Coinbase holds a lot of appeal for Australian crypto traders because it’s big and well-known. That conveys security and reliability.

The exchange launched in the US in 2012 and first started offering services to Australians in 2016, before establishing a local entity – Coinbase Australia – in 2021.

It has grown into the largest US digital exchange, the custodian of choice globally for spot bitcoin ETFs, and one of the world’s top exchanges based on trading volumes.

It’s definitely a convenient and capable platform. But there are obstacles to getting value from Coinbase that you need to understand before you sign up.

Best Features Of Coinbase.

Downsides Of Coinbase.

Above: Standard desktop Coinbase. Simplicity is the name of the game here. Note the toggle to Advanced in the bottom left corner.

Coinbase At A Glance.

Is Coinbase Good For Beginners?

Many people will try Coinbase first and stick around because they’re happy with the usability of its apps (and they can’t be bothered switching).

But a fast sign-up process and user-friendly apps are a low bar for a crypto exchange.

Let’s say your goal is to park some money in Bitcoin and a few other major alts and slowly grow your holdings over time, and sell for profit occasionally.

Above: Standard Coinbase on mobile. Big buttons and big fonts make it feel friendly and uncomplicated.

You don’t care to analyse charts, or fuss with special order types. You just want to hit ‘buy’ (or sell).

Standard Coinbase makes buying and selling crypto simple for beginners. But it’s not as good a value as exchanges like Kraken or Australian-based exchange CoinSpot.

A basic market order comes with transaction fees and spreads charged by Coinbase – which can be hard to determine accurately beforehand.

Whereas there are no spreads on Coinbase Advanced.

Instead, there’s a fixed, and more competitive, trading fee based on your order type and trading volumes.

The good news? You can trade using Coinbase Advanced for free and without truly needing advanced knowledge.

Once you’ve toggled your app to ‘Advanced’ mode, it doesn’t take much to get a handle on how to place a limit order.

Above: Coinbase Advanced rewards market makers with ~50% discount on fees.

Even if you never look at a single chart in the Advanced interface, you can slash your trading fees to at least 0.6%.

The key is to keep your trading volume above $1,000 / month and place Limit orders.

What Makes Coinbase Great For Beginners?

Quite a few things:

What Makes Coinbase Less-Than-Ideal For Beginners?

One of the biggest complaints is that Coinbase’s support feels circuitous.

The internet is full of users complaining about being trapped in a loop of unhelpful responses and requests to re-explain.

When the chatbot couldn’t handle a complaint, it eventually (and somewhat reluctantly) redirected me to a person. While the human was competent and eager to help, I wouldn’t go so far as to say they were rockstars.

Just good enough. Certainly room for improvement.

But the biggest issue is the hefty spread you’ll pay on the standard Coinbase.

The official party line is that this fee is “volatility and volume sensitive”, and ranges between roughly 0.5% and 2%.

Well, it may seem insignificant when depositing small amounts. What’s a $1-4 haircut on a $200 deposit, anyway?

But it begins to look scary when larger numbers are at play.

And you must pay this sum again to get your money out. That’s up to $4,000 on every $100,000 you invest.

Let me put it this way – if an Australian share trading platform charged a $4,000 commission on the same sum, there’d be riots in the streets.

Above: Coinbase Advanced in all its glory. You get proper charting and a live Level 2 depth of market feed at your fingertips.

Is Coinbase Good For Experienced Traders?

Yes. An experienced, high-volume trader can thrive on Coinbase Advanced.

It strikes the perfect middle ground for a trader who wants a solid, secure platform with high-volume trading discounts, but is less concerned about having the most comprehensive, in-depth trading and analysis tools. 

The major draws of Coinbase Advanced for traders who know what they’re doing are:

The fixed maker-taker fee model in Coinbase Advanced clarifies what you’ll owe, which is essential for planning and evaluating your trading costs.

It also means you’ll pay less and less the more you trade. As low as 0.0% on some spot pairs.

But it doesn’t have everything an experienced trader might be looking for:

Not having as many coins isn’t necessarily a downside for beginners, as risky projects don’t often make sense as beginner investments.

But for experienced traders, Coinbase’s narrower number of assets could be limiting if your strategy hinges on volatile, smaller coins and tokens.

Above: Trading fees on Coinbase Advanced get almost negligible once you start moving more than a million dollars per month.

What you can achieve in the mobile app differs from what you can do via the desktop app. That’s not a huge problem, but it means you can’t do everything on-the-go.

Finally, Coinbase’s news and learning materials are too simplistic. They’re clearly aimed at engaging a beginner audience (such as its educational rewards program).

What Trading Fees, Spreads And Commissions Does Coinbase Charge?

Blockchain network fees will apply when you’re transferring coins. One bonus: USDC withdrawals are free across all supported networks (except Ethereum).

As I mentioned above, trading and transaction fees vary on a standard Coinbase account depending on what asset you’re trading:

You’ll be able to see an estimate before you hit ‘confirm’, but the final fee might be different. It’s not transparent, and it’s undeniably pricey.

Above: Coinbase Advanced on mobile. Just like the basic version, but with more features packed into each screen.

If you’re using Coinbase Advanced (the best option), the maker-taker fee model is much more straightforward and affordable.

At the highest tier (lowest trading volume) you’ll pay:

Other processing fees to be aware of include:

What Are The Staking Fees Like?

You’ll pay a 35% commission on rewards for staking ADA, ATOM, AVAX, DOT, ETH, MATIC, SOL, and XTZ.

The commission taken reduces in size if you’re a Coinbase One member, with the lowest commission for people on the highest tier of membership (25.25% on Premium).

If you unstake before the agreed period, you’ll be charged a 1% fee on the total unstaked amount of an asset. There’s no cost if you unstake after the full unbinding period.

Why Coinbase Freezes Some AUD Withdrawals.

You can add funds to your Coinbase account at no cost through a bank transfer, using PayID or a debit card.

With Australian banks’ aversion to crypto, there’s often a delay before your funds are cleared.

Don’t panic! You may need to ring your bank to get things moving. 

From June 2025 onwards you can also link your PayPal account as a payment method for in-app trading. 

If you sell coins for Australian dollars because you need the cash, it’s free to withdraw your AUD back into your linked bank account.

And if your bank supports Osko or PayID it’s likely your Coinbase withdrawal will be processed almost instantly.

Platforms like Kraken and Swyftx also offer fee-free withdrawals that are near-instant if Osko is available.

Where fast payments aren’t possible, withdrawals can take a few days to be processed.

Your withdrawal limit may differ, but information on Coinbase’s website suggests a daily limit of  $100,000 is standard, which is similar to other exchanges.

Is Coinbase A Legitimate Trading Platform?

As much as any crypto trading platform can be considered legitimate, Coinbase ticks the boxes.

It’s a massive US-based company, one of the world’s biggest digital exchanges in terms of trading volume, and it operates legally in Australia.

Coinbase has been registered with Australian regulator AUSTRAC since 2022, showing the company is doing what’s required to mitigate risks associated with money laundering, terrorism financing and other serious crime.

That includes the Know Your Customer (KYC) verification steps that so many disgruntled Coinbase users moan about.

Digital asset regulation is still in its early stages in Australia, but following guidance from ASIC (Australian Securities and Investments Commission) and proposed changes to the Corporations Act, platforms like Coinbase will need to obtain a financial services licence by mid-2026. 

Coinbase is seemingly well-positioned to meet this regulatory obligation and remain stable in future.

It has the resources and profitability to manage compliance costs and custody requirements.

The exchange has incurred fines and paid hefty out-of-court settlements for non-compliance with regulations in the US and the Netherlands.

It had also been facing enforcement action by the US Securities and Exchange Commission (SEC) for operating an unregistered exchange.

The SEC lawsuit was dropped in early 2025, largely on the back of the crypto-friendly agenda (and staff changes at the SEC) set by incoming president Donald Trump.

Coinbase described the turnaround as a clear vindication that it was “right on the facts and the law”.

Is Your Money Safe With Coinbase?

Coinbase has systems in place to keep your money safe, but the problem for any large platform (and its users) is that they’re also large targets for cyber criminals. 

Here are some facts to know about how safe it is to use Coinbase:

Coinbase boasts “industry-leading security.”

It applies security protocols that are roughly on par with measures across other leading exchanges, such as:

But it has far from a perfect track record. Unlike exchanges like Kraken or Swyftx, which have yet to experience hacks that affected users’ data or funds, Coinbase users have had their money and data stolen.

And just last year, company insiders were implicated in a data breach that was used to demand a US$20 million ransom from Coinbase, which its CEO Brian Armstrong refused to pay.

Less than 1% of users were impacted, but the hackers tricked a number of people into transferring funds. 

What Are The Most Popular Alternatives To Coinbase?

Aside from Coinbase, some of the most common exchanges that Aussies sign-up with include:

Frequently Asked Questions About Coinbase Australia.

Do You Own Your Crypto Held In A Hosted Coinbase Wallet?

The short answer is yes, any coins you deposit, buy or keep in your Coinbase account (aka a hosted wallet) belong to you.

But you’ve probably heard the warning “not your keys, not your crypto”.

Crypto natives are right when they argue that holding assets on an exchange limits the control you have over your assets, which could pose a threat if the Coinbase platform is compromised or the company folds.

That means if you buy 1 BTC, the exchange holds 1 BTC in its reserves so it’s always available to you.

Customer funds and assets are kept separate from the company’s assets, and Coinbase pledges to never repurpose, lend or take any unapproved action with your assets.

Can You Withdraw Your Crypto As AUD On Coinbase?

Yes, you can easily sell a crypto for its equivalent value in Australian dollars, which then becomes part of your cash balance in your Coinbase account.

To cash out some, or all, of your available balance you simply follow the steps under ‘Withdraw Cash’ from the account home page.

Keep in mind that funds recently deposited are usually put ‘on hold’ for a while, so they won’t be able to be immediately withdrawn again.

Is My Coinbase Account Monitored By The ATO For Tax?

Part and parcel of choosing an established and reputable exchange like Coinbase, which is registered with Australian regulator AUSTRAC (the Australian Transaction Reports and Analysis Centre), is that information about your crypto activity is shared with the Australian Tax Office (ATO).

The ATO can link data provided by exchanges like Coinbase with records like your bank data to understand your crypto tax obligations.

Is Coinbase Worth Using In Australia?

While Coinbase takes advantage of a new user’s naivety with its high fees on the default account, there are definite upsides to opting for an industry behemoth as your regular exchange.

Truly impressive liquidity is a win, and the fees are reasonable as long as you use Coinbase Advanced and you’re trading regularly.

But if you’re learning quickly, and steadily growing your trading frequency and volume, growing with Coinbase Advanced’s usability and features on your side is a smart move.

Jody

I love eToro. It has an excellent suite of copy trading tools, is not as complicated as Interactive Brokers, and gives you access to thousands of markets, including stocks, futures, crypto and ETFs.

But it has one huge problem.

The blasted 150bps currency spread on USD deposits.

Or, 75bps if I’m transferring internally from AUD to USD (but apparently this deal will expire on June 30th, 2026).

And same again when I exit my positions, exchanging USD back into AUD.

I’m effectively getting a ~1-5%-3% haircut for the privilege of using eToro. Jesus Christ.

Above: How did I pay only US$1.19 in fees to deposit US$500 into eToro? 1. I exchanged AUD into USD in Revolut at the interbank exchange rate. 2. I sent US$500 to eToro, triggering a minuscule US$1.19/AU1.80 Revolut fee. 3). The entire US$500 sum appeared in eToro the next day.

Until now, there was no way to avoid this spread.

(Related: 7 Best Day Trading Platforms In Australia).

I finally discovered two hacks for dodging this fee.

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.

Method 1: Wanna Be A Baller.

The more I grow my eToro portfolio, the higher my eToro Club membership status becomes.

Higher status levels automatically unlock currency conversion fee discounts.

The highest threshold is Diamond, triggered at US$250K – and it comes with an 80% discount on the 150bps fee.

See below for other levels:

I’m in a fortunate position today. I could dump US$250K into the account and pay a minimal fee.

But when I was starting out, I was depositing much smaller sums. Roughly $500-$1,000 every few months.

And that would have triggered the maximum 150bps spread each time.

eToro has also been reducing the size of the discount. Until late 2025, having a $250K portfolio would qualify you for a full 100% discount.

Which is why I’m so excited to share with you my second method. It works best when depositing modest sums of money.

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.

Method 2: The Secret Revolut Hack.

Revolut is a fintech app that offers everything under the financial sun – savings accounts, loans, even access to the stock and crypto markets.

Do you see where I’m going with this?

Yes, Revolut can be used to swap AUD for USD – without paying a hefty 150bps spread.

Here’s how I use Revolut to bypass eToro’s currency exchange fee:

Revolut only charges me 0.15% (or a AU$1.80 flagfall, whichever is higher) for the pleasure of converting AUD into USD. Let me reiterate. That’s 0.15% versus eToro’s 1.5%.

That’s 10X less.

And there’s no spread.

You’re welcome.

How does this work?

Revolut charges currency conversion at the interbank rate, which is the rate that banks use to trade with each other. It’s almost always the lowest rate possible.

It’s also much lower than rates offered by the big Australian banks.

Let me illustrate with a real-time example. Here’s today’s screenshot from a live conversion preview in my eToro account:

Here’s the same in Revolut:

And just for fun, here’s the same from Westpac:

As you can see, Westpac gives me by far the least amount of USD for my AUD.

eToro does slightly better. And Revolut is miles ahead.

Is this too good to be true? Well, yes.

Because Revolut needs to make money, too.

Remember the 0.15% or $1.8 fee I mentioned? We must add that into the equation. Here’s how total fees stack up when depositing AU$1,000:

You can see that eToro’s effective FX rate today is actually higher than the claimed 150bps, at 206bps.

And Westpac fleeces its customers completely, charging 365bps that translates to almost $35 for every AU$1,000 exchanged.

Paying eToro’s $19.12 currency spread on $AU1,000 might not seem excessive at first glance. But the fees get scary at larger sums.

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.

Before I wrap up, I’d like to share a couple of caveats.

Exceeding the limit triggers a conversion surcharge (roughly 0.5%, depending on plan).

If I was to regularly exceed the ceiling, I’d upgrade my Revolut plan (which lowers the 0.15% fee as low as 0.03% – but attracts an up to $28.99/month fee instead).

Outside of these hours, they’ll charge a 1% (on a Standard plan) or 0.5% (Plus plan) markup. Premium and Metal plans don’t attract a markup.

That’s it! Thank you for stopping by.

Steven

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.

Steven

That old chestnut among Aussie investors — should you use a CHESS sponsored broker or opt for one with a custodial model?

It’s often a heated debate in online investing forums, but you can’t really make an informed decision if you’re unclear about ‘what exactly is CHESS sponsorship?’

(Related: 14 Best Share Trading Platforms In Australia).

CHESS: What Does It Mean?

CHESS is an acronym that stands for Clearing House Electronic Subregister System — it’s the system the Australian Securities Exchange (ASX) uses to do two very important things:

Despite the somewhat confusing terminology, ‘CHESS sponsored’ essentially means your broker ‘sponsors’ your use of CHESS.

The broker provides you with your own unique identifier in the system, and grants you direct legal ownership of any Australian shares you’ve purchased.

The system is owned and operated by ASX Settlement Pty. Limited (ASX Settlement), which is a wholly owned subsidiary of the ASX.

Several securities exchanges in Australia use CHESS, including the ASX, CBOE Australia and the National Stock Exchange (NSE).

(Related: Best Copy Trading Platforms In Australia).

When And Why Was CHESS Sponsorship Introduced?

CHESS was first introduced in 1994, so the system is now 30 years old.

At the time of its introduction, it was considered world-leading, because it allowed Australia to:

Almost all other countries continue to use custodial systems.

And we’re no longer looked upon as a leading example.

In fact, CHESS is considered somewhat outdated today compared to systems used in some other countries.

However, the project was riddled with problems and was eventually, and controversially, abandoned by the ASX in 2022, with the company writing off around $250 million in costs related to its failure.

(Related: Ultimate Guide To Investing In Shares For Beginners.)

How Does CHESS Impact Buying Shares?

When investing on the ASX, to access the benefits of CHESS sponsorship you’ll need to create an account with a broker that uses the model.

Most brokers make it clear on their website whether they offer CHESS sponsorship or not, but if in doubt you can always reach out directly to ask.

When you sign-up with a CHESS sponsored broker you will:

Your HIN is what links you to your assets within CHESS and grants you direct ownership of those assets.

When you buy stock using a CHESS sponsored broker, after about two days the system will finalise settlement of that trade by transferring legal ownership of the shares to you.

It also simultaneously sends the payment from your bank account to the seller’s account.

Note that international shares are always held by a custodian, even if your broker offers CHESS sponsorship.

(Related: 7 Best Crypto Exchanges In Australia).

The Purpose Of HINs.

Each HIN is a unique 10-digit identifier, generally they start with an X.

Each account you open with a CHESS sponsored broker will have its own HIN, so you can accumulate multiple HINs if you maintain multiple brokerage accounts. Any shares bought through a particular account will be linked with the associated HIN.

Let’s say you want to switch accounts to access lower fees, HINs help make the transition of all your assets smooth, and you can retain the same HIN.

You’ll receive CHESS holding statements for each HIN you hold, which notify you of any changes to your holdings.

That helps you keep track of what you own and the performance of assets in each account easily — as they’re all linked to a single identifier.

(Related: Coinbase Review: Pros, Cons & Verdict).

Pros And Cons Of CHESS Sponsorship.

CHESS sponsored brokers aren’t unequivocally better than a platform with a custodial model, as every system has upsides and downsides.

The main advantages of CHESS Sponsorship include:

The potential negatives of a CHESS sponsored broker could include:

For instance, a custodial broker may be more likely to enable trading across multiple international exchanges (where CHESS doesn’t apply) and offer fractional share ownership so you can spend what you can afford to buy expensive stocks.

How Does CHESS Sponsorship Differ From Custodial Models?

The key difference between CHESS sponsored brokers and custodial brokers is that a custodial model typically operates under a single ‘omnibus’ HIN.

So, your assets can’t be held by you directly, instead they’re held in trust by a third-party custodian appointed by the broker under the supervision of a trustee.

What really gets people riled up in online forums is the idea that under a custodial broker the investor does not have legal ownership of the shares they’ve purchased:

What are the implications of this?:

Is The Custodial Model Really Less Safe?

A custodial broker going bust has happened in Australia before, and it proved difficult for investors to claw back the money they were owed.

If you use a CHESS-sponsored broker, there is zero risk of losing your Australian-listed shares, because you always have legal ownership.

The insolvency risk sounds bad, but it shouldn’t be seen as an instant deal breaker. Brokers failing is rare in Australia due to our strong financial regulation so the risk is relatively small.

On the plus side, the custodial model often results in lower trading fees for investors, making it popular with investors who trade frequently.

Also, many micro-trading apps that help you get into an investing habit based on spending smaller amounts use the custodial model for precisely this reason.

Some of the more popular custodial brokers in the Australian market include:

(Related: eToro vs Stake – Which is Best for Australian Investors?)

What Protection Measures Actually Matter In A Broker?

CHESS sponsorship is definitely a nice-to-have, but you should evaluate potential brokers on their overall stability and security. It pays to double-check they’re registered with ASIC, and briefly look into their history and where they operate from.

Other signs of a well-run broker include:

Top 10 CHESS-Sponsored Broker Platforms In Australia.

Thinking you’d prefer a CHESS sponsored broker? Here are 10 prominent platforms worth investigating:

Choose A Broker That Ticks Your Boxes.

Counterparty risk is avoided through CHESS sponsorship, but as long as you use a reputable broker — issues arising from a custodial model are unlikely.

Millions of people around the globe safely invest and trade with custodial brokers every day.

Whether a broker offers CHESS sponsorship should be just one of many considerations (alongside cost, security, usability and market access) in choosing the best broker for you, even if you only ever plan on investing in ASX-listed shares.

Jody

Equipped with advanced tools, zero commissions and a sleek interface, Webull makes every trader feel like they’re in the big leagues – without the stuffy suits or the skyscraper offices.

Then there’s eToro. Less Wall Street, more Silicon Valley.

A platform that isn’t just about trading, but about making investing less clunky, time-consuming and intimidating.

eToro wants you to connect, learn and even copy the strategies of seasoned pros. It’s a refreshing alternative to the grind of technical charts and endless analysis.

But which one should you pick?

Do you want to be the lone wolf, deep in data, dissecting trends? Or the social butterfly, gliding through a sleek interface while borrowing wisdom from the best?

Let’s dig in.

eToro vs Webull: My Quick And Dirty Verdict.

If your investing life revolves around ETFs, Webull is your go-to.

Its zero-commission ETF trading is a godsend. But beyond that? Webull feels more like a supporting act than the main event.

Features like CopyTrade and Smart Portfolios take the guesswork out of investing, making it easy to mirror professional strategies without hours of research.

Sure, eToro costs more, but the added tools and a much larger range of assets can make it worthwhile – if you value convenience and diversification.

Selection Of Assets.

Webull focuses on US and Australian markets, offering a solid foundation for equity and ETF trading.

But the cracks start to show when you venture beyond these regions.

Yes, it will let you buy popular shares and ETFs, but it falls short if you want to build a well-diversified, multi-asset, long- and short-position portfolio.

(Related: How To Buy US Shares In Australia).

In contrast, eToro takes the lead with a more extensive selection of over 20 global equity markets, including Europe and Asia, while it also covers a broader range of cryptoassets (101 versus 8).

To be fair, it’s unlikely you will want to trade more than five cryptoassets.

(Related: 7 Best Crypto Exchanges In Australia).

However, for investors who want to diversify their mainstream asset exposure across multiple geographies, this is a meaningful difference.

Trading Tools & Features.

This section is where the two platforms take different paths.

Webull’s trading tools are certainly among the more feature-rich available to investors.

Its latest platform release (Desktop 8.0) a real challenger to the offerings of some of the most established names, such as CMC Markets.

This release offers a raft of new charting capabilities targeting the more sophisticated investor that is trading options, futures and CFDs.

Beginner investors will likely be better off starting with WeBull’s trading app which strips back a lot of these features, removing unnecessary distractions and making it a much easier place for investors to start.

(Related: 19 Highest-Performing ETFs In Australia).

Overall, Webull provides a gateway for beginner investors, while its recent updates appear to be an attempt to lure investors from the more established brokers, such as Interactive Brokers.

The one negative is that the desktop version of its mobile app does not replicate the smooth user experience of the mobile version, which may irritate some users.

The platform will feel familiar to investors who have grown up on social media.

While more advanced features are available, these are not front and centre. This makes the problem appear more friendly and less confusing to investors just starting out.

Great examples of this are the social features like CopyTrade that make it easy to follow and mimic the moves of successful investors, while SmartPortfolios offer targeted investment portfolios (without management fees) to themes such as ‘Big Tech’.

Think of it as a shortcut for time-poor investors or beginners unsure where to start.

Should you want to strike out on your own into the world of analysis, eToro will support you with professional tools, such as TradingView and an economic calendar. 

(Related: 15 Best Share Trading Platforms In Australia Compared).

The slight nuance of eToro is that, while it’s clearly aimed at less experienced or time-poor investors, it also offers an enticing upside to professional investors.

A bit like fund manager fees, but for retail traders, with a 1.5% commission structure offering a not-to-be-sniffed at passive income for professional investors.

For example, if you have $500,000 in AUC and at least 10 people copying your strategy, you’d pocket $5,500 annually in commission.

User Experience.

User experience is definitely an area that lets Webull down. While its Android/iOS app functions on par with its competitors, the desktop version is borderline unusable.

For some investors this won’t be an issue, but being able to switch seamlessly between phone and desktop versions of apps is a feature that is more or less expected these days.

Its user experience is consistent across devices, with a design ethos that feels more like Instagram than a traditional broker.

For younger, mobile-first investors, this seamlessness is a huge win and is reflective of eToro’s more premium feel in general.

(Related: Best Automated Trading Platforms In Australia).

Fees & Commissions (How They Make Their Money).

This new wave of zero-fee commission online brokers is beginning to feel as much of a scam as Coles’ ‘new lower price’ labels.

Trust me, you are being charged. It’s just less obvious.

FX fees, payment for order flow, and other sneaky charges can eat away at those savings faster than you’d expect.

eToro is more upfront about its costs.

Yes, they’re higher, but the tools and features you get in return make it feel like a trade-up rather than a trade-off.

It should be seen as a premium product offering to save people their most valuable asset, time.

This is reflected in its eToro club.

The club is a bit like airline status (which may excite most Aussies reading this!).

The more money you invest with eToro, the more you’ll get back.

Fees are discounted by 50% at the Platinum ($25,000) Level, while Diamond ($250,000) Level investors will have conversion fees waived, be ‘wined & dined’ at sporting events and receive a Priority Pass for airport lounges.

That said, the key point regarding broker fees, is understanding how the broker is making money.

For example, Webull offers zero-fee commissions on ETFs, but its higher FX fee conversion fee may make it less attractive for global equities.

That information allows you to choose the fee structure that is most beneficial to you.

So, this is a somewhat transparent look at how both eToro and Webull will make their money.

What is payment for order flow? Payment for order flow is the most controversial charge. Brokers sell their clients’ orders to market makers who pay the brokers for these orders.

The market makers trade with the orders by taking the other side of the trade, thus establishing an execution price.

This is done by both eToro and Webull, with both brokers requiring a written request to receive the full financial details on how much each broker is making from this practice.

It’s worth adding that while this practice is controversial, it’s common for almost all brokers and for a buy-and-hold investor; a few cents’ difference in trade price is very unlikely to have a material impact on your performance over the long term.

So, what’s the takeaway? If you’re focused on ETFs or US-listed stocks, Webull’s pricing structure can work for you.

But for a broader investment strategy and premium tools, eToro’s higher fees might actually save you time – and money – in the long run.

Security Measures.

Both platforms are registered with the major financial regulators, with IPO ambitions that promise even more accountability.

