Best ETF brokers in 2025

What is an ETF or Exchange Traded Fund?

An ETF (Exchange Traded Fund) is a financial product that allows you to invest in a basket of assets in a single transaction. It is an index fund listed on the stock exchange, the objective of which is to replicate the performance of a benchmark index, such as the S&P/ASX 200, the S&P 500 or the MSCI World.

Unlike actively managed traditional funds, an ETF follows a passive management approach: it replicates the composition of the index it tracks, with lower fees compared to active funds. It is continuously tradable on the markets, just like a stock, allowing investors to buy or sell their shares at any time during the trading day.

ETFs are very popular due to their many advantages:

• Immediate diversification: By purchasing an ETF, the investor positions themselves on multiple assets in a single transaction.
• Reduced fees: ETF management fees are generally much lower than those of traditional investment funds.
• Accessibility: It is possible to invest in ETFs with a modest amount, and some brokers offer fractional purchases.
• Transparency: The composition of ETFs is generally accessible in real-time, allowing investors to know exactly what they are investing in.

Avantages des ETFs

ETFs offrent une diversification instantanée: une seule transaction permet d'investir dans un ensemble d'actifs reflétant la composition de l'indice suivi. Par exemple, un ETF répliquant l'indice S&P/ASX 200 permet d'accéder aux 200 plus grandes entreprises d'Australie.

What is an ETF broker?

An ETF broker is an online platform that allows investors to buy and sell Exchange Traded Funds (ETFs) on the stock market. These brokers provide access to a wide range of ETFs, covering local and international markets, and offer different ways to invest depending on your goals and strategy.

In Australia, there are two main types of brokers you can use to invest in ETFs:

• Traditional brokers that allow direct ownership of ETFs through a CHESS-sponsored trading account.
• CFD brokers, which let you speculate on ETF price movements without owning the actual asset.

Here’s a comparison of these two types of ETF brokers:

The right choice depends on your investor profile:

• If you're a long-term investor looking to build wealth gradually, a broker offering direct ETF access via a CHESS-sponsored account is typically the safest and most cost-effective route. You own the assets directly and may benefit from dividend income and franking credits.
• If you're a short-term trader seeking to speculate on price movements using leverage, a CFD broker could be an option — but this approach involves significantly more risk and is better suited to experienced investors.

How to choose an ETF broker?

Choosing an ETF broker is an essential step for investing effectively in the stock market. There are brokers that allow you to directly buy ETFs and brokers offering CFDs on ETFs. Each type of platform caters to different investment strategies. Here are the criteria to consider to make the right choice.

1. Accessibility to ETFs

Not all brokers offer the same access to ETFs. It is important to verify:

• ETF Availability: Some brokers offer a wide selection of physical ETFs, while others only offer CFD ETFs.
• Access to International ETFs: Some brokers allow you to invest in European and American ETFs, while others restrict their offering to certain geographical areas.
• Eligibility for tax-advantaged accounts: If you want to optimise your taxation, choose a broker offering ETFs compatible with Australian tax-advantaged accounts.

2. Frais de courtage et de gestion

Les frais ont un impact direct sur la rentabilité de votre investissement. Voici les principaux coûts à comparer :

• Order fees: commission applied to each purchase or sale of ETFs. Some stock brokers offer free orders, while CFD brokers often apply a spread (difference between the purchase and sale price).
• Management fees: levied annually by the ETF issuer (generally between 0.05% and 0.50%).
• Inactivity fees: some brokers charge fees if no order is placed over a given period, especially CFD trading platforms.
• Conversion fees: for ETFs listed in foreign currencies, there may be exchange fees on transactions.

3. Platform Ergonomics and Tools

Whether you're a beginner or experienced investor, an intuitive and efficient platform is essential. Check:

• The quality of search tools and filters to easily find ETFs.
• The existence of a mobile application to manage your investments in real-time.
• The availability of advanced charts and technical indicators for active investors, especially those trading CFDs.

4. Account Type and Taxation

The type of account offered by your broker has a direct impact on how your ETF investment returns are taxed in Australia.

• Standard brokerage account (CHESS-sponsored): This is the most common setup for direct ETF investing in Australia. When you sell an ETF for a profit, the gain is subject to Capital Gains Tax (CGT). If the ETF is held for more than 12 months, you may be eligible for a 50% CGT discount. Dividends received from Australian ETFs are usually fully franked, meaning you can claim franking credits to reduce your income tax.
• CFD trading account: If you trade ETFs via Contracts for Difference (CFDs), profits are typically considered ordinary income, not capital gains. This means they are taxed at your marginal income tax rate, and CGT concessions do not apply. Losses may be deductible under certain conditions.

5. L'effet de levier et la gestion du risque

Si vous souhaitez utiliser un effet de levier, seuls les brokers proposant des CFD sur ETF vous permettront d'amplifier vos positions (généralement avec un levier x2 à x5). Toutefois, le risque de perte est accru, car l'effet de levier peut aussi multiplier les pertes. Assurez-vous que votre courtier propose :

• Negative balance protection to avoid losing more than your initial capital.
• Stop-loss and take-profit orders to manage your positions effectively.

6. The Quality of Customer Service

Good customer service is essential, especially for active investors. Before opening an account, inquire about:

• The available contact methods (phone, online chat, email).
• The availability of support (days and hours of operation).
• The quality of educational resources offered (guides, webinars, tutorials).

7. Security and Regulation

Choosing a trustworthy, regulated broker is essential for safe and compliant investing. In Australia, this means making sure the broker is licensed by:

• ASIC (Australian Securities and Investments Commission) – the national regulator overseeing financial services, including brokers.
• Look for brokers listed on ASIC’s Financial Services Register, and make sure they hold an AFSL (Australian Financial Services Licence).
• Some international platforms may also be regulated by authorities like:
• FCA (UK),
• BaFin (Germany),
• CySEC (Cyprus),
• SEC/FINRA (USA) — for global platforms serving Australian clients.

Make sure the broker offers segregated client funds, transparent fee disclosures, and clear documentation on tax reporting and record keeping. Reputable Australian brokers also participate in the Australian Financial Complaints Authority (AFCA) scheme for investor protection.

Which ETF Broker is Best for Beginners in Australia?

If you're new to ETF investing, it's important to choose a broker that offers a simple interface, low fees, and educational resources to help you learn as you go. The best platforms for beginners make it easy to get started without being overwhelmed by advanced tools or complex pricing structures.

Key features to look for in a beginner-friendly ETF broker:

• User-friendly platform that’s easy to navigate
• Low or zero brokerage fees on ETF trades
• Wide selection of ETFs, including low-cost index funds
• CHESS-sponsored accounts for direct ownership of your investments
• Local customer support, ideally with extended hours
• Educational tools such as tutorials, investment guides, and practice accounts

Tip

For most beginners in Australia, starting with a 

CHESS-sponsored brokerage account

 (such as with SelfWealth, Pearler, or CommSec) is a smart and secure way to own ETFs directly and start building long-term wealth.

What are the different types of ETFs available in Australia?

In Australia, investors have access to a wide range of ETFs that allow them to invest in different assets and strategies. Here is a summary table of the main types of ETFs, with their description and some popular examples among Australian traders.

How to Invest in ETFs Online?

Investing in ETFs online is a simple and accessible method to diversify your stock portfolio. Here are the essential steps to start investing effectively.

1. Choose a Suitable Broker

The first crucial choice is that of the broker that will allow you to buy ETFs. To do this, you must compare several criteria:

• Brokerage Fees: Prioritise platforms with low fees.
• ETF Offering: Ensure the broker offers a wide selection of ETFs (stocks, bonds, sector-specific, thematic, etc.).
• Account Type: Verify if you want to invest via a standard brokerage account (CTO) for unlimited access to global ETFs.
• Security and Regulation: Opt for a broker regulated by ASIC (Australia) or other recognised authorities.

2. Ouvrir un compte d’investissement

Once you've chosen a broker, you'll need to open an account by providing some documents:

• Proof of identity (identity card or passport).
• Proof of address (bill, tax notice).
• Bank account details for deposits and withdrawals.

Account verification can take a few hours to a few days, depending on the broker.

3. Deposit funds into your account

Before you can buy ETFs, you need to fund your account by making a deposit. Depending on the broker, you can deposit funds via:

💳 Bank transfer (most common method).
💰 Credit card (faster but sometimes with fees).
📱 Electronic wallets (PayPal, Skrill, etc., depending on the platforms).

4. Selecting ETFs to Buy

It is important to choose ETFs that are appropriate for your strategy. You can invest in:

• Index ETFs (MSCI World, S&P 500, ASX 200) for a passive and diversified approach.
• Sector ETFs (technology, healthcare, renewable energy) to target a trend.
• Bond ETFs for a more defensive allocation.
• Dividend ETFs to generate passive income.

5. Placing a Buy Order

Once the ETF is chosen, you must place a buy order. There are several types of orders:

• Market Order: Immediate purchase at the current price.
• Limit Order: Purchase only if the ETF reaches a defined price.
• Stop Order: Purchase triggered when the price exceeds a certain threshold.

6. Monitor and Adjust Your Portfolio

Investing in ETFs requires regular monitoring to ensure your portfolio remains aligned with your goals. To do this:

• Analyse performance: Track the performance of your ETFs via your broker or tools like Google Finance.
• Rebalance your portfolio: Adjust your asset allocation if a sector becomes too dominant.
• Invest regularly: Adopt a Dollar Cost Averaging (DCA) strategy by buying ETFs at regular intervals to smooth out risk.

What fees are involved with an ETF broker or brokerage?

Investing in ETFs involves fees that can impact the profitability of your portfolio. These costs vary depending on the type of account, the market targeted, and the investment method. Here are the main fees to anticipate with concrete examples.

1. Brokerage fees

Brokerage fees are applied to each order to buy or sell ETFs. They can be fixed (example: $1 AUD per order) or proportional (example: 0.1% of the amount invested). Some brokers offer commission-free ETFs under certain conditions, such as a scheduled purchase or an order limited per month.

Example of ETF brokerage fees

Buying an ETF for $1,650 AUD with fees of 0.5% → $8.25 AUD in fees.

Buying the same ETF with a broker offering one free order per month → $0 AUD in fees.

2. ETF Management Fees

These fees are directly levied by the ETF issuer and slightly impact the fund's performance. They are expressed as an annual percentage of assets under management.

Exemple de frais de gestion ETF

• Un ETF mondial avec 0,40 % de frais de gestion entraîne un coût annuel de 4 $AU pour 1 000 $AU investis.
• Un ETF S&P 500 à 0,07 % ne coûte que 0,70 $AU pour 1 000 $AU investis sur une année.

3. Currency Conversion Fees

If the ETF is listed in US dollars (USD) or British pounds (GBP) and the account is in Australian dollars, currency exchange fees apply to purchases and sales. These fees range from 0.1% to 1% depending on the platform.

Example of Currency Conversion Fees

Buying a Nasdaq-100 ETF in dollars for $3,000 AUD, with a currency exchange fee of 0.5% → $15 AUD fee.

4. Inactivity Fees

Certain brokers charge fees if no order is placed for several months. These fees are generally charged after 6 to 12 months of inactivity and may be fixed or proportional to the account balance.

Example of inactivity fee

• An account that is inactive for 1 year with a fee of $16 AUD per month results in a cost of $192 AUD over the year.

5. Withdrawal fees

Some platforms charge fees to withdraw funds to a bank account. These fees may be fixed (example: $8 AUD per withdrawal) or proportional (example: 1% of the amount withdrawn).

Example of withdrawal fees

A withdrawal of $500 AUD with a fixed fee of $5 AUD results in a cost of 1% of the amount withdrawn.

6. Spreads and overnight fees (for ETF CFDs)

If you trade ETF CFDs, you need to consider:

• The spread: the difference between the buy and sell price, which can be fixed or variable.
• Overnight fees: applied when you hold a leveraged position from one day to the next.

Example of ETF CFD Fees

• Buying an S&P 500 ETF CFD with a spread of 0.2% on a $1,000 AUD position → $2 AUD in fees.
• Holding the CFD for 5 days, with overnight fees of 0.01% per day → $0.50 AUD in cumulative fees.

What are the ETF investment strategies?

ETFs offer numerous investment strategies tailored to different investor profiles. Depending on your goals (growth, passive income, protection against volatility, etc.), some approaches will be more suitable than others.

Here is a summary table of the main ETF investment strategies:

What is the taxation on ETF income in Australia?

In Australia, income generated from ETFs — including capital gains, dividends, and trading profits — is subject to taxation under standard Australian Taxation Office (ATO) rules. The tax treatment depends on how long you hold the ETF, the type of account, and whether you're investing directly or trading derivatives.

1. Tax on ETFs held in a standard brokerage account

Most Australian investors hold ETFs through a CHESS-sponsored brokerage account. These investments generate two main types of income: capital gains and dividends.

Example

• You sell an ETF for a $2,000 capital gain after 14 months → you only pay tax on $1,000 thanks to the CGT discount.
• You receive $500 in dividends with $150 in franking credits → you may get a tax refund or offset depending on your income.

You must report both capital gains and dividend income in your annual tax return.

2. Tax on foreign ETFs and withholding tax

If you invest in international ETFs (e.g. US-listed ETFs), you may be subject to foreign withholding tax, especially on dividends.

• United States: The default withholding tax on dividends is 30%, but this can be reduced to 15% by submitting a W-8BEN form through your broker.
• Ireland or Luxembourg-domiciled ETFs: Often used to avoid US dividend withholding entirely or reduce it indirectly.

Example

You receive $1,000 in dividends from a US ETF:
→ Without W-8BEN: $300 withheld
→ With W-8BEN: only $150 withheld, and the rest is paid to you

You still need to declare the full dividend income to the ATO in your tax return, and you may be eligible for a foreign tax credit for the amount withheld.

3. Tax on leveraged ETFs and ETF CFDs

Trading leveraged ETFs or ETF CFDs falls into a different tax category, often closer to active income than long-term investment.

Example

You earn $3,000 trading ETF CFDs held for a few days → this is treated as taxable income and taxed just like salary, not as capital gain.

Losses from CFD trading may be deductible, but rules around deductions can be strict — keep accurate records and consult a tax adviser.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.