The basic premise around FIRE is simple – when your net worth is 25X greater than your expenses, you’re officially retired.

The math is even simpler.

You can technically live off 4% of dividends from your portfolio forever. All you have to do is embrace minimalism, saving between 50-70% of your income for a decade or two.

Then you’re “free” from having to work, as long as you never withdraw more than 4% of your nest egg in a single year.

In reality, the FIRE strategy (like every strategy) has a cost – a set of constraints you choose, together with the opportunity cost of those constraints.

You’re betting that the eventual “freedom” will be worth the sacrifice. But as I’m about to show you, most of the time, the opposite is true.

But FIRE isn’t about finances. It’s about identity.

Tell me what you think about FIRE, and I’ll tell you what your parents told you about your potential – and how much you believe in yourself today. But I’m getting ahead of myself.

(Related: Pepperstone Full Review – Pros, Cons & Verdict).

1. The False Promise Of “Early Retirement”.

Early retirement, in the form most people think of it, is a recipe for misery.

If you’re dreaming of the day that you give your boss the middle finger, so you can spend the rest of your days happily playing tennis, binge-watching Netflix and ranting about the government on #auspol while you live in a small country town on $50,000 a year – I have news for you.

Because it is not an escape from work that you crave.

You’re seeking an escape from meaninglessness. And the best way to feel even more meaningless is to spend your days doing sweet F A.

2. Retirement Is The Wrong Goal (Because Work Isn’t The Enemy).

FIRE exploded in popularity not because it is a smart financial strategy – but because it offers lost people meaning.

What makes FIRE proponents feel good isn’t the proximity to retirement. It’s that they’ve accidentally discovered purposeful striving.

They usually discover FIRE while in a meaningless job that offers little agency – and no coherent story of progress and growth.

The second one – the story – is the most powerful.

People don’t want to wake up each day and repeat a set of tasks. They want to know what these tasks mean.

The easiest way to achieve this is to give people a simple cast of characters – and place them at the centre of a heroic struggle. FIRE does this exceptionally well.

Above: Five characters in any FIRE story. But you can use the same characters to sell anything to anyone.

This story has been used to sell everything from religious cults (“death to the infidels”) to organic nappies (“multinational corporations poison you with microplastics to keep you sick”), Disney stories (“may the Force be with you”) and political candidates (“evil billionaires are controlling society”).

Step into the story – and receive an instant identity upgrade.

You’re no longer someone stuck in a small life and a dead-end job. You’re an open-minded free thinker who has courageously unplugged themselves from the clutches of a corrupt mainstream ideology.

(Related: Will Australia Go Into A Recession In 2026?)

Your unsatisfying job isn’t a result of your bad choices. It’s the system’s fault! And you were right all along – you simply lacked the secret knowledge to explain why.

This is where the trouble starts to happen. The person believes they’re free.

In reality, they’ve traded one dogma for another – often a worse one. This happens everywhere:

Now, there’s nothing inherently wrong with seeing yourself as the hero of a larger story.

In fact, this instinct drives much of human progress. Professional athletes cast themselves against formidable opponents. Political parties fight for better policies.

Even the local cafe I’m writing this from is fighting a small – but noble – battle against the onslaught of mediocre, mass-produced beans.

A compelling “Hero’s Journey” story gives people direction – and a reason to endure discomfort. But the price you must pay becomes exponential when the story becomes too absolute.

And unfortunately, for FIRE to work, it needs to be reasonably extreme – or you won’t meet your retirement number early enough to actually retire early.

(Related: Best Stock Trading Apps In Australia).

3. Lifestyle Isn’t The Enemy (But One Of The Greatest Rewards).

There’s only one thing FIRE adherents love to demonise more than they demonise work. It’s demonising lifestyle.

They reduce “nice things” to vanity, shallow consumerism and status:

The person spending freely is always suspect: making poor financial decisions or compensating for something.

If lifestyle spending is morally suspect, then not being able to afford it isn’t a limitation – it’s a virtue. They’re not missing out – they’re rising above.

So they continue to feed their family a steady diet of carbs and $8-a-kilo Coles chicken – while pretending it’s as healthy as $35-a-kilo organic meat and veges.

They take the family away to experience the exotic thrills of Wollongong.

Meanwhile, those “superficial shallow wankers” are using their money to buy adventures that only money can buy:

Don’t get me wrong – not every experience has to be extravagant. I love the simple things, like camping with the family.

In fact, I’ve done more camping in the last decade than most Sydney families. Do you know what I’ve consistently discovered?

When camping with “the boyz”, it’s perfectly fine to rock up to your campsite in a clapped-out wagon and spend the next few hours setting up tents, sitting outside with all the bugs and the elements, then passing out on your BCF air mattress.

But when taking your wife and kids, you’re infinitely better off towing in a decent camper or caravan.

Not a dodgy one that takes hours to set up and leaks. A real one.

Like a Patriot X1 camper – or a Zone Peregrine caravan.

But FIRE devotees will never believe this – because it’s a threat to their entire belief system.

The two ideas are not compatible. Either:

If the second one is true, the entire moral framework collapses. And with it, the “great little saver” identity on top of it.

So the scrooges protect themselves the only way they can: by dismissing or avoiding the evidence.

The FIRE devotee never travels to destinations vastly prettier than their low-cost town, and therefore never risks discovering that there’s more to life.

Because if the evidence ever did land, the domino run would be catastrophic for their identity:

That’s the real reason FIRE devotees stigmatise lifestyle. They’re not embracing financial discipline – they’re embracing an anaesthetic.

Taking the moral high ground over “superficial people” is infinitely easier than facing the responsibility of building a career – and a life – worth funding.

4. The Success Of FIRE Proves Its Faulty Reasoning.

Nietzsche had a quote, “He who has a why to live can bear almost any how”.

Victor Frankl later used it to explain how purpose offered Nazi concentration camp prisoners a tool for surviving extreme suffering.

This is what FIRE proponents are tapping into.

In doing so, they’re creating a “job” they actually like.

Suddenly, they have a number to reach. A date to anticipate. A skill set to grow. A level of discipline to practice.

What they don’t realise is that they could achieve the same through work – by becoming better at sales, running projects or driving a forklift.

Anything.

Ironically, many achieve this by starting a FIRE blog, and abandoning the idea of “retirement” altogether.

(Yep, if you own a FIRE blog filled with affiliate links and ads, you’re not retired, Financial Samurai. You simply swapped one job for another).

I get it, bad bosses exist. Mindless jobs at stagnant companies with no future exist. I’ve been in those jobs.

You ended up in a dud job. I get it.

There’s no need to declare the system is corrupt and declare that you’re joining the FIRE movement.

You just need to take responsibility for the views and habits that brought you into this job, and start making different choices.

5. FIRE Compounds The Wrong Asset.

FIRE works by tapping into the magic of compounding.

“Hold on to that dollar”, the devotees tell you, “because in 20 years it will be worth $10.”

“Let those fools spend their money on conspicuous consumption. They don’t realise how much that dinner, suit, holiday, car or TV is costing them.”

It’s true that a lot of people live paycheck to paycheck – because they spend too much money on “keeping up with the Joneses”, or because they’re stuck on a hedonic treadmill.

They spend money to impress people – or to buy membership with a certain crowd.

It’s also true that FIRE offers people the ability to learn the essential skill of delayed gratification.

But the obsession with savings creates tunnel vision – because FIRE, at its core, is an accounting system. And like all accounting systems, it only counts what fits neatly on a spreadsheet.

FIRE tracks the price of everything you buy – but ignores the financial opportunity cost of everything you forgo.

Which matters, because things that compound faster than money are:

Money compounds at seven to ten per cent a year – if you’re lucky. These assets compound differently. They multiply each other.

Competence builds reputation. Reputation attracts relationships. Relationships attract opportunities that were never advertised.

Savings compound predictably and slowly.

Skills and relationships compound unpredictably and exponentially – because their payoffs aren’t capped at the combination of your burn rate and market returns.

Extreme frugality has a price. When you spend your most productive decades optimising the bottom line of a small life, you choose not to build the skills for growing a big one.

You’re becoming a world-class expert at managing a shrunk pie.

For example, the decision to move from a large city centre into a low-cost regional area looks like a genius commercial move on your FIRE spreadsheet.

You will save $500K over the next 10 years – and “retire” 5 years earlier with that one decision alone.

But you’ll never know what could have happened if you stayed. What is the real cost of that conference you won’t attend, that relationship you won’t build, that business lesson you won’t learn?

That’s the part FIRE has little to say about.

Stick to the path with discipline – and there’s a good chance you’ll end up with a few million in the bank by your late 40s, a paid-off house (nowhere exciting), and decades of unstructured time to fill with pleasant pursuits.

If that’s the life you want, FIRE is arguably the most reliable route to it ever devised.

But notice what its mechanics can and can’t do.

Your burn rate can only go so low before additional savings make life exponentially harder to live.

And the capital markets pay what they pay – minus inflation (which, let me remind you, peaked at 7.8% in 2022, and has been well above the target range since).

FIRE doesn’t just predict a moderate result. It is designed to produce one.

Follow the formula and, barring an outlier disaster or stroke of luck, your destination is some version of “comfortable”.

So the real decision FIRE forces you to make isn’t “should I move my family to Wagga Wagga?”

It’s whether you want the safety of a moderate win – or the adventure of becoming a person capable of building something extraordinary:

The second path takes the view that your wealth is a downstream function of the value you create in the world.

You set your sights to build something worthwhile, and taking a chunk of it as your profit. Your career – or your business – becomes the vehicle for achieving this purpose.

For some, that looks like a nightmare. For others, it looks like the adventure of a lifetime.

Because here’s the catch: if you’re honest with yourself, you’ll quickly realise you’re not yet sufficient for the goal.

So growth becomes your North Star. Becoming more capable and commercially valuable. Expanding your earning power. Building domain expertise.

These are preferences – not exclusive, airtight categories.

People on the FIRE journey will likely develop skills (e.g., some choose to work part-time as tennis coaches). Meanwhile, people obsessed with building will need to learn financial discipline.

But in my experience, people have a strong preference towards one or the other as a central organising principle in their life.

Some people want to protect a smaller pie. Others want to learn how to bake a much larger pie:

Same salad. Two completely different lives.

6. Fire Promises Freedom – But Delivers Comfort.

The headline promise of FIRE is “complete freedom”.

No boss. No alarm. No need to swap your time for money. Do whatever you want, whenever you want.

But that is disingenuous. FIRE doesn’t remove constraints – it swaps one set for another. You may no longer depend on a salary, and your boss’ moods. But you now depend on the assumption inside your spreadsheet.

Think about what the 4% rule actually is. It’s a budget – locked in at the age of 40, that you can never exceed as long as you live. There’s a huge difference between:

That’s not freedom. It is existence firmly inside one’s comfort zone.

And for me at least, that’s a cage that lets me observe the outside world, but never step my foot in it.

It means being able to fund an expensive ambition, help someone you love, move somewhere extraordinary or absorb a major setback – without first asking whether it violates your withdrawal rate.

And unlike a boss, you can’t renegotiate with it or quit. The number is the number.

You can only pick up some extra work. But that no longer makes you “retired early”.

It makes you a relatively young person who chooses to work part-time – in yet another dead-end job.

7. FIRE Devotees Are Ungrateful Freeloaders.

Most people think of Medicare and other forms of social support as “government help”. But that’s a euphemism that hides the truth.

Nobody in government is helping you with their own money.

A more honest description is: “socialised safety nets, paid overwhelmingly by the most productive members of society through redistributive taxation.”

Consider a typical FIRE practitioner. Let’s say they “retire” at the age of 40.

Their effective tax contributions stop at this point – except perhaps a trickle of CGT and income tax they earn through part-time work.

Their usage of the system, however, doesn’t retire with them.

For another four decades (if they live until the statistical Australian life expectancy of ~80), they will continue benefiting from:

The most expensive decades of a citizen’s life, healthcare-wise, are the ones at the end.

Yes, they paid tax during their working years. (But let’s call a spade a spade – it likely wasn’t much). And so does everyone.

Is it OK to front-load 15 years of contributions, and then draw on the shared pool for 40?

But we live in a society that encourages individual choices, so FIRE practitioners are free to make the choices they want. They’re allowed to exit at halftime – while the rest of the team carries the ball.

That is part of our social contract.

And look – there’s an honest attitude for this position. It goes:

If FIRE practitioners talked like that, I would not have written this section. Living modestly off a shared system while acknowledging the deal is a defensible way to live.

But that’s not the tone, is it?

Spend ten minutes on Reddit FIRE threads, and you’ll find the opposite of gratitude.

You’ll find gloating.

The people still working – still earning, still paying the top marginal rates that fund the whole system – aren’t described as the system’s benefactors.

The typical FIRE devotee sits inside a small life, propped up by your taxes, sneering at you for continuing to pay them.

That’s the contradiction.

If you decide to practice FIRE, go right ahead. But don’t scoff at the system that you would not survive a day without. Be humble, collect your free money or use your subsidised service, and retreat back to your comfort zone.

If you want out – really out – then be consistent – and opt out entirely: the Medicare card, the subsidised scripts, the roads, the police, the education for your kids – the lot.

Nobody ever does.

Because the whole FIRE strategy only works if the “suckers” keep the lights on.

Steven

Pepperstone is easy to like. Born and bred in Melbourne, it’s one of Australia’s most trusted, ASIC-regulated CFD brokers.

Active traders love it because it covers all bases for intraday and longer-timeframe trading.

You get several trading platforms (including MT4/5 and good ol’ cTrader), more tradable assets than you can poke a candlestick at, enviably deep liquidity, and a strong reputation for execution speed.

It offers competitive spreads, but they’re not always the tightest.

(Related: Best Forex Exchanges In Australia in 2026).

Best Features Of Pepperstone:

Above: The central Pepperstone dashboard places live and demo trading accounts at your fingertips.

Main Downsides Of Pepperstone:

Pepperstone At A Glance.

Is Pepperstone Good For Beginners?

Beginner-friendly is an apt description for Pepperstone.

Ticks in the ‘pros’ column for newbies:

A simpler pricing structure on the Standard account does mean the spreads are wider – but they’re still low at around 0.6-1.0 pips.

If you’re happy to pay commissions, the platform also offers a Razor account with raw spreads, from as low as 0.0 on some assets. But it’s not as easy to work out costs (more on that below).

Even more valuable than being easy-to-use for beginners – Pepperstone has the depth and resources needed to help you transition from a person who’s curious about trading, to a person who confidently trades.

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

Pepperstone’s strengths for traders honing their skills include:

Risk management tools help beginners minimise slippage, including stop-loss orders, take-profit orders, and trailing stops.

Here’s something Pepperstone does well that’s reassuring for people still finding their feet in trading – its customer support is consistently good.

One of the biggest ‘cons’ is that Pepperstone only lets you trade using CFDs. It is unapologetically a dedicated CFD trading platfrom.

If you want to invest in underlying assets, you’ll need an account with a full-service platform like eToro or Interactive Brokers.

They can tempt inexperienced traders to take silly risks, especially if you don’t fully understand leverage and trading on margin. 

But that’s not unique to Pepperstone – and like all ASIC-regulated CFD brokers, the platform provides negative balance protection (you can’t lose more than your initial capital).

(Related: CMC Markets Review: Pros, Cons & Verdict).

Is Pepperstone Good For Experienced Traders?

Pepperstone is great for experienced CFD traders with strategies built around medium-risk trades on common assets like major FX pairs, leading indices and ETFs, and blue-chip shares.

Above: Pepperstone’s cTrader looks like, well … cTrader. Reminds me of an Atari computer I owned in 1990s.

Access to best-in-class trading platforms like MetaTrader and cTrader is an obvious plus for experienced traders who’ve already built up their skills in technical analysis.

If you’re using leverage sparingly on high-conviction trades, ASIC-imposed leverage limits probably won’t matter (After all, few traders become ‘experienced’ without at least one painful leveraged trade wipeout).

Pepperstone processes orders fast, unfailingly. If you’re a MetaTrader 4 or 5 user especially, you’ll be impressed by how smoothly it runs.

The platform’s MT4 mobile app was ranked the best performer – with 77ms execution speeds – in a recent side-by-side test of popular, mobile-optimised brokers licensed by ASIC.

Above and beyond MT4/5’s capabilities, Pepperstone provides 28 additional tools, EAs and indicators and I guarantee you’ll have fun taking a squiz.

You can create and name different ‘templates’ for specific settings – e.g., trade size and SL or TP distances – that can be selected and executed with a click.

Volume-based discounts also makes Pepperstone ideal for experienced forex traders placing a large number of orders or using algorithmic trading.

(Different trading volume levels apply for commodities and indexes.)

Pepperstone doesn’t have the largest range of products, but it has almost everything you’d want: over 90 margin FX pairs, shares, ETFs, indices, commodities, and a few leading cryptos.

And you get the freedom to trade in different currencies — fund your Razor account in USD, EUR, GBP, AUD, SGD and HKD.

Veteran traders know reliability is nothing to sneeze at. 

Trading Fees, Spreads, And Commissions Charged By Pepperstone.

Pepperstone charges spreads and commissions, depending on the account type:

The average raw spread on major currency pairs ranges from 0.1 – 0.5 pips. In terms of FX margin trade commissions, it’s a bit shambolic.

Pepperstone uses current foreign exchange conversion rates if it applies charges that aren’t in your account’s base currency.

Overnight Funding (Swap Rates).

Positions held ‘overnight’ will attract rollover interest rates, which vary depending on what you’re trading. Pepperstone’s rollover coincides with the New York market’s close (5pm NY time).

Here’s how Pepperstone’s rollovers are affected by weekends and holidays:

Pepperstone’s Conditions On Deposits And Withdrawals.

Here’s what you need to know about depositing and withdrawing your money from Pepperstone:

The fastest way to fund your account if you’re in a hurry to trade is paying by debit or credit card.

Also, it’s important to withdraw funds via the same method you used to deposit them. Money usually lands in your account within two business days.

Is Pepperstone A Legitimate Trading Platform in Australia?

Pepperstone is a legitimate Australian-bred broker and you’ll be covered by Australian regulatory protections if you choose to trade on its platform.

Headquartered in Melbourne, where it was first launched back in 2010, Pepperstone’s Australian office is registered with the Australian Securities & Investments Commission (ASIC).

As a global company, it also has 10 offices worldwide and regulated operations in Australia, the Bahamas, Cyprus, United Arab Emirates, Germany, Kenya and the UK. 

CEO Tamas Szabo has a long track record growing successful CFD and FX platforms, having spent 19 years with IG Group, including holding the position of its Asia-Pacific chief executive.

Szabo was recruited as the global CEO of Pepperstone in 2017, and is also on the board of its UK operation.

The company is privately owned. Its original founders, Owen Kerr and Joe Davenport – who still own 40% of the company— remain directors on Pepperstone’s board.

How Trustworthy Is Pepperstone? Is your Money Safe?

Pepperstone takes security of customer funds seriously.

If Pepperstone goes under, your money is safe.

What about platform security? You can activate two-factor authentication (2FA) to protect your Pepperstone account login credentials.

The platform encourages people to report possible security vulnerabilities to help it keep its systems secure.

Alternatives To Pepperstone?

Pepperstone is a quality choice for a forex broker, but you might be looking for a competitor with better spreads or access to different markets or assets.

Check out these guides to help you decide the best FX or CFD broker for you:

Common Questions About Pepperstone.

These are some of the common questions that arise when investors start considering Pepperstone in Australia:

Can I Use Pepperstone In Australia?

Yes, Pepperstone is available to Australian investors. Pepperstone was founded in Melbourne, and while it’s now a global brokerage, its head office remains in Australia. It’s registered as an Australian company and is regulated by ASIC under the Australian Financial Services Licence No.414530.

What Is The Minimum Deposit For Pepperstone?

If you deposit funds via a bank transfer, PayID or BPAY there’s no minimum deposit. For all other available payment methods, the minimum deposit is $10.

What Is The Maximum Leverage On Pepperstone Trades In Australia?

The maximum leverage available on Pepperstone for regular retail traders is 30:1 for major FX pairs. If you’re approved for a Pro account you can access leverage up to 1:500.

The full list of leverage limits available on Pepperstone’s Standard and Razor accounts is:

(Related: What Aussie CFD Traders Should Know About ASIC Leverage Restrictions.)

Is It Easy To Withdraw Money From Pepperstone?

Yes, it’s easy to get your funds out of Pepperstone. Even if you’re playing with larger sums, you won’t have issues withdrawing from the platform. 

There’s no upper limit on withdrawals. However, you’ll need to maintain enough balance to cover open positions, which means you can only withdraw up to 90% of your free margin.

Some platforms you can withdraw to – such as Neteller, Skrill and PayPal – have maximum limits on transactions, so you may need to move large amounts in lots.

Can I Transfer My Funds To Pepperstone From Another Broker?

Yes, you can move account balances to Pepperstone from another Australian-based broker.

You’ll need to provide the other broker with Pepperstone’s bank details and your Pepperstone account details – these can be found in your secure client area.

Is Pepperstone The Best Forex And CFD Broker For You?

For Australian day traders, swing traders, scalpers and position traders comfortable using CFDs and leverage, Pepperstone is one of the most dependable platforms available.

You can trust your trades will work. You can trust that the spreads and commissions will be competitive.

You can trust there’s no hidden fees beyond the cost of your trades. You can trust you’ll get useful guidance if you hit a snag.

I don’t know what more you need to start trading and still sleep well at night?

Jody

ASX stock gains have been moderate, with most ASX200 indexes recording 10-15% over the past few years. The NASDAQ, meanwhile, has been ripping along (gaining over 30% across the same timespan), tempting many Aussies to buy US shares.

Unfortunately, many Australians feel intimidated by the prospect of buying US stocks.

I was the same.

This is why I created this quickstart guide, based on my own personal experience.

My portfolio is roughly 80% US stocks, and I have exposure to most Magnificent Seven megacaps (although their momentum died down recently – sadface), so I have a considerable amount of exposure to the US share market.

Here’s the process I follow to buy US stocks – I hope it helps you save time.

1. Understand How US Share Ownership Works.

The legalities around owning US shares differ from those for Australian-listed stocks.

Australian shares are usually traded under the CHESS sponsorship arrangement.

Your purchases are recorded directly on the ASX – in your name.

US-listed shares, in contrast, are held under a custodial brokerage arrangement.

(Related: How To Avoid Brokerage Fees When Buying Shares).

Rather than being registered in your own name, the shares are held by a custodian (i.e., the share trading platform) on your behalf.

The platform is the legal owner, but you retain full beneficial ownership.

Under this model, you:

2. Don’t Forget About Currency Risk.

Many would-be investors don’t know about it – and get caught offguard.

Let me illustrate the risk with my own personal example.

A few years passed.

Microsoft CEO Satya Nadella made a few great decisions and my MSFT stock gained 25%. I was up by US$1,500 – and my total MSFT position was now US$7,500.

I was feeling great about myself.

Should I spend it on a new Longines watch that I always wanted? Or maybe surprise my wife with a holiday?

I logged back into my share trading platform and closed my entire US$7,500 MSFT position.

A couple of days later, the money hit my Australian bank account.

I looked at the number, but couldn’t believe it.

AU$9,950.

What the hell?

How could I LOSE $50 after investing my money for several years, and gaining 25%?

I wasn’t aware that geopolitical turmoil had weakened the USD against the AUD, changing the exchange rate from 0.61 to 0.75.

By the time I paid the spreads and brokerage fees, I made a net loss.

Investors avoid outcomes like mine by timing not only the entries and exits from their US share positions, but also their subsequent conversions from USD to AUD.

Although the AUD/USD currency pair is relatively stable, it has experienced several volatile moves over the past 15 years.

3. Learn Tax Rules For US Shares.

Investing in US stocks means additional tax responsibilities:

3. Choose The Best Trading Platform For US Shares.

If you’re like most people, you’ll start by checking if your existing ASX brokerage offers international share trading.

Australian banks charge a combination of an FX fee and a brokerage. This is not unusual, but their fees tend to be um, ambitious.

CBA, for example, charges 0.55% currency conversion fee and 0.12% brokerage fee.

In practical terms, investing AU$10,000 into the US market with Commsec means getting a $67 haircut on the way in:

I became obsessed with finding the best share trading platform, so I wrote a few comprehensive guides on this topic:

4. Set Up Your Share Trading Account Correctly.

Get ready for the mind-numbing part. But you already knew it was coming, right?

Signing up to trading platforms is no longer as painful as a dentist visit, but you’ll still need to satisfy their KYC and anti-money-laundering requirements.

Here’s what you’ll need:

5. Don’t Forget About Weird Trading Times.

Once your brokerage account is set up, you’re free to buy US shares.

The catch is that the US market is open while Australia is sleeping.Specifically:

Trades placed outside these hours will queue and execute when the US market opens.

Yes, this can be frustrating. Some investors choose to stay up and place trades during live market hours, so they get the real-time share price.

But you also have the option to enter trades during pre- and post-market hours. Basically, it means you can go to bed and let the platfom execute the trades for you.

eToro, for example, will let you place bets any time between 4am on Monday and 8pm on Friday Eastern Time (ET).

But as with everything in life, this feature comes with a few downsides. Namely:

I’m a bit of a control freak (in all domains of life – not just investing), so when I need to buy a US stock, I typically stay up until midnight – and do it manually. No biggie.

Ready to trade?

If you’ve decided that getting exposure to the US market is the right move, fund your account, convert AUD to US (you may need to wait for a day for the funds to arrive), search for the ticker symbol of the asset you want to purchase, and confirm the trade.

Steven

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

Economies expand and contract in a fluctuating pattern known as the business cycle. When we see growth in a country’s goods and services outputs (its gross domestic product – or GDP), we view it as a good sign of flourishing economic activity.

But endless growth is unsustainable.

A healthy economy is cyclical. In some months, the GDP growth rate will be lower. And sometimes, growth will stop altogether, reversing course into negative.

A prolonged decline in GDP raises fears of recession — i.e., a widespread economic downturn that lasts many months.

Because the impacts of a recession are broad, it’s important to understand what happens – and how a recession could affect you.

(Related: How To Buy CBA Shares).

What Is A Recession?

An economy is often described in the media as having entered a ‘technical recession’ when negative GDP growth continues for a period of six months, or two quarters.

Slowdowns and recessions are usually caused by external or financial shocks, or the monetary or fiscal policies a country applies. For instance:

Above: Australia has experienced a number of economic declines throughout its history.

If There’s No Official Definition, When Do We Worry?

Two quarters of negative growth is not the definition used by all governments and economists to evaluate economic health.

A ‘technical recession’ can be triggered without rising jobless rates or serious risk of a persistent slowdown.

Above: Australia’s GDP per capita has been hovering near zero since 2024.

For instance, Australia was widely considered to be in a ‘per capita recession’ since the start of 2026:

Essentially, growth is returning – slowly – after the slowest few years on record since ’91.

Above: GDP is not exactly staging a strong rebound. In typical Australian style, it’s recovering at a modest pace.

What Happens To The Economy During A Recession?

It’s understandable to worry about recessions because sluggish growth and more people out of work can lead to:

Mass layoffs, bankruptcies and business failures are especially damaging — people’s livelihoods are deeply affected and it hurts the economy’s capacity to regain momentum.

AMP’s chief economist Shane Oliver points out that Australia has avoided recessions since the 1990s by adopting smart measures.

These include:

Australian economist Michael Blythe said that because public spending can moderate the impact of a downturn, his preferred measure of the state of the business cycle is private spending.

He said a typical recession involves peak-to-trough falls in private spending of 1-4%.

“Outright falls in private spending clearly mark the five major recessions of the early 1960s, the mid 1970s, early 1980s, the early 1990s and 2020.” — Michael Blythe, economist

What Happened During The GFC?

The so-called ‘Great Recession’ that followed the GFC saw:

Australia fared much better. Our GDP growth didn’t decline for two quarters, but the unemployment rate rose from around 4% to 5.75% between early 2008 to mid 2009.

Analysis from the RBA shows there was a longer-than-usual lag between when the GFC downturn started and when unemployment started rising, reflecting tightness in the labour market.

Many employers looked to hold on to talent as they knew they’d be hard to replace.

(Related: 7 Best Crypto Exchanges In Australia).

What Happened During The COVID Pandemic?

The COVID pandemic that swept the globe starting in late 2019 resulted in a series of lockdowns that forced a pause in business activity in many countries.

Here’s what happened that year:

By October 2020, there were some signs of recovery and Q3 GDP results for 2020 revealed the Australian economy had grown by 3.3%.

The United States, the United Kingdom, Japan, Germany, France, Canada and Italy all saw negative growth in the first two quarters of 2020.

The need to restart economies after the initial waves of the pandemic resulted in low interest rates and significant government stimulus being delivered.

Which led to more consumer spending, and saw recessions lift.

Above: The US economy expanded by 33.1% in the third quarter of 2020, the largest quarterly growth rate recorded in the US.

COVID was a uniquely disruptive event, rather than a part of the usual business cycle — and its effects are still being felt through persistent inflationary pressure.

The US economy saw two quarters of negative GDP growth when the pandemic emerged, but the US Bureau of Economic Research (NBER) found that America’s economy experienced a recession of just two months in 2020.

Capital Group U.S. economist Darrell Spence said the US’ 2020 downturn was described as a recession for lack of a better word.

Are There Upsides To A Recession?

There may be silver linings.

Contractions in the business cycle can be deflationary — businesses might lower prices or offer more special deals to try to bolster demand.

The Reserve Bank of Australia (RBA) is also more likely to cut the official cash rate to stimulate economic activity.

As banks lower their rates, it becomes cheaper to borrow, which encourages investment and spending.

While you’d expect asset prices to fall in a recession, history tells us that property prices don’t necessarily crash.

House prices actually rose in many parts of Australia during the worst months of the early 90s recession, but they did fall during the GFC.

How Good Are We At Predicting Recessions?

It’s incredibly difficult to predict how the economy will behave.

Recession concerns increased in both the US and Australia in 2023-24, but both economies avoided a technical recession.

In December 2023 — when fears of a US recession were still very much alive — head of global aggregate bonds at J.P Morgan Asset Management, Myles Bradshaw said it was hard to foresee the timing of an economic cycle’s contraction.

Naturally, this doesn’t stop economists and others from speculating.

Most predictions are based on mathematical modelling and patterns from historical data.

They’ll look at things like: data about the labour market, retail sales, consumer spending and household income; consumer and business sentiment surveys; and the performance of housing and financial markets.

In addition, indicators commonly used to help predict recessions include:

Some less conventional ways that people take stock of the economy include:

Indicators aren’t perfect, simply a guide to how the business cycle is unfolding and whether a recession is more or less likely.

How Long Do Recessions Last And What Happens Afterwards?

Recessions vary in length and impact depending on their breadth and depth. If the recession is mild and short-lived, the economy may rebound quickly.

Looking at 122 recessions in 21 advanced economies in the period between 1960-2007, the International Monetary Fund found that they typically last about one year and result in a 2% decline in GDP.

While a recession ends when growth picks up again, that doesn’t mean an economy’s troubles disappear.

The World Economic Forum gives the example of the global Great Recession of 2008, where quantitative easing was initiated to pump trillions into world economies:

Can You Recession-Proof Yourself?

Avoiding financial risk and panicked decisions is wise during a recession.

You may seek to rebalance your portfolio to lower-risk assets like government bonds and gold, but speak with a financial adviser before you do so.

Markets are likely to rebound eventually, so inaction may be the right approach.

What poses a risk to you will depend on your current financial situation and how much risk you can handle without losing sleep.

Your vulnerability during a recession is largely tied to your income-generating potential. Consider how you’ll fare if you lose your job or your business revenue declines?

Another way to think about recession-proofing yourself is to invest in skills and innovation capacity — so that you’re positioned to pivot or capitalise on the most in-demand areas of the economy or job market, regardless of how it’s travelling.

Jody

On the surface, the euro looks unstoppable. Against the Australian dollar, the trend has been clear – and uncomfortable for AUD holders.

As of August 2026, €100 costs roughly $164 AUD, putting the exchange rate near €0.61, up from around €0.58 earlier in the year.

To the casual observer, that looks like a simple, familiar story.

The Aussie dollar is weakening against another major currency – again.

Tip: Zoom out for better historical context of AUD/EUR performance.

And with talk of a European economic recovery circulating for end of 2026, many forecasts predict the slide is far from over.

But exchange rates don’t tell the full story.

Slower, deeper forces beneath the surface are shaping AUD/EUR’s future.

(Related: 7 Lies FIRE Movement Tells About Freedom).

First, growth is compounding faster in Australia, creating a tailwind for AUD relative to EUR:

Second, the public debt risk picture looks more ominous in Europe:

When you examine those forces, the euro’s future looks far less safe than the numbers suggest.

Here’s what almost nobody is talking about in the AUD vs EUR outlook for 2026.

2025 Was Brutal For AUD vs EUR – Here’s Why.

The reversal of the so-called ‘Trump trade’ played havoc, causing the AUD’s value to slip substantially.

Soft economic data out of the US – combined with President Trump’s announcement in March of 2025 of tariffs to be imposed on Canada, China and Mexico – saw investor sentiment switch.

US stock markets dipped, and the euro suddenly became a lot more attractive to forex traders.

Trade tensions and market volatility escalated further in April, with new, large tariffs threats, including against the European Union.

But amidst stock market tumbles and trade negotiations, the EUR continued its strength against the greenback.

(Largely due to a lack of confidence in the American currency).

In July, the Governor of the Bank of Finland, Olli Rehn, described the rebalancing of exchange rates as a “historic opportunity to elevate the euro into a trusted global anchor.”

On the other hand, traders dumped the Aussie.

‘Liberation Day’ tariff turmoil saw the AUD drop to below US$0.60, and plummet to just €0.54. A five-year low.

While the Aussie has rebounded somewhat since then, it’s still down against the euro.

What Experts Are Warning About AUD vs EUR.

The AUD to euro forecast from Westpac sees the currency pair softening a bit by 2027.

Above: By start of 2027, Westpac thinks AUD/EUR will soften to €0.59.

An outlook from OFX published on 8th July predicted the AUD/EUR pair would trade within a range of €0.6036 – 0.6082 for the next few months.

Its analysts said markets could favour the euro in the coming months if signs of improvement in the German manufacturing sector continue into 2026.

A continuation of the US Federal Reserve’s wait-and-see approach in 2026 is also expected to weaken the US dollar.

Whereas the European Central Bank (ECB) looks set to hold or potentially start lifting its policy rates in 2026.

In addition to a more dovish Fed, the US economy doesn’t stack up as well against Europe’s fiscal agenda in coming years, according to Mahjabeen Zaman, ANZ’s head of FX research.

Of course, the rate differential with the US should also help boost the Aussie against the greenback – but it’s less likely to benefit the AUD against the EUR.

ING FX analysts are bullish on the EUR/USD rising to €1.20 by end-2026 , but it depends heavily on the Fed’s next moves:

The strength of the euro area economy will also be a deciding factor.

What Is The Impact Of Monetary Policy On The AUD/EUR?

Although inflation in the eurozone isn’t quite within target – at 2.1% compared to its 2% goal – 93% of economists polled by Reuters in November 2025 think the ECB will keep rates on hold throughout 2026.

But more policy easing is likely in the US.

Even with the differential in the US’ favour, its easing agenda and shaky economic conditions, compared to a stabilising euro area, could lend weight to appreciation of the euro.

But demand for the AUD against the euro could improve given the Reserve Bank of Australia (RBA) looks to be shifting back into hawkish territory.

A widening of the interest rate differential between Australia and the eurozone could bolster the AUD/EUR cross pair. 

Will The AUD Get Stronger In Late 2026?

The AUD/EUR pair’s exchange rate is heavily influenced by how both currencies perform relative to the US dollar – a safe haven currency for investors.

But a major headwind for the Australian dollar in 2026 is slowing demand for our commodities, in large part due to China’s property sector downturn and slump in consumer demand.

Another risk comes from US-China trade relations.

Tensions ratcheted up again as President Trump met with President Xi in October, with Xi determined to push back on tariffs against China.

However, a deal was reached.

And Westpac’s Elliot Clarke said the Chinese economy was “well insulated from the US threats”.

He argues the key downside risk is household demand, which China’s latest 5-Year plan does aim to boost.

Historical Performance Of The AUD/EUR.

The euro took a beating in 2022, depreciating against the US dollar in one of its worst-performing years. At one point, it lost 16% of its value against the greenback.

In July 2022, the euro lost parity with the US dollar for the first time in 20 years — it’s historically been worth more than the dollar.

(Related: AUD to GBP: Expert Forecast).

Russia’s invasion of Ukraine naturally affected economies across the Eurozone due to supply chain disruptions, increased energy costs and increased fear and doubt among consumers.

Not coincidentally, it was the euro area’s worst year of inflation – reaching 10.6% in October 2022.

But the AUD to euro pairing declined again, then moved into a period of stability.

Final Verdict On AUD To Euro Outlook.

Forecasts are for the AUD/EUR to lift slightly to sit in the range of €0.59- €0.61 in 2026 – meaning one euro is worth around $1.64 Australian dollars.

A widening interest rate differential between Australian and European central banks could increase demand for the Aussie relative to the euro, but the impact may be minimal.

The AUD/EUR exchange rate also rests largely on the policies, growth prospects and political tensions that emerge out of the US, Europe and China.

Jody

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