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

The Magnificent 7 (Mag7) is the moniker given to a collection of influential companies on the US stock market that includes Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla.

The Mag7 collectively generated a roughly 18% return in FY2025 – a disappointment when compared with the 75% return it generated the year before.

Above: Magnificent 7’s volatile FY’25 journey.

But the more interesting story is not one of growth, but of the bipolar personality Mag7 embraced on the way there.

And while Mag7 endured bipolar swings (largely triggered by Trump’s policy announcements), the S&P did what it does best – smooth out the bumps to offer a less dramatic, yet satisfying, result.

Above: