Exchange traded funds (ETFs) are a collection of different securities that range from industries, sectors, commodities, and more. If you’re an investor who likes a diversified portfolio or is looking to trade in a specific market sector, then investing in ETFs is for you.

In this guide, we’ll try to find the best ETF Trading Platform Australia depending on your specific trading needs.

Best ETF Trading Platforms in Australia – List

There’s a handful of ETF trading platforms in Australia that may vary in value based on what you’re looking for when trading ETFs. Luckily, we’ve listed the seven most notable ones below.

1. eToro: Overall Best ETF Trading Platform in Australia
2. Capital.com: Best Beginner ETF Trading Platform in Australia
3. Libertex: Reputable ETF Trading Platform in Australia with Tight Spreads
4. Pepperstone: ETF Trading Platform with Low Fees based in Australia
5. AvaTrade: Educational ETF Trading Platform in Australia
6. IC Markets: Trusted MT5 ETF Trading Platform based in Australia
7. Blueberry Markets: High Leverage ETF Trading Platform based in Australia 

Best ETF Trading Platforms in Australia Reviewed

Before doing research on your preferred ETF, choosing the best ETF trading platform for you is a very crucial first step. For example, if you’re an amateur trader looking for a more beginner-friendly platform to trade in, you might have tremendous difficulty navigating more advanced platforms.

After reviewing several trading platforms, we have reviewed below our top picks.

1. eToro – Overall Best ETF Trading Platform in Australia

Our overall best ETF trading platform in Australia is eToro, an all-in-one broker that offers a huge range of financial instruments. Invest in stocks, crypto, ETFs, commodities, indices, and more in their easy-to-use proprietary web platform. 

On top of that, all trading on eToro has zero commissions, meaning there are no inherent fees when executing trades. We consider the broker as the best overall as it offers the best value for the majority of people looking to invest in securities. Taking into account that many are beginners or amateur traders, eToro makes sure that the experience is excellent with a demo account that helps traders get used to trading, get used to their intuitive platform, and try out the strategies that work for them.

With over 20 million active users, eToro is also a highly social trading platform where users can share their views, trades, and research on particular equities. More than this, users of the platform can even copy the portfolios of professional investors in eToro’s CopyTrader feature. For example, a newbie trader who wants to get into investing in ETFs can simply copy the portfolio of a seasoned trader who knows which ETFs to get into and profit.

There is also a wide selection of ETFs to choose from in eToro, equating to over 260 at the time of writing. To sign up in the platform requires a minimum deposit of just $50 and funding accounts is really easy with debit card, credit card, and multiple e-wallet payments available.

eToro fees:

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

2. Capital.com – Best Beginner ETF Trading Platform in Australia

The next best platform for ETF trading in Australia is Captial.com, a great beginner platform that also has zero commissions and a selection of financial instruments to trade. These include CFD shares, crypto, ETFs, and indices among others.

What makes Capitall.com great for beginners are its educational resources. Their site is packed with helpful and engaging articles that are easy to understand especially for newbie traders who are starting to get into the flow of things. 

What’s daunting for most who start out in their trading journey is not just the flow of the market but the ins and outs of the platform they are using. For example, when they explain margin trading, an important aspect of investing, they include precise examples and animated illustrations in their educational articles.

The minimum deposit to start trading with Capital.com is just $20 and there is no deposit fee. In terms of regulations and security, the company is licensed by the reputable ASIC and FCA among other organizations.

Capital.com fees:

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

3. Libertex – Reputable ETF Trading Platform in Australia with Tight Spreads

Many traders look for the best deals when it comes to the bid-ask discrepancy in trading and Libertex offers extremely low spreads for this market. The only caveat to their competitive spreads is that they actually charge a commission per trade execution. Whether you think their commissions are worth the crucially low spreads is up to your trading strategy and preferences

Libertex offers trading of stocks, ETFs, indices, crypto, forex, commodities, and more. Aside from CFD trading like many brokers, they are also suitable for long-term investors as users can buy and own the actual stocks they purchase at zero commissions too.