Webull also offers CHESS-sponsorship, meaning any shares you buy are held in your name rather than by a custodian. By comparison, eToro doesn’t offer this.

But for most investors, the difference is unlikely to have any real-world impact. Thanks to tighter financial regulations, the days of brokers vanishing with client funds are all but behind us.

Customer Support.

Let’s face it, customer support is not something many brokers do well.

Webull does offer a little more than eToro here, with phone support to complement its FAQ section, live chat, and email options.

Well, it’s hit or miss. Some queries get resolved quickly and effectively, while others get bogged down in delays or vague responses. Then there’s the recurring gripe: promotional offers tied to sign-ups or referrals.

These are littered with small print, which Webull appears to be relying on to get them off the hook.

Complex issues often require email support, which can move at a glacial pace. But eToro does have one ace up its sleeve: its social trading community.

Often, the collective wisdom of experienced users can solve problems faster than official channels.

In short, neither platform is winning awards here, but Webull’s promotional hiccups give it a slight edge in frustration levels. Proceed with patience – and low expectations.

Exploring Common Complaints.

When analysing negative reviews, three main concerns frequently arise:

Let’s start with the first issue: users losing money due to positions being closed, often attributing this to a failed stop-loss.

Important Reminder.

Stop-losses aren’t typically guaranteed, especially during periods of high market volatility.

It’s understandable to feel frustrated when a position closes at a larger loss than expected, only to see the market rebound later.

However, the broker isn’t being unfair – it’s simply executing your order under the market conditions at that time.

The takeaway? Stop-losses are a useful tool, but they’re not foolproof. Always use them with care.

Next, Know Your Client (KYC) Regulations.

If you’re frustrated by the amount of personal information requested, understand that it’s a compliance requirement. This is especially true for U.S.-based brokers, which face stringent anti-money laundering regulations.

These rules are becoming increasingly strict, so expect more data requests in the future. Refusing to comply could lead to account restrictions, so it’s best to stay proactive.

Annoying? Yes. Avoidable? No.

Lastly, Deposit And Withdrawal Delays.

For buy-and-hold investors, minor delays in fund transfers are unlikely to matter. If you’re planning to hold Tesla shares for years, whether it trades at $800 today or $802 tomorrow won’t significantly impact your strategy.

However, for day traders or those who need quick cash flow, delays can be disruptive. These platforms aren’t banks, so having a contingency plan and maintaining some liquidity inside and outside your trading account is wise.

Tom

Stake’s offering is straightforward perfect for investors who want the bare minimum. But in a world where brokers are battling to innovate, is simplicity enough?

Enter eToro, with its broader selection of assets, social trading features like CopyTrade and Smart Portfolios, and a user experience that feels as smooth as scrolling your Instagram feed. It’s aiming squarely at investors who want ease and innovation.

So, is Stake quietly genius or just too basic? Is eToro all style and no substance? Let’s break it down.

eToro vs Stake: My Quick & Dirty Verdict.

I’ve researched many Aussie brokers over the past couple of months. Normally, their target market is quite clear.

With Stake, however…

I’m not sure who it’s targeting.

Its fees are low, but not the lowest (Interactive Brokers being the cheapest for international trades and CMC beating it domestically if you trade <$1,000 per day).

(Related: 9 Best Online Brokers In Australia).

Its ‘Stake Black’ subscription doesn’t exactly scream premium – it’s more like it’s catching up to the competition, providing the type of features and services most brokers provide as standard.

And while its customer service doesn’t let it down, it’s hardly a selling point.

eToro, on the other hand, knows exactly who it’s for: investors who want a polished experience.

Time-poor? Beginner? No patience for clunky tech? This one’s for you.

Social features like CopyTrade and Smart Portfolios are a godsend for beginners or anyone who doesn’t have time for endless research.

Yes, it costs more, but if you use its tools effectively, eToro’s premium offering might pay for itself in the long run.

Selection Of Assets.

Stake keeps it simple. Two equity markets: Australia and the US. Beyond that?

You’ll need to use a range of US-traded ETFs for more diverse exposure.

It’s fine for those who want to dabble in local or US markets, but the lack of direct access to European or Asian stocks will frustrate many investors.

Over 20 equity markets. Commodities. Crypto. Indices. Forex.

(Related: Best Cryptocurrency Exchanges In Australia).

While it may not have that Polish telco available on Interactive Brokers, it’s a veritable buffet in comparison to Stake’s offering.

Normally, too much choice would probably be a bad thing for retail investors.

However, Stake’s limited offering means investors will have to use ETFs to build out a diverse portfolio.

Therefore, investors need to consider whether they want to use multiple brokers and if Stake is worth having as part of that.

(Related: 19 Highest-Performing ETFs In Australia).

Trading Tools & Features.

This section is where the two platforms take different paths.

Stake is all about simplicity. You can deposit, trade, and withdraw. That’s it.

This is probably all most investors need, but the $14 monthly subscription for basic analysis containing publicly available info feels a bit of a stretch.

For context, that’s $168/year on top of your trading costs.

eToro, on the other hand, really understands what a ‘premium’ service should look like.

Its eToro club is similar to Australia’s #1 national sport – airline status. The more money you invest with eToro, the more perks you get.

Fees are discounted by 50% at the Platinum ($25,000) Level, while Diamond ($250,000) Level investors will have conversion fees waived, be ‘wined & dined’ at sporting events and receive a Priority Pass for airport lounges.

(Related: 15 Best Share Trading Platforms In Australia Compared).

It comes also comes armed with time-saving features, such as CopyTrade and Smart Portfolios.

Want to mimic a top investor’s moves? Done.

Want to invest in a ‘Big Tech’ portfolio? Easy (and, no management fees!).

These tools aren’t just features; they’re game-changers for anyone short on time or confidence.

Clearly, none of this is essential to investing (although the fee discounts remove the biggest frustration with eToro).

But at least eToro shows a clear understanding of its target market and, if you have a larger portfolio, why not receive some perks for it?

Not only can you access professional tools, such as TradingView and an economic calendar, but there’s an enticing upside with eToro: the broker pays you a cut of your Assets Under Copy (AUC).

A bit like fund manager fees, but for retail traders, with a 1.5% commission structure offering a not-to-be-sniffed at passive income for professional investors.

For example, if you have $500,000 in AUC and at least 10 people copying your strategy, you’d pocket $5,500 annually in commission.

User Experience.

There is not a whole lot separating these two platforms in terms of user experience.

Both can be accessed via their website and Android/iOS apps (which contain almost all the same features as the full web platform).

eToro will feel much more like a social network, whereas Stake sticks to its no-frills, monochrome layout, which functions pretty seamlessly.

It’s unlikely anyone would be unhappy with the user experience, and this is unlikely to be a factor in deciding between these brokers.

Fees & Commissions (How They Make Their Money).

When it comes to fees, the devil is most definitely in the detail.

On the surface, Stake’s fees look great: $3 per trade for US and ASX stocks. But dig deeper, and the cracks start to show.

eToro’s 1.5% FX conversion fee is worse, no question – its mandatory conversion to US dollars really lets the broker down in the Aussie market.

But basic company analysis is free, and there are no restrictions on trading.

Plus, a $5,000 balance gets you into the eToro Club, unlocking perks like a dedicated Account Manager, interest on cash balances (up to 4.55%!) and discounted fees.

eToro, while pricier, feels like a premium product, designed to save your most valuable asset, time.

This can be a trade-off worth making if your focus is on your primary income, not micromanaging your portfolio (particularly if you have a larger portfolio).

Security Measures.

Both companies are registered with the ASX and FINRA (Stake via its US broker, DriveWealth). eToro is registered with a few more, reflecting the increased number of tradable markets on its platform.

Stake offers CHESS-sponsorship, which is not offered by eToro.

CHESS-sponsorship means the shares are purchased in your name, rather than held by a custodian for your benefit.

Nice, but largely irrelevant for most investors. eToro counters with $1 million insurance per account and segregated investor funds.

Unless you’re trading over $1 million, security shouldn’t be a deciding factor.

Customer Support.

Ah, customer support… the Achilles’ heel of almost every broker.

Stake is pretty limited in its offering, with just email support available beyond its FAQ section.

That said, the responses to queries are generally pretty good, and it at least feels like the representative has genuine expertise in the area, rather than just copy + pasting replies.

On top of an FAQ section and email support, it offers a live chat option for club members.

This does feel quite generic in its responses, however, meaning most investors will need to use its email support, which can be painfully slow for detailed queries.

One positive is that its social network influence provides a community that can be a great additional support option.

Understanding Negative Reviews.

Three common complaints emerge in user feedback:

Let’s start with the first issue: financial losses. Many users attribute this to stop-loss orders failing.

Important Context.

Stop-losses are not guaranteed to execute at your exact price, particularly during periods of high volatility.

