purchases).

Investing in US shares is actually way cheaper than investing ASX shares for Australians.  Both eToro and Stake have similar zero commission platforms.  You’ll pay a small FX fee when you AUD is converted into USD.  But this fee is small and much cheaper than brokerage costs.

For investing in ASX shares, it’s hard to go past Superhero.  I would rather have lower fees on Superhero than the HIN on Selfwealth.

Platforms to Avoid

Make sure you avoid CFD trading platforms.  CFDs are for trading, not investing for the long term.  Platforms like Plus500 advertise share trading, but you’re actually just trading a contract.  You never own the actual share.  All of the platforms here let you invest in the underlying asset or a fund which owns the underlying asset.

 

This post is for educational purposes and should not be considered as investment advice. This post is based on individual experience and journalistic research.

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