The broker requires a minimum deposit of €10 which is possible with Libertex through a plethora of payment options such as PayPal, Skrill, wire transfer, and more.

Libertex fees:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

4. Pepperstone – ETF Trading Platform with Low Fees based in Australia

The fourth broker on our list of best ETF trading platforms in Australia is Pepperstone, a CFD broker which is actually based in the country. The platform offers 0 commissions for their standard accounts with a 1 pip markup on raw spreads. 

Pepperstone offers over 1200 financial instruments for trading, including but not limited to forex, commodities, crypto, and of course ETFs. Their trade execution speeds are noteworthy and their fees are competitively low. They also have multiple platforms integrated with them, so traders can choose among MetaTrader4, MetaTrader 5, and cTrader when it comes to their trading experience.

Finally, the broker has a great spanning customer support that operates 24/7. There is no minimum deposit for Pepperstone, further adding to their low cost for account creation.

Pepperstone fees:

75.3% of retail accounts lose money when trading CFDs with this provider. Consider whether you can afford to take the high risk of losing your money. 

5. AvaTrade – Educational ETF Trading Platform in Australia

Another one of the best ETF trading platforms atop our list is AvaTrade. The 15-year old broker offers multiple trading tools and indicators, meaning it might be one of the best options for more experienced traders. Avatrade has a great selection of financial instruments such as ETFs, stocks, indices, and even bonds for investing.

Research and analysis of market trends, sectors, and other news are very much highlighted in the AvaTrade site and platform. Not only that, they also have tons of educational resources ranging from short video courses to well-constructed FAQs. Their articles are very much for beginners, meaning they lookout for new traders as their clients too.

AvaTrade is globally regulated and in Australia, the broker is supervised and authorized by ASIC and AFCA. The minimum deposit to start trading with AvaTrade is $100, which is sizable but a good amount to start with if you’re looking to earn somewhat significant amounts.

AvaTrade fees:

Your capital is at risk.

6. IC Markets – Trusted MT5 ETF Trading Platform based in Australia 

Another Australia-based platform, IC Markets is one of our best ETF trading platforms with forex and CFD broker trading. The broker specializes in forex CFDs, stock indices, commodities, and other equity markets globally. 

IC Markets has well-integrated the MT4 and MT5 platforms in its system as the broker is known for its automated trading strategies feature. Traders who need specific trading tools will be pleased to hear the wide range of technical indicators available on the platform. Seasoned traders with experience in algorithmic trading and using robots for trade executions should consider IC Markets as a broker.

The minimum deposit required for IC Markets is $200 but their security and regulations are very reputable. The broker is regulated and authorized by ASIC and is monitored by one of the strictest financial regulatory organizations in the world. Rest assured your accounts and activity is secure in this aspect.

IC Markets fees:

Your capital is at risk.

7. Blueberry Markets – High Leverage ETF Trading Platform based in Australia 

The final top lister among the ETF trading platforms Australia is Blueberry Markets, also an online broker based in Australia. It’s a globally regulated online forex broker that not only provides one of the best trading instruments to thousands of experienced traders but also offers great educational research too.

In terms of leverage, Blueberry Markets has one of the highest available to their wholesale clients – they offer 500:1 for investors outside Australia and 200:1 for those in the country. For retail traders, the highest the broker can offer is 30:1 for major forex pairs and 5:1 for shares and other securities such as ETFs which is fairly standard in the industry.

To start trading with Blueberry Markets, make sure to have $100 available for your minimum deposit. Funding your account should be easy with multiple payment options available for the broker. On top of this, their excellent 24/7 customer service means that any issues regarding your account should be addressed at your convenience. 

Blueberry Markets fees:

Your capital is at risk.

Best ETF Trading Platforms in Australia – Fees & Leverage Comparison

ETF Trading Explained

Now that we’ve gone through the different ETF trading platforms, we can now proceed to more deeply explain ETFs, what they are fundamentally, and other important details regarding security.

What is an ETF?

Much like stocks, ETFs can be traded when markets are open and can be bought and sold intraday. The key distinction is that ETFs are a type of security with a predetermined set of assets or equities that essentially track certain sectors, industries, commodities, or other assets. One of the most famous ETFs, for example, the SPDR S&P 500 ETF (SPY) tracks the S&P 500 Index which is a weighted collection of the top 500 leading public companies. 

Regulation

Shares of ETFs are regulated by an authorized participant (AP) which is an organization that provides the majority of the liquidity in the ETF market. APs are traditionally institutional banks such as JPMorgan Chase and Morgan Stanley and usually keep the transparency of ETFs by keeping its value as close as possible to their net asset values.

Pros and Cons

When it comes to the advantages of ETFs, several arguments come up. For one, ETFs allow traders to diversify their portfolios as purchasing an ETF means that you are investing on the price action for a collection of assets. Unlike trading single assets which can move up or down, because ETFs are an amalgamation of many equities, the drop in price of a few assets in an ETF won’t matter if the majority of the weight has gotten higher. 

This is just one of the advantages of ETFs, but there are also some disadvantages as well. To explain one, there are actually hidden fees involved when purchasing ETFs. It doesn’t matter which ETF trading platform you use, the management fees for ETFs are already part of the price. This means there is some discrepancy between the actual weight of all the assets in an ETF and its actual price.

ETF Assets

ETFs are very versatile and can encompass a variety of different assets depending on the demand for it. For example, TQQQ is the leveraged ETF of the Nasdaq 100 Index but tripled. This means that whatever returns the Nasdaq 100 Index has in a day is tripled in those who bought TQQQ.

Leveraged ETFs are just one example of the many different ETF assets that are available in the market. Of course, the different types of ETFs will benefit different traders and different strategies.

Platform & Usability

When it comes to selecting a platform for ETF trading, again it’s important to understand your preferences and level. For example, a trader simply seeks to invest long-term in the SPY and keeps adding month per month wouldn’t need an extremely complex platform with multiple charts and trading analysis. A simpler platform such as eToro would better suit this particular individual usability-wise.

75.3% of retail accounts lose money when trading CFDs with this provider. Consider whether you can afford to take the high risk of losing your money. 

Trading Tools & Features

The complexity and availability of different trading tools definitely become more and more important the more technically adept traders are. In terms of ETFs, it is possible to trade in the short term, and having the trading tools and features that allow for more optimal price prediction will definitely benefit those traders.

Education, Research, & Analysis

Another important aspect when it comes to ETF trading is the research and analysis in terms of the market conditions, price actions, and momentum. The education, research, and analyses available definitely depend on the ETF trading platform. Brokers who have more technical integrations usually have more in-depth and advanced analysis as their traders need to know what moves to make in intraday trading.

Mobile App and Device Compatibility

Sometimes you’re not always at home with your computer or laptop when markets open or important updates arise. This is why the majority of ETF trading platforms have adopted mobile apps and device compatibility with their platforms. It’s a huge plus especially in terms of getting updates because market conditions can change quite quickly. For ETFs, alerts and being able to check updates on the go is crucial.

Payments

As mentioned earlier, the fees that are charged for managing ETFs are already accounted for in the price. In terms of the payment options per ETF trading platform, however, the available payment methods are important factors in your trading experience. No matter your ETF trading strategy or how you plan on trading the securities, you’ll need to make sure that you can properly fund your account before you can invest.

ETF Trading Strategy

When it comes to curating an ETF strategy, you have to first understand some different types of ETFs and their uses. For example, short-term traders who want to buy and sell ETFs intraday might want to invest in some leveraged ETFs.
As mentioned earlier, these types of ETFs are multiplied to a certain degree.

Furthermore, there are also ways in which investors can bet against a certain industry or sector using ETFs. They’ll need to look for inverse ETFs which could be likened to trying to short a collection of securities. For example, the SQQQ is a leveraged inverse ETF of the Nasdaq 100 Index. This means that a 1% drop in the index will yield a return of 3% for SQQQ.

Though you can mix and match and even figure out your own strategy when it comes to ETF trading, these are just a few of what you can use in order to increase the chances of success. All trading, even with ETFs, comes with risk and it is generally known that using leveraged positions or even short positions possesses even more risk. Note that there are certain strategies too that are less risky but involve long-term investing in ETFs that are known to show consistent average growth annually.

How to Get Started With an ETF Trading Platform in Australia

Nowadays, opening an account with an ETF trading platform is very simple and can be done all online. In this section, we will explain how to create an account with eToro, our recommended ETF trading platform Australia.

Step 1: Open a Trading Account and Verify Your Identity

75.3% of retail accounts lose money when trading CFDs with this provider. Consider whether you can afford to take the high risk of losing your money. 

First, head over to the eToro site and click the Sign-Up button and fill in your email and password or you can opt to sign up with an existing Google or Facebook account. 

Given that the broker is well regulated, you’ll also need to verify your account after the initial creation. Simply upload a clear image of a valid ID such as your passport or driver’s license. From there, you’ll also need to show proof of address through a utility bill or a statement of account.

Step 2: Deposit Funds

Once your account has been verified, the next step would be making your first deposit. Note that eToro operates in USD, so if you are depositing from another currency such as AUD, then a conversion will have to occur. The minimum deposit for Australia-based accounts is $50. 

Step 3: Practice ETF Trading on a Demo Account

After your deposited funds have gone through, you can already start live trading. However, we recommend that you practice first using the virtual account of eToro so that you can better understand price movements as well as how the trading platform works. 

At the bottom of the left-hand sidebar, you’ll see a link that says ‘Virtual Account’. You can click this to open your demo account with virtual currency. From here, you can explore and start trading ETFs, crypto, shares, and more without spending actual capital.

Step 4: Start Trading with ETFs

Once your account has been funded, you can start live trading ETFs. Just like in the demo account, search for your desired ETF ticker or name and press the ‘Trade’ button. The modals and interface are exactly the same as with the demo account, but this time you’ll be trading with what you actually deposited.

Now, simply set the value that you want to trade then put any stop loss or take profit values and press the Open Trade button. Congratulations, you’ve invested in an ETF with eToro!

75.3% of retail accounts lose money when trading CFDs with this provider. Consider whether you can afford to take the high risk of losing your money. 

Conclusion

In conclusion, ETFs are a great source of diversification for many traders and a tremendous resource for long-term investors as well. For the most common strategies and decisions made in the market, there appears to be an ETF for it. Overall, our general recommendation for the best ETF trading platform is eToro with its zero commissions, copy trading, and demo account features.

Ready to trade using the eToro platform? Click the button below and start trading ETFs, stocks, crypto, and more!

eToro – Best ETF Trading Platform in Australia

75.3% of retail accounts lose money when trading CFDs with this provider. Consider whether you can afford to take the high risk of losing your money. 

FAQs

Are ETF trading risky?

All trading and investing comes with risk, even trading ETF which are already a group of securities. Make sure to research any ETFs you wish to invest in to know the risks before trading.

Is ETF trading legal in Australia?

Yes. ETF trading is legal in Australia via online brokers such as the ones mentioned and reviewed above.

How do Australian ETF trading platforms make money?

Australian ETF trading platforms earn either through the spread whenever users purchase an ETF or through commission if the broker requires so.

What is the best ETF trading platform in Australia?

Our recommended and best ETF trading platform in Australia is eToro as it offers multiple ETFs to trade from as well as a great proprietary platform for trading.

Is ETF trading taxable in Australia?

Yes, ETF trading is taxable in Australia although the most important part is to keep good records to ensure that you comply with your tax obligations. The Australian Taxation Office (ATO) is there to support beginner ETF investors.