It’s frustrating to have a position closed at a significant loss, only to see the asset rebound afterward. However, brokers execute orders based on the market, which doesn’t always align with your expectations.

The takeaway? Stop-losses are a great risk management tool but are not foolproof.

Next, Let’s Address KYC Regulations.

If you feel bombarded by personal data requests, know that this is a regulatory requirement to combat money laundering. U.S.-based brokers, in particular, must adhere to strict compliance rules.

With regulations becoming stricter, more information requests are inevitable. Non-compliance could lead to frozen accounts, so staying compliant is essential.

Inconvenient? Yes. Avoidable? No.

Lastly, Fund Transfer Issues.

For long-term investors, small delays in transferring funds usually aren’t a big deal. If you’re holding Tesla stock for the long haul, a slight variation in today’s price won’t matter.

For active traders, however, these delays can be more problematic. Remember, trading platforms aren’t banks, so keeping some liquidity on hand – both in and out of your account – can help mitigate disruptions.

Steven

Interactive Brokers. For anyone debating which broker to pick for their investing strategy, that name has probably popped up more than once. And with good reason. The longest track record, competitive fees, and a menu of assets so vast it makes Netflix’s catalogue look modest.

It sounds like the case is closed; move on, right?

Except – not so fast.

The investing world has been shaken up in recent years.

Platforms like eToro have emerged onto the scene, armed with modern interfaces, clever features and enough innovation to make even the most grizzled investors raise an eyebrow.

You’ve probably seen eToro’s name plastered across an A-league jersey or two, as the brokerage seeks to become a household name among Aussie traders.

Let’s explore if there’s any substance behind the marketing and whether they might be a worthy contender to an industry stalwart, such as Interactive Brokers.

(Related: 10 Best Share Trading Platforms In Australia).

eToro vs Interactive Brokers: My Quick & Dirty Verdict.

Are you the kind of investor who needs maximum control and flexibility? Are you willing to endure the quirks of a platform trying hard to shed its legacy pain points?

Interactive Brokers might be your pick.

While its user interfaces are still catching up to the new wave of UX-first competitors, it’s clear that IB is putting in the effort to modernise.

IB remains a heavyweight contender. It’s a sprawling, feature-rich platform for traders who demand it all – but are willing to acknowledge its progress alongside its quirks.

(Related: eToro vs Webull: Which Is The Cheapest Broker)?

But if you’re short on time, have no patience for clunky tech, and want investing to feel as smooth as scrolling your Instagram feed?

eToro could be right up your street.

In addition, its social features – CopyTrade, Smart Portfolios – are absolute gold for beginners or anyone who wants to outsource stock research to people with a proven track record.

Yes, it costs more. But if used correctly, eToro’s ease of use and premium features could pay for itself faster than you think.

Selection Of Assets.

Interactive Brokers’ asset selection is, quite frankly, absurd.

It’s the kind of range that would make a professional trader drool. Want to short some obscure stock listed on a Bulgarian micro-exchange?

They’ve probably got you covered.

But here’s the thing: most people don’t need that much choice.

90% of investors trade the top 100 stocks on the ASX, NYSE and NASDAQ, making eToro’s selection of over 6,000 securities more than enough.

In absolute terms, Interactive Brokers is the clear winner of this section. But if this matters to you, you probably already know this.

(Related: Best Cryptocurrency Exchanges In Australia).

Trading Tools & Features.

This is where the eToro and IB take different paths.

Until recently, Interactive Brokers’ user experience was about as modern as Windows 98.

Its response has been to throw the kitchen sink at you: seven proprietary trading platforms, APIs, and a suite of tools that they hope will cover everyone from beginners to Wall Street pros.

Impressive, sure.

But potentially overwhelming for anyone who isn’t a spreadsheet-toting savant – and a huge source of complaints for current users.

Here’s a quick breakdown of IB’s key platforms:

These offerings are a step in the right direction.

Are they market-leading in terms of user experience? No.

This is the trade-off for offering that Bulgarian micro-cap stock alongside the other 3 million+ securities.

(Related: 19 Best ETFs In Australia).

If that level of depth is important to you, then you’ll be more than happy to spend more time learning the platforms.

One platform.

Clean interface.

Social features like CopyTrade make it easy to follow and mimic the moves of successful investors, while SmartPortfolios offer targeted investment portfolios (without management fees) to themes such as ‘Big Tech’.

Think of it as a shortcut for time-poor investors or beginners unsure where to start.

(Related: eToro vs Stake: Which Is Best For Aussies?)

And, should you want to strike out on your own into the world of analysis, eToro will support you with professional tools, such as TradingView and an economic calendar. 

And if you’re a pro?

It is a bit like fund manager fees, but for retail traders, with a 1.5% commission structure offering a not-to-be-sniffed passive income for professional investors.

For example, if you have $500,000 in AUC and at least 10 people copying your strategy, you’d pocket $5,500 annually in commission.

Both platforms offer margin lending services – and are among the most competitive on the market at just 6.993% for Interactive Brokers and 6.45% + the relevant benchmark for eToro.

User Experience.

User experience is definitely an area to take note of.

eToro benefits from being a newcomer to the industry. Its platform is slick. Mobile, desktop – it all just works.  

Interactive Brokers?

It’s not great, but the broker could be in the running for the most improved player.

At best, it’s functional for now.

And, to be fair to its development team, producing a platform with advanced functionality and super smooth UX is tough – particularly without passing on these costs to the end-user.

Whether the UX is a dealbreaker will largely depend on how much you value what Interactive Brokers provides over and above its competitors.  

Fees & Commissions (How They Make Their Money).

No sugarcoating it: eToro is the more expensive platform. But you’re paying for a premium product.

Features like CopyTrading and Smart Portfolios save time and effort, which can be a trade-off worth making if your focus is on your primary income, not micromanaging your portfolio.

This illustrates the client eToro is most likely targeting, which is reflected in its eToro Club.

The more money you invest with eToro, the more you’ll get back.

Currency exchange fees are discounted by 50% at the Platinum ($25,000) Level.

Diamond ($250,000) Level investors will have conversion fees waived, be ‘wined & dined’ at sporting events and receive a Priority Pass for airport lounges.

None of this is essential to investing, although the currency exchange fee discounts remove the biggest frustration with eToro.

That said, if you have a larger portfolio, why not receive some perks?

On the other hand, if you are trading in high volume and/or are fee-conscious (think more experienced investors, particularly day traders), Interactive Brokers may be the most cost-effective option, mainly if the premium perks aren’t a selling point.  

Domestic Equities.

International Equities.

Security Measures.

Both companies are registered with most of the major financial regulators.

Interactive Brokers is registered with a few more and is publicly traded on the NASDAQ, increasing the transparency around this company.

While this should result in a slightly more secure company, it’s worth noting that Interactive Brokers has had several issues related to its risk management, resulting in $48 million in losses.

Moreover, its third-party ID verification provider left login credentials exposed online for over a year.

Still, these issues point to an overall theme of Interactive Brokers patching its software, which can lead to a sub-optimal experience.

Customer Support.

Ah, customer support.

The Achilles’ heel of almost every broker.

Interactive Brokers? Account setup is a notorious slog.

Beyond that, its customer service is typically painful and slow.

It offers live chat, phone support and a ticket system associated with the better offerings, but none will be a pleasant experience.

Your best option is the ticket system, where you are likely to receive bespoke responses but do not expect a fast turnaround.

eToro is better – but not by much.

While the set-up is generally less painful, it has more limited customer support once an account is set up.

For example, there is no live chat option for basic users, and for more complicated issues, you’re stuck raising an email ticket and waiting for a response.

Customer service is an area all brokers could improve on.

Diving Into Negative Feedback.

Negative reviews tend to focus on three recurring themes:

Let’s address the first concern: losing money. Many users report their positions being closed out, often blaming stop-loss failures.

Key Insight.

Stop-losses aren’t a guaranteed safety net, especially in fast-moving markets.

It’s painful to see a position closed at a greater loss than anticipated, only to watch the market recover afterward.

However, brokers aren’t at fault here – they’re simply executing orders based on prevailing market conditions.

The lesson? Stop-losses are a helpful tool but not without limitations. Use them wisely.

Now, Let’s Talk About KYC Requirements.

Being asked for extensive personal information may feel intrusive, but it’s part of the platform’s compliance process.

U.S. brokers, in particular, face strict anti-money laundering laws, so don’t be surprised by these requests.

With regulations tightening, expect more data demands over time. Non-compliance could lead to account freezes, so it’s better to stay ahead of these requirements.

Annoying? Definitely. Avoidable? No.

Lastly, Issues With Fund Transfers.

For long-term investors, delays in deposits or withdrawals are less of a concern.

If you’re holding onto Tesla shares for years, a small difference in today’s price won’t make much impact. For short-term traders, however, timing is crucial.

Since trading platforms aren’t designed to function as banks, having a backup plan and maintaining some liquidity can help reduce stress.

Steven

CommSec, or at least CommBank, will likely be a familiar name to anyone reading this article. eToro, on the other hand, might be a name that is less well-known to some.

That said, eToro is one of the fastest-growing brokers globally, with 33.4 million users – ten times CommSec’s 3 million. So, is this a simple case of choosing between the more boring, traditional, but trustworthy incumbent versus a shiny, new, but potentially riskier challenger?

Or is there more for an investor to consider?  

This article will offer an honest and unbiased analysis of the two platforms, while offering insight into the best platform for your situation.

(Related: 10 Best Share Trading Platforms In Australia).

eToro vs CommSec: My Quick & Dirty Verdict.

Be honest.

Are you someone who has banked with CommBank for your whole life because your parents did, and their parents did, and their parents did?

Your account will be linked to your banking app, and it will function pretty well. But you can also expect all the usual pain points associated with a ‘Big 4’ bank.

(Related: eToro vs Webull: Which Is Best?)

Not a current CommBank client and want a trading app that meshes the latest trading technology with a social network? eToro will most likely suit your needs best.

Finally, while both platforms target a typically younger and less experienced investor, the slight nuance is that an expert trader can profit from eToro’s users under copy (UUC) feature.

This works somewhat like how a fund manager profits from taking a percentage of assets under management (AUM). This feature might make eToro an attractive proposition to a professional investor.

Selection Of Assets.

There is a clear difference in tradable securities available between CommSec and eToro.

While eToro has a strong lead in the number of exchanges it gives you access to, most retail investors will never venture past NASDAQ, NYSE and the ASX.

(Related: Best Cryptocurrency Exchanges In Australia).

When was the time you bought an equity on the Toronto or Bombay stock exchange? That’s right, never.

In addition, CommSec’s inability to trade crypto may be a deal breaker for some.

Trading Tools And Features.

In terms of the features offered, the two provide quite different offerings.

eToro leans heavily on its social trading features, and is likely the main reason an investor chooses this platform.

CommSec again focuses on convenience, while its educational material and investment analysis may be more suited to the more sophisticated investor.

There is also the option to use their Smart Portfolios, created by eToro’s professional analysts and allow you to home in on a particular sector or theme, such as early-stage AI or healthcare.

Investors can study the past returns of expert investors and the various Smart Portfolios before deciding where to invest their money.

While these are no guarantee of success, the range of strategies can be a great resource for:

Commsec, meanwhile, offers a somewhat unique product called Pocket. This allows investors to access a small pool of ETFs from as little as $50.

This might be useful for a new investor to experience investing and get comfortable with smaller sums of money.

These cover most major markets, and this strategy has been championed for retail investors by investors such as Warren Buffet.

Personally, I prefer to buy ETFs directly rather than buying them through CommSec Pocket at hugely inflated prices.

(Related: eToro vs Stake: Which Is Best For Aussies?)

A good feature CommSec offers is the ability to purchase on credit and transfer funds later, which is not available through eToro and can be a frustrating experience.

Charting tools are available on both platforms, alongside company analysis and educational materials. eToro’s offering has more of a retail feel, with some of the company analysis sounding suspiciously like ChatGPT.

Consequently, a more sophisticated investor may prefer this experience, which may provide a more nuanced view beyond the simple explanation of the data.

(Related: 19 Best ETFs In Australia).

User Experience.

CommSec has endeavoured to improve its user experience, but it still lags behind what you would expect and is a clear pain point with users.

It will feel more like your favourite apps, particularly social networking ones.

Beyond this, both platforms can be accessed via their website and Android/iOS apps (which contain almost all the same features as the full web platform).

Fees And Commissions (How They Make Their Money.)

Fees are a big factor when considering either of these platforms as neither would be suited for the most cost-conscious investor.

Consequently, this is reflected in the higher-than-average fees charged.

That said, despite CommSec just offering the more traditional range of features, its fees are still relatively uncompetitive.

Domestic Equities.

As you can see, for anyone wanting to trade exclusively on the ASX, eToro is going to be less attractive due to the 1.5% conversion fee each time you deposit or withdraw assets.

However, for those looking to trade internationally, this is less important, as CommSec will charge a conversion fee on top of higher trade costs.

Neither is as competitive as dedicated no-frills budget brokers, like MooMoo.

CommSec is charging for the ease of use (if you’re an existing CommBank customer), while eToro are charging you for the access to the additional features it offers, such as CopyTrading.

eToro has the potential to save you more time via its CopyTrading and Smart portfolios, but only if these are features you would use.

Security Measures.

Both companies are registered with most of the major financial regulators (CommSec via CommBank internationally), while CommBank is publicly traded on the Australian Stock Exchange, increasing the transparency around this company.

In addition, CommSec offers CHESS-sponsorship, which is not offered by eToro.

Thanks to improved financial regulation, the days of a regulated broker running off with clients’ shares and funds is now highly unlikely.

In addition, eToro offers insurance of up to $1 million per account, while investor funds are segregated.

Consequently, for accounts under $1 million this is likely a moot point. For accounts over $1 million, investors will likely be experienced enough to make this judgement for themselves.

Customer Support.

Customer support is the one area that lets both CommSec and eToro down.

While they both offer email support and an FAQ section, there is no live chat feature like you get with Plus500, for example.

This could concern investors looking for quicker response times to issues.

CommSec does have phone support and an X customer support account, which goes some way to bridging this gap; hence, slightly edging the scores here.

Exploring The Negative Reviews.

CommSec

Overall, the main complaints here are much the same as you would expect to see with CommBank.

Most relate to customer service; however, the relatively new international site does come in for a lot of criticism as well and is indicative of the generally sub-par user experience offered.

That said, this will unlikely be a surprise to anyone considering CommSec, and it is far from unusable.

eToro

Regarding eToro, the bulk of complaints centre on issues with deposits and withdrawals. As eToro is an online broker and not a subsidiary of a bank (like CommSec), it unsurprisingly will not function like a current account.

Consequently, investors will be subject to waiting times for funds to clear both into their trading account and back into their bank account.

This is not unique to eToro and is a contingency you should probably build into your strategy. Should you want your investment account to function like your current account, you are better off with CommSec.

Both platforms experience negative reviews around personal information. Regarding personal information, financial regulators are taking an increasingly tough stance on their Know Your Client “KYC” regulation.

This means that, as a user, you will be asked to provide A LOT of data, some of it very personal. This is designed to try to prevent money laundering and is simply the platform fulfilling its regulatory obligation.

As these obligations get tougher, you may be asked to provide further information in years to come, so this should not come as a surprise. The platform may be obliged to freeze your account if you do not comply.

Steven

CMC Markets has long held a solid reputation among brokers, frequently topping “best of” lists and consistently delivering on fees and features.

At first glance, it might seem the obvious choice for Aussies serious about trading or investing.

But is that the case?

Enter eToro — a relative newcomer with a unique social approach to trading.

I’m sure you’ve seen its logo emblazoned on the uniforms of soccer teams, as the brokerage seeks to become a household name among Aussie traders. CMC Markets, meanwhile, is doing the same by plastering its brand across train stations and freeway overhead passes.

But which is the better brokerage based on merit, not fancy marketing?

(Related: 10 Best Share Trading Platforms In Australia).

eToro vs CMC Markets: My Quick & Dirty Verdict.

If you’re financially savvy and have plenty of trading experience, eToro and CMC Markets are an even match – but for different reasons.

But what if you’re relatively new to investing — or, let’s be honest, just too busy to dive deep into market research? In that case, eToro might be the broker you didn’t know you were looking for.

Just keep in mind that these perks come with a price tag — a slightly higher cost overall — but one that could easily pay for itself over time if used effectively.

Selection Of Assets.

CMC Markets offers a broader range of assets, making it the better choice if you plan to execute advanced trading strategies and build complex portfolios (e.g., portfolios with both long and short positions across 7-10 asset classes).

However, if this is your main criterion, a broker like Interactive Brokers is arguably better.

Where eToro has the edge is with cryptocurrency trading.

Not only do you have access to more than 10 times the number of coins, but eToro also makes cryptocurrency trading accessible to retail investors without requiring professional status, which could be a significant draw for some investors.

(Related: Best Cryptocurrency Exchanges In Australia).

What is a ‘professional investor’? Not perhaps what you might think.

Above: To qualify as a professional investor, you must pass an asset or trading volume test (relatively easy for any Australian who owns a house and/or is employed in a senior corporate leadership role).

While I could qualify as a “professional investor”, I resist this temptation at all costs.

Note for both CMC Markets and eToro, the fees for trading cryptocurrencies are relatively higher than what you’d get with a dedicated crypto exchange (e.g., BTC Markets), at around 1%.

More on that in the fees section below.

