Brokerage fees are a direct cost of investing in Australian shares and ETFs. While they appear small on individual trades, frequent small trades on high-fee platforms can meaningfully reduce returns over time. This guide calculates the true cost of brokerage and compares major Australian platforms.
Australian Brokerage Fee Comparison (May 2026)
| Platform | ASX ETF fee | Shares fee | Minimum trade | Key features |
|---|---|---|---|---|
| CommSec | $10 (< $1,000), $19.95 (< $10K), 0.12% (> $10K) | Same | $500 | Most popular, linked to CBA accounts |
| SelfWealth | $9.50/trade flat | $9.50/trade | No minimum | CHESS, flat rate |
| Pearler | $6.50/trade (or $0 select ETFs) | $6.50/trade | $1 | Auto-invest, long-term focus |
| Superhero | $2/ETF trade, $5/shares | $5/trade | $100 | Low ETF brokerage; custodian model |
| Stake | $3/trade | $3/trade | No minimum | CHESS sponsored; international stocks via US account |
| CMC Markets Invest | $0 (first ETF trade/month free), $11 after | $11 | No minimum | One free ETF trade per month |
| Macquarie CMA | $19.95 flat | $19.95 flat | No minimum | Premium service, linked banking |
Fees change — always verify current rates on each platform’s website before investing.
The Brokerage Breakeven Trade Size
Brokerage has a larger proportional impact on small trades. A rule of thumb: brokerage should not exceed 0.5% of the trade value to avoid excessive drag.
| Brokerage fee | 0.5% breakeven | 0.25% breakeven |
|---|---|---|
| $2 | $400 | $800 |
| $3 | $600 | $1,200 |
| $6.50 | $1,300 | $2,600 |
| $9.50 | $1,900 | $3,800 |
| $10.00 | $2,000 | $4,000 |
| $19.95 | $3,990 | $7,980 |
Example: Investing $500/month on CommSec ($10 fee) costs 2% in brokerage — before you’ve earned anything. On Superhero ($2 fee), the same trade costs 0.4% — far more reasonable.
For investors making small regular investments, low-brokerage platforms (Superhero, Pearler) are significantly more cost-effective.
True Cost of Brokerage Over Time
Scenario: Investing $500/month for 20 years at 8% return
| Platform | Brokerage/month | Total brokerage paid | Portfolio value lost to fees |
|---|---|---|---|
| CommSec | $10/month | $2,400 | ~$5,500 (compounding effect) |
| SelfWealth | $9.50/month | $2,280 | ~$5,200 |
| Pearler | $6.50/month | $1,560 | ~$3,600 |
| Superhero | $2/month | $480 | ~$1,100 |
The compounding effect means $10 invested rather than lost to fees 20 years ago would be worth ~$46 at 8% — so the true cost of brokerage is much higher than the nominal fee.
Brokerage vs MER: Which Matters More?
For long-term buy-and-hold investors, MER has more total impact than brokerage — because it is charged annually on your entire balance.
| $50,000 portfolio, 30 years, 8% gross return |
|---|
| MER 0.07% (VAS) → $481,000 |
| MER 0.50% → $430,000 |
| MER 1.00% → $381,000 |
A 0.5% MER difference costs $51,000 over 30 years. Total brokerage for a monthly investor over 30 years at $10/trade = $3,600 nominal. MER wins on total impact for long-term holders.
However: For frequent traders, short-term investors, or those making many small purchases, brokerage costs accumulate quickly and matter more.
Minimising Brokerage Costs
Strategy 1 — Choose a low-fee platform: Superhero ($2/ETF), Pearler ($6.50 or $0 select), Stake ($3) all offer materially lower brokerage than CommSec for standard investors.
Strategy 2 — Invest less frequently in larger amounts: Save up 3–6 months of planned investment and buy in one transaction rather than monthly micro-purchases. This halves or thirds brokerage cost.
Strategy 3 — Use platforms with free ETF purchases: CMC Markets offers one free ETF trade per month — suitable for investors making a single monthly ETF purchase.
Strategy 4 — Direct super contributions (no brokerage): Super contributions into index options attract no brokerage — only the fund’s admin fee.
Strategy 5 — Use DRP (Dividend Reinvestment Plans): Many ETFs and shares offer DRP — reinvesting distributions at no brokerage cost.
CHESS-Sponsored vs Custodian Model
Australian brokers use two models:
- CHESS-sponsored: Shares are registered directly in your name on the ASX’s settlement system. If the broker fails, your shares are still yours.
- Custodian: Shares are held in the broker’s name on your behalf. Slightly more counterparty risk if the broker is liquidated, though ASIC requires client asset segregation.
CommSec, SelfWealth, Pearler, and Stake offer CHESS-sponsored. Superhero uses a custodian model.
Related Calculators
- Investment Calculator Australia
- ETF Return Calculator Australia
- How Much to Invest Australia
- Investment Calculators hub
Frequently Asked Questions
What is the cheapest brokerage in Australia in 2026? For ETF trading, Superhero ($2/trade) and Stake ($3/trade) are among the lowest-cost options. Pearler charges $6.50/trade with an auto-invest feature popular with passive investors. CMC Markets offers one free ETF trade per month — suitable for investors buying one ETF monthly. Always verify current rates as fees change.
Is CommSec worth the higher fees? CommSec’s $10–$19.95 brokerage is higher than most alternatives. It may be worthwhile for investors who value integration with CBA banking, margin loans, or familiarity. For cost-conscious passive ETF investors, lower-fee platforms deliver materially better outcomes, especially on smaller trade sizes.
Does brokerage affect my tax return in Australia? Yes — brokerage paid on purchase is added to your cost base (reducing CGT on eventual sale). Brokerage paid on sale is deducted from your capital proceeds (reducing the taxable gain). Keep records of all brokerage fees for tax purposes.
Peakifi may receive compensation from platforms mentioned. This article provides general financial information only and does not constitute a recommendation to use any specific platform. For advice tailored to your situation, speak with a licensed financial adviser through the ASIC financial advisers register or MoneySmart.