CommSec vs Stake vs CMC Invest: Comparing Australian Share Trading Platforms for Beginners
Choosing an Australian share trading platform involves more than comparing the lowest advertised brokerage fee. How shares are held, the markets available and currency conversion charges can also affect the overall cost.
This beginner-friendly guide explains the published fee structures of CommSec, Stake and CMC Invest, and the questions to ask before opening an account or placing a trade. Fees and eligibility conditions can change, so always confirm the current details on each provider's website.
1. What Does an Online Broker Do?
An online broker lets eligible customers place orders for supported investments through a website or app. Brokerage is the fee charged for executing a transaction, but it is not always the only cost.
For international shares, foreign exchange charges may apply when money is converted between currencies. Investors should also understand how their shares are held. In Australia, eligible CHESS-sponsored holdings are associated with a Holder Identification Number (HIN); overseas holdings may use different custody arrangements.
2. CommSec: Banking and Share Trading
CommSec is part of the Commonwealth Bank group. Its Australian share trading service can be linked to a Commonwealth Direct Investment Account (CDIA) for settlement.
Under the published standard online fee schedule used for this comparison, eligible Australian share trades of up to A$1,000 cost A$5 in brokerage when settled through CDIA. Other settlement methods and larger transactions can have different rates.
The connection with CommBank may be convenient for customers who already use its banking services, but convenience and transaction cost are separate considerations. Review the full fee schedule before trading.
3. Stake: Flat-Fee Share Trading
Stake offers access to Australian and US shares. Its published standard ASX brokerage is A$3 per trade for orders up to A$30,000, with a different rate applying above that amount.
Stake describes eligible Australian holdings as CHESS-sponsored. For US investing, check the separate US brokerage schedule and the foreign exchange fee before transferring or converting funds.
A simple headline fee can make costs easier to understand, but investors should still compare the total cost of buying, selling and moving money.
4. CMC Invest: Conditional Free Brokerage
CMC Invest offers a conditional A$0 brokerage rate for an eligible first buy order under A$1,000 in each ASX-listed security, per day. The offer is subject to the provider's conditions.
It does not mean every transaction is free. Other buy orders and sell orders can attract brokerage, and international investing may involve foreign exchange costs.
When comparing CMC with another broker, consider how often you expect to buy and whether you may later sell, rather than comparing only the cost of an initial purchase.
5. Comparing Fees and Account Features
The table below illustrates the published standard ASX fee structures described above. It is a comparison of conditions, not a recommendation or a guarantee of the fee that will apply to your account.
| Platform | Illustrative ASX buy brokerage | Condition to check |
|---|---|---|
| CommSec | A$5 on an eligible trade up to A$1,000 | Online trade settled through CDIA |
| Stake | A$3 on a trade up to A$30,000 | Different rate for larger orders |
| CMC Invest | A$0 on an eligible first buy under A$1,000 | Per security, per day; other buys and sells may cost extra |
Infographic note: Check each broker's current pricing page for the latest fees, exclusions and international trading conditions.
- Compare the cost of selling as well as buying.
- Check transaction limits and settlement conditions behind advertised fees.
- Confirm whether the broker supports the market you want to research.
- Understand CHESS sponsorship and overseas custody arrangements.
- Read the current fee schedule before placing any order.
6. International Shares and Other Considerations
Access to the Australian Securities Exchange (ASX) does not automatically provide access to every overseas exchange. A broker offering US shares, for example, may not offer direct trading in Korean-listed companies.
International investments can involve foreign exchange spreads, different trading hours, overseas market rules and custody arrangements. Changes in exchange rates can also affect the Australian-dollar value of a holding.
Brokerage providers have eligibility requirements, including age and identity checks. Younger readers should learn about investing with a parent or guardian and check the provider's rules rather than assuming they can open a standard account.
- Low brokerage does not remove investment risk.
- Fee-free offers may have exclusions and daily limits.
- Currency conversion can affect international trading costs.
- Not all brokers support the same overseas markets.
- Fees, promotions and account conditions can change.
CommSec, Stake and CMC Invest illustrate how pricing and platform features can differ. Understanding these details helps beginners ask informed questions when researching share trading services.
Brokerage: The fee a broker charges to execute a buy or sell order.
ASX: Australian Securities Exchange, where many Australian shares are traded.
CHESS: Australia's electronic system for clearing, settlement and recording eligible shareholdings.
HIN: Holder Identification Number, used to identify holdings in a CHESS-sponsored account.
CDIA: Commonwealth Direct Investment Account, a CommBank account used for eligible CommSec trade settlement.
FX: Foreign exchange, or converting money from one currency to another.
Custody: An arrangement in which a provider or custodian holds securities on an investor's behalf.
