In order to trade successfully, it is very important to choose the right broker. in Australia, a large number of companies provide access to trading and you will have to choose the one for you among them. It is important to work only with reliable brokers providing all the required instruments for trading based on your trading strategy. TU analysts have selected the best stock brokers for fractional shares in Australia 2024. You can compare their features and trading conditions.
1
eToro - Best for fractional shares in Australia
The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA.
👍 Advantages of trading with eToro for traders from Australia:
•High level of reliability ensured by the licenses of respected regulatory authorities and participation in the compensation funds.
•Wide selection of assets quoted at stock exchanges in the UK, U.S., Australia and Asia.
•An opportunity to combine active trading with social trading and passive investing.
•Zero-fee trading of a number of stocks.
•Access to ready-made diversified asset portfolios with various risk levels.
•Provision of leverage, educational materials on various markets and user-friendly trading platforms that can run on any device.
•Zero fees for portfolio management, depositing funds and account maintenance.
👎 Disadvantages of eToro for traders from Australia:
•High minimum deposit for users of a number of countries.
•No live chat on the website for quick connection to customer support.
2
Revolut - Best for fractional shares in Australia
Revolut is a British fintech company that has been providing investors with accounts for trading precious metals, cryptocurrencies, and stocks listed on U.S. exchanges since 2015. The broker offers its clients access to investing in stocks and ETFs on European stock exchanges. For organizations and private clients, the company offers a multi-currency account with the possibility of exchanging currencies at the current inter-bank exchange rate. Revolut is supervised by the Financial Services Authority (FSA).
👍 Advantages of trading with Revolut for traders from Australia:
•In addition to stock trades, customers can trade cryptocurrencies and precious metals.
•The broker offers commission-free trading plans.
•The minimum number of shares to buy is 0.00000001.
•There are no minimum deposit requirements.
•Social trading is available, which allows newcomers to the stock market to copy trades of successful traders.
•Communication with the support service via chat is available in the mobile application 24 hours a day.
•There is no fee for opening and maintaining a trading account.
👎 Disadvantages of Revolut for traders from Australia:
•Stock trading is currently only available to UK residents.
•Operations in precious metals and cryptocurrencies are not regulated by supervisory authorities.
•The company does not offer fiduciary management of its investment portfolio.
3
Robinhood - Best for fractional shares in Australia
Robinhood is an investment company that has provided services on the stock market for over ten years. Its owners engaged in software development for hedge funds ab initio and then teamed up to create a company that makes investing available to all. The broker is licensed to provide its services and is a member of the Financial Industry Regulatory Authority (FINRA, CRD#: 165998/SEC#: 8-69188) in the United States. There is no information about the broker receiving awards for their activities.
👍 Advantages of trading with Robinhood for traders from Australia:
•trading stock market instruments without paying commissions;
•the ability to trade from mobile devices;
•hassle-free registration procedure.
👎 Disadvantages of Robinhood for traders from Australia:
•the broker does not offer Forex instruments for trading;
•there are no offers for receiving passive income;
•training materials on the website are limited;
•the company works with clients exclusively from the US;
•lack of online support.
4
SogoTrade - Best for fractional shares in Australia
SogoTrade is a US registered broker that has been operating since 1986. It offers a wide range of stock market assets, proprietary trading platforms with built-in analytics, and forecasting tools. The broker is a member of FINRA (CRD#: 17912/SEC#: 8-35930) and SIPC, and has offices in New York and Chesterfield (Missouri). The company's regional service center also serves customers from China, Taiwan, and Hong Kong. In 2020, the financial portal GOBankingRates named SogoTrade as the best online broker for day trading and for novice traders.
👍 Advantages of trading with SogoTrade for traders from Australia:
•FINRA and SIPC membership.
•A variety of investment products for generating passive income, including diversified portfolios of securities with different levels of risk and reward.
•The minimum deposit for the Cash Account starts at $0.
•A wide range of analytical tools such as stocks and options, screeners, P&L calculators, daily newsletters, third-party analyst ratings, reviews, and more.
•The existence of a proprietary platform for online options trading.