(Related: 15 Best Stock Trading Apps In Australia Compared).

Trading Tools And Features.

This section is where the two platforms take two different paths.

CMC Markets comes equipped with Next Generation and MetaTrader 4 (with a slight reduction in tradable securities), offering professional-grade tools for experienced traders.

This will likely not matter to a trader looking to implement such an advanced strategy, while other investors will be better on the more user-friendly NextGen platform out of the two options.

That said, both these platforms are more suited to advanced strategies but might be redundant for (or overwhelm) a casual buy-and-hold investor.

eToro, by contrast, leans into simplicity and accessibility.

The platform will feel familiar to investors who have grown up on social media.

While more advanced features are available, these are not front and centre when you log in, making eToro more friendly to investors just starting out.

I think of these features as a shortcut. I don’t have the time to check Morningstar stock picks every morning, so I use eToro’s social trading features to buy back my most important asset – time.

So, the user type seems obvious, right? Experienced traders turn left to CMC Markets?

Well, maybe not.

(Related: eToro vs Webull: Which Is The Best Budget Broker)?

Expert traders can also find value in eToro’s model. Investors are paid a percentage of their Assets Under Copy (AUC).

This is similar to how traditional fund managers are paid and, while the commission is modest at 1.5%, it can offer a nice boost to returns over time.

There is a requirement for you to post monthly on the newsfeed and have an investment management qualification, but these are things that you would likely have and be doing as a ‘popular investor’.

Full details are as follows:

User Experience.

There is not much separating these two platforms in terms of user experience. Both can be accessed via their website, and Android/iOS apps (which contain almost all the same features as the full web platform).

Ultimately, this won’t be the deciding factor — it comes down to your investment goals and preferred trading style.

(Related: Best Copy Trading Platforms In Australia).

Fees And Commissions (How They Make Their Money.)

CMC Markets has slightly more cost-effective brokerage fees, particularly for domestic equities, with one free trade (up to $1,000) per day for equity investors.

eToro, meanwhile, charges US$2 per side on shares and ETFs.

(Related: 19 Best ETFs In Australia).

But I suspect CMC’s free tier is a ploy designed to increase user engagement.

For example, I invest about $5,000 at the end of each month. Do I want to avoid brokerage fees? Yes.

Do I want to buy this position in 5 X $1,000 increments, on 5 separate days, to avoid the $11 brokerage? No – because it’s a waste of my time – but I can see many people falling into the trap.

I view features like CopyTrading and Smart Portfolios as time-saving tools, and I’m happy to pay for them.

Why? Because I’m not under any illusion that I can pick the right stocks.

Even professional traders with access to $25,000/year Bloomberg terminals rarely beat the market in a meaningful way.

This is why I spend all my time on increasing my earning capacity – not micromanaging my portfolio.

(Related: Ultimate Guide To Brokerage Fees In Australia).

Security Measures.

Both platforms are registered with the major financial regulators, so you’re covered on the compliance front.

CMC Markets takes it a step further, being publicly traded on the London Stock Exchange — a nice touch for transparency.

It also offers CHESS-sponsorship, meaning any shares you buy are held in your name rather than by a custodian. By comparison, eToro doesn’t offer this.

But for most investors, the difference is unlikely to have any real-world impact. Thanks to tighter financial regulations, the days of brokers vanishing with client funds are all but behind us.

For larger accounts? Well, it would be worrying if they made decisions based on this article!

Customer Support.

When it comes to customer support, neither company scores particularly highly, although this is pretty standard across the industry, with unhappy customers tending to shout louder.

CMC Markets lets itself down with glacially slow opening times for new accounts, while eToro has more limited customer support once an account is set up.

For example, there is no live chat option for basic users and, for more complicated issues, you’re stuck raising an email ticket and waiting for a response, which can be slow.

(Related: eToro vs Stake: Which Is Best For Aussies?)

Neither of these should be viewed as a dealbreaker.

Most investors will likely not encounter these issues, but they are worth being aware of.

For more complicated issues, eToro insists that you raise an email ticket and wait for a response, which can take 24-48 hours. CMC, meanwhile, offers speedy and competent live chat with a real human.

Exploring The Negative Reviews.

Three main themes appear when looking into the reviews:

Let’s tackle the first issue: complaints from users who’ve had positions closed out and lost money, often blaming a failed stop-loss.

Yes, seeing your position closed at a bigger loss than expected can feel gut-wrenching, only to watch the security bounce back into the green afterwards.

The frustration is real, but the broker isn’t being unfair here — it’s simply trying to execute your order, which isn’t always possible at your requested price.

Next up, KYC (Know Your Client) regulations.

If you’ve been asked for an overwhelming amount of personal information, don’t take it personally — it’s just the platform ticking regulatory boxes.

These rules, designed to combat money laundering, are getting stricter, so expect more requests for data over time. Refusing to comply could cause your account to be frozen, so it’s best to stay on top of these requirements.

Finally, for long-term, buy-and-hold investors, the third concern — delays in deposits or withdrawals — is unlikely to matter.

If you’re holding Tesla for years, whether it’s trading at $800 today or $803 two days from now isn’t going to make a dent. But for intra-day traders or those needing quick cash flow, it’s a good idea to build some contingency into your strategy.

These platforms aren’t banks, so don’t expect them to behave like one. Keeping a bit of liquidity on hand— both inside and outside your trading account — can save you some stress.

Tom

EToro and Plus500 are two brands that appear frequently in trading circles. eToro edges the user count with 33.4 million, but Plus500 has a solid 26 million of its own clients and has a market cap of $3.55 billion (latest available figures).

Despite this, their Product Review scores are both 1.4*, which seems antithetic. So, what’s the real story?

This article will attempt to separate fact from despairing investor rant fiction while offering insight into the best platform for your situation.

(Related: Best Cryptocurrency Exchanges In Australia).

A quick heads-up in case this is a deal breaker: eToro is the only platform that allows you to invest in direct equities, ETFs, options or crypto (however, you can invest in these via CFD on Plus500).

eToro Vs Plus500: My Quick & Dirty Verdict.

Are you relatively new to investing and intrigued by the idea of having a trading app that feels as easy to use as Instagram? eToro will most likely suit your needs best.

Have a reasonable amount of experience and plan to trade CFDs only? Plus500 is likely going to be a better fit for you.

eToro’s main differentiators are the CopyTrade and Smart Portfolio features, designed to take the guesswork and timesuck out of investing.

The user most suited to Plus500 will likely not use social trading features and have a more established investment strategy in mind.

Selection Of Assets.

eToro offers a wider range of assets and the ability to directly own equities, ETFs and options.

Plus500 offers a slightly lower number of tradable options, but it offers the ability to trade bonds, futures, and spreads bets.

(Related: 19 Best ETFs In Australia).

Neither platform offers the kind of variety offered by somewhere like Interactive Brokers, but that is neither platform’s target user.

Both platforms will likely satisfy the everyday Aussie beginner/intermediate investor, although let me reiterate: Plus500 targets a different user – one who wants to focus solely on CFD trading.

This makes eToro the better option for the typical beginner-to-intermediate buy-and-hold investor.

(Related: Best Copy Trading Platforms In Australia).

Trading Tools And Features.

eToro’s USP is the ability to CopyTrade, where you can select an expert investor from their platform and replicate their trades.

There is also the option to use their Smart Portfolios, created by eToro’s professional analysts and allow you to home in on a particular sector or theme, such as early-stage AI or healthcare.

The differentiating feature on the downside is the lack of a guaranteed stop-loss facility with eToro. But this may not be too much of a concern for a buy-and-hold investor.

However, this may be an important feature if you plan to day trade, particularly in more volatile markets.

(Related: Ultimate Guide To Day Trading In Australia).

But if you already know what your trading strategy will be and want to stick to only CFDs, Plus500’s tools will provide you with a powerful trading experience.

User Experience.

There is not much separating these two platforms in terms of user experience.

Both use proprietary interfaces, which can be accessed via their websites and Android/iOS apps. The apps contain almost all the same features as the desktop web platforms.

Meanwhile, Plus500 looks and feels more intimidating, but is still vastly better than the user experience you’ll find on “classic” third-party trading platforms (e.g., cTrader, MT4/5).

(Related: 15 Best Stock Trading Apps In Australia).

Fees And Commissions (How They Make Their Money).

For regular investors (you log in more than every three months), eToro and Plus500 will make most of their money on the spreads they offer.

Beyond that, eToro should be seen as a more premium offering as they have to build and support the social network side of trading that Plus500 does not offer.

As a result, eToro is likely to be the slightly more expensive option and be less suited to more experienced investors, particularly day traders (see table below for full details).

This is particularly true if you are likely to be a buy-and-hold investor gradually building a portfolio, as eToro offers good discounts on fees for larger portfolios.

Security Measures.

Both companies are registered with most major financial regulators, including Australia’s ASIC.

Plus500 is registered with a few more and is publicly traded on the London Stock Exchange, increasing the transparency around this company.

As a result, it edges this section on paper, but you should have no security concerns about either platform.

Customer Support.

Customer support is one area in which eToro could improve.

While it still offers email support and an FAQ section, there is no live chat feature like you get with Plus500 (via WhatsApp).

This could be suboptimal for higher-volume traders looking for quicker response times to issues.

Exploring The Negative Reviews.

Three main themes appear when looking into the reviews:

In terms of the first concern, complaints largely come from users who have had positions closed out and lost money, often citing a failed stop-loss.

This can seem very unfair in hindsight when your position gets closed out a greater loss than expected (particularly if that security then recovers and you would theoretically be back in profit – the injustice feels personal).

However, the broker is simply trying to fulfil the order, and it is sometimes not possible to do this at the price you have requested.

On the second point, financial regulators are taking an increasingly tough stance on their Know Your Client “KYC” regulation.

This means that, as a user, you will be asked to provide A LOT of data, some very personal.

This is designed to prevent money laundering and is simply the platform fulfilling its regulatory obligation.

For a long-term buy-and-hold investor, the third point is likely a non-issue.

This investor will not care if Tesla trades at $800 today or $803 dollars in two days. For investors looking to trade intra-day and concerned over cash flow, this is a contingency you should probably build into your strategy.

These platforms are not banks, so do not be surprised when they do not function like your current account.

A good practice is always having cash inside and outside the platform you use should you need to access it.

Tom

As one of Australia’s oldest and largest providers of Contracts for Difference (CFDs) trading and foreign currency exchange (FX), IG is a popular choice of broker. The Australian version of the online brokerage also lets locals invest in both ASX-listed and international stocks.

One of IG’s main draws is its reliability.

The company has been around for 50 years, operates globally in compliance with a broad range of regulators, and is publicly-listed.

But does it offer the best trading experience that’s also kind to your hip pocket?

Best Parts Of IG:

(Related: Best Copy Trading Platforms In Australia).

Worst Aspects Of Using IG:

(Related: eToro vs Interactive Brokers: Which Is Best For Aussies?)

IG Trading Platform At A Glance.

Is IG Good For Beginner To Intermediate Traders?

Yes, IG brokers can be a good option for investors and traders with minimal experience through to more intermediate skills (and beyond, covered below).

That’s because the platform:

However, IG Australia’s focus is squarely on Contracts for Difference (CFDs), which are inherently risky because they encourage the use of leverage.

(Related: Best Cryptocurrency Exchanges In Australia).

If you’re rusty on how to assess and manage risks when opening and closing positions using leverage, or you don’t understand key concepts around slippage, you’re probably not ready to trade CFDs on any platform.

ASIC rules also protect you from negative account balances, but you can still lose every cent held in your account if a trade moves against you.

The customer service from IG in Australia can be hit and miss. The live chat can be highly responsive and helpful, but not always, and phone and email support is sometimes slow.

IG has an average rating of 3.6 on Trustpilot and less than 10K reviews. For comparison, IC Markets has over 38,000 reviews and a rating of 4.8.

(Related: What You Need To Know About ASIC’s Leverage Rules.)

Is IG Good For Expert Investors And Traders?

Experienced and professional traders will find a lot to like about IG’s platform such as:

The biggest downside for experienced traders is probably the cost of trades, but it depends on how you weigh up all-round platform features in terms of their importance.

IG Australia offers a Pro account for highly experienced traders and high net-worth individuals, with lower margins and volume-based rebates.

However, negative balance protection isn’t available when you’re considered a pro.

You can also open Corporate and Trust accounts or an account for your self-managed super fund (SMSF).

(Related: eToro vs Webull: Which Is Best?)

Is IG Ideal For Online Share Trading?

In addition to CFD trading, you can invest directly in over 13,000 shares and ETFs across Australian, US and some European stock markets with an account on IG’s platform.

IG Australia operates under a custodial model where your shares are held on your behalf by a custodian — in the case of IG, that’s Citibank.

In theory, a custodial model could make it harder to retrieve your assets/funds should the broker fail, but that’s a rare occurrence.

(Related: Best Automated Trading Platforms In Australia).

When buying ASX-listed shares, many Aussie investors prefer a CHESS (Clearing House Electronic Subregister System) sponsored broker because you’ll be legally recorded as the shares’ owner via the ASX and be issued a Holder Identification Number (HIN).

Other more salient disadvantages of a custodial model compared to CHESS-sponsored include:

As CHESS-sponsorship is only relevant for Australian shares, if you plan to buy international stocks you’ll be doing so through a custodial model regardless of the broker.

It’s good to be aware of, but it’s nothing to be highly wary of.

(Related: 19 Highest-Performing ETFs In Australia).

IG’s Fees, Spreads, Commissions And Account Charges.

IG’s spreads and commissions are not the lowest available but they are competitive.

Trading Fees.

Non-Trading Fees.

Details Of Deposit And Withdrawals On IG.

What you need to know about funding your IG account and retrieving your money when it’s needed:

What’s The Minimum Deposit On IG?

You can add funds to your IG Australia account using credit and debit cards, Apple Pay, PayPal, and BPAY via your bank account.

Paying by debit card is probably the fastest in terms of money showing up in your account and attracts no fees.

What About Withdrawals From IG?

Withdrawals are typically free and processed within a few days. Credit card providers and other third-party payment platforms may add fees to transactions.

Transferring from IG to a foreign bank account can attract a conversion fee and an extra charge.

(Related: Coinbase Review: Pros, Cons & Verdict).

Like a number of other brokers, you may encounter more delays if you withdraw funds using a different method than used to deposit funds, so keep that in mind.

Are There Fees For Transferring My Assets?

If you decide to change platforms down the line, there’s no fee to transfer your assets to another broker unless you’re sending them to a share registry — such as Computershare.

This attracts a AU$50 fee per line of stock.

Can You Trust IG?

IG is a multi award-winning share trading platform with a long track record spanning five decades, so it’s a trustworthy online broker.

IG is one of several brands that form part of an international company called IG Group, headquartered in London. It started as a spread betting company that let people speculate on the price of gold — known as Investors Gold, which is what IG stands for.

IG Group now employs thousands globally and has operations across 18 countries catering to hundreds of thousands of customers. The company is listed on the LSE under the ticker symbol IGG with a market capitalisation at the time of writing of £3.3b.

It’s one of the largest CFD providers globally and makes the claim of being Australia’s number one platform for CFD trading. In Australia, IG is:

In compliance with local regulation, IG Australia keeps your money separate from funds it uses to run its business — so your cash remains yours and you can be paid in the unlikely event the broker becomes insolvent. It maintains multiple segregated bank accounts under trustee arrangements to protect client funds, with reputable banks like CommBank, Westpac and HSBC.

Quick Fire: Answers To Top FAQs About IG.

Here are some snappy responses to basic questions about using IG in Australia for your investing and trading needs:

Is IG Available To Australian Investors?

Yes, IG offers Australians the ability to trade Contracts for Difference (CFDs) as well as invest in Australian and international shares.

The company has an Australian office located in Melbourne and is regulated by ASIC.

What Kind Of Company Is IG?

IG Group Holdings is the parent company that runs a variety of brands including IG share trading platforms that operate internationally. IG group is a publicly-listed company based in London that describes itself as a global fintech.

In addition to IG for share and CFD trading, the company includes IG Prime for institutional investors, the DailyFX investment news site, and other trading brands Spectrum Markets, Raydius, BrightPool and tastytrade.

Do I Own My Shares With IG?

IG Australia uses a custodial model rather than providing you with CHESS (Clearing House Electronic Subregister System) sponsored shares.

Under IG’s custodial model, ASX-listed shares you buy are held on your behalf by Citibank in a direct custody capacity. The shares are still yours to trade as you wish, and you’ll receive all returns such as dividends.

However, you won’t legally be registered as the shares’ owner via the ASX or be issued a Holder Identification Number (HIN). Some Australians prefer having a HIN as added protection in case their broker goes belly up.

Can I Move Assets To IG From A Different Broker?

Yes, you can move your assets from a different broker to your IG account. First you’ll need to open an account with IG Australia.

Then you can initiate a transfer from within your account settings, which will involve completing a form to provide details about your current broker and assets held. It can take between 2-6 weeks to finalise.

Should You Choose IG As Your Trading Platform?

There are many alternatives to IG in Australia, but it’s one of the most reputable with reasonable fees. If your investing strategy centres on forex and stocks, it’s a great one-stop platform regardless of your experience level.

If you only want to own stocks, or you want to trade using methods other than CFDs, IG may not be ideal.

IG made our list of the 10 best share trading platforms in Australia, but why not check out the rest to see how they stack up?  

Jody