👎 Disadvantages of SogoTrade for traders from Australia:
•The broker withholds $2.88 for market trades in stocks, as well as a commission for each contract when trading options.
•There are no cash bonuses for opening an account or making a deposit.
•The minimum investment for working with investment portfolios is $25,000.
5
Phillip Capital - Best for fractional shares in Australia
Phillip Capital is a broker of PhillipCapital Inc Group, founded in Singapore in 1975. The PhillipCapital subsidiary was established in 2010. Its main office is located in the United States in the Chicago Chamber of Commerce building. Since July 2014, the broker has been regulated by the US Commodity Futures Trading Commission (CFTC) and is also registered with the FINRA (CRD#: 173869/SEC#: 8-69558), SIPC, and the OCC. PhillipCapital provides direct access to the stock market and offers over 2,000 instruments for trading on 30 exchanges in 16 countries. The company also provides a wide range of clearing, financial, and executive services.
👍 Advantages of trading with Phillip Capital for traders from Australia:
•No brokerage fees for trading stock market assets.
•Providing access to major American and global exchanges, including CME, EUREX, CBOT, DME, IEX, COMEX, NYMEX, NFX, ICE US, CFE (CBOE), and ICE EU.
•Uses proprietary software.
•Membership in all Asian futures exchanges, which allows traders to expand the list of available trading tools.
•Large selection of supported trading platforms.
•Regulated by CFTC and SEC, membership in FINRA and SIPC.
👎 Disadvantages of Phillip Capital for traders from Australia:
•High minimum deposit amount of $5,000.
•Technical support is provided by phone, fax, or email; there is no online chat.
•It does not cooperate with electronic payment systems and charges a commission for withdrawing funds from accounts.
Commissions & Fees
Brokerage fees are the amount of money that you pay for using the services that a brokerage offers in order to perform trading and manage investments. The brokerage fee structure and regulations vary from broker to broker, and there are two primary fee types which are:
Trading Fees: This type of fee is only charged when you perform a trade. It can be a conversion fee, margin rate, financing rate, spread, or commission.
Non-Trading Fees: This type of fee isn't directly related to your trading activity, and it can include inactivity fee, withdrawal fee, deposit fee, etcetera.
eToro Commissions and Fees
Registration on the eToro platform is free. The broker does not charge a fee for opening and closing long positions on stocks quoted at the US stock exchanges. The stocks of other markets are available as derivatives, with eToro charging a trading fee on them in the form of the spread. Also, the fees are applied to short positions and leveraged orders. The company accepts and allows withdrawals of only US dollars. If a client deposits or withdraws another currency, it is converted into USD at a fee of 0-50 pips. Members of eToro club get a 50-100% fee reduction on conversion. If a client shows no activity for a period of 12 month, the broker charges the inactivity fee of $10. There is no deposit fee. eToro charges $5 on each withdrawal.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Standard |
$5 |
Yes |
|
Pro |
from $1.1 |
$5 eToro’s fee + the fees of payment systems |
Revolut Commissions and Fees
During our analysis of trading conditions, it was found that Revolut limits the number of trades without commissions. Depending on the account type, 1-5 transactions per month are free. There is a monthly subscription fee of £2.99-£12.99 on different accounts, which can be reduced by 20% if you pay in advance for a year. The broker charges a fee of 1 USD for additional orders. Since stocks listed on American exchanges are offered for investment, the fees are calculated in USD and then the funds are converted to the account currency at the current exchange rate. For transactions in cryptocurrency, the commission is 1.5-2%, and for transactions in precious metals, it’s 0.5-1.5% of the transaction volume. The amount of interest depends on the selected trading account. No additional hidden commissions were revealed.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Standard |
From £2.99 |
No |
|
Plus |
From £2.99 |
No |
|
Premium |
From £2.99 |
No |
|
Metals |
From £2.99 |
No |
Robinhood Commissions and Fees
Analysts of the Traders Union have reviewed the trading conditions of Robinhood Markets for implicit and explicit commissions and fees. Hidden commissions were not revealed. The broker does not charge a trading fee for the replenishment of the deposit or the withdrawal of funds. No commission is charged for order execution. Please note: there is no commission for assets from the US market only. A trading fee is charged to traders for trading European stocks.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Robinhood Instant |
From $1.5 |
No |
|
Robinhood Gold |
From $1.5 |
No |
|
Robinhood Cash |
From $1.5 |
No |
SogoTrade Commissions and Fees
The Traders Union analysts have examined the trading conditions of SogoTrade for explicit and implicit fees. Fees for shares and ETFs: for limit orders and qualified limit orders for an odd lot is $0; and for market orders and unqualified orders for odd lots, it is $2.88. Options commission: $0, contract fee - 50 cents. Brokerage commission: for stocks, ETFs and mutual funds - $25; and finally, for options - $25 + $0.5 for each contract. SogoTrade does not charge a fee for opening an account and making a deposit but withholds a fee for withdrawing funds by bank transfer and cheque by mail.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Cash Account |
From $25 |
Yes |
|
Margin Account |
From $25 |
Yes |
Phillip Capital Commissions and Fees
The Traders Union’s specialists studied the PhillipCapital trading conditions to determine the commissions charged by the broker. The company charges a $40-100 monthly subscription fee for using the trading platforms. There is no brokerage commission. The exchange fees are paid by PhillipCapital from the funds received from the monthly rent for using the trading platform. Deposits are free, but wire transfer withdrawals cost $25, not including bank fees. There is a $4 fee for withdrawals by bank check and an NFA fee of $0.02 per lot each way applies to all US exchanges. There is also a CME fee for NYSE/LIFFE and CFE transactions of $0.03 per lot in each direction.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Individual |
from $0.03 |
Yes |
|
Joint |
from $0.03 |
Yes |
|
Corporate |
from $0.03 |
Yes |
|
LCC |
from $0.03 |
Yes |
|
LLP |
from $0.03 |
Yes |
|
Trust |
from $0.03 |
Yes |
|
IRA |
from $0.03 |
Yes |
|
Pension Plan |
from $0.03 |
Yes |
|
Discretionary |
from $0.03 |
Yes |
Summary
Many brokers are available for traders from Australia, but not all of them offer good conditions. In this review, TU experts chose the Best stock brokers for fractional shares in Australia 2024. These are the most trusted companies that offer the best conditions for traders. You will also be able to review the general assessment of each broker.
Overall score of the best Stock Brokers For Fractional Shares in Australia
| eToro | Revolut | Robinhood | SogoTrade | Phillip Capital | |
|---|---|---|---|---|---|
|
Overall score |
7.75 |
7.69 |
6.91 |
6.43 |
6.25 |
|
Execution of orders |
9.1 |
9.2 |
7.9 |
7.34 |
7.19 |
|
Investment instruments |
9.7 |
9.8 |
8.5 |
7.76 |
7.61 |
|
Withdrawal speed |
9.5 |
9.6 |
8.3 |
7.4 |
7.25 |
|
Customer Support work |
9.3 |
9.4 |
8.1 |
7.7 |
7.55 |
|
Variety of instruments |
9 |
9.1 |
7.8 |
7.18 |
7.03 |
|
Trading platform |
9.8 |
9.9 |
8.6 |
7.92 |
7.77 |
|
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FAQ
What are the risks of trading in the financial markets?
Any trading in the financial markets carries risks of losing your money due to asset volatility. Therefore, it is important to develop the rules of risk management in your strategy and strictly follow them.
Can you earn passive income in the financial markets?
Yes, the best brokers in Australia offer passive income options. These could include copy trading, PAMM accounts, managed portfolios, etc.
What is a demo account and why is it important?
On a demo account, you trade by using virtual funds. It is important to choose a broker offering a demo account both for beginners, who are only learning, and for experienced traders, who can use this account type to test new strategies or EAs risk-free.
What learning instruments can a broker offer?
Brokers offer various educational options. These include full-fledged educational courses, or video tutorials, articles, and books. Companies also often hold seminars and webinars.
Best Stock Brokers For Fractional Shares by Countries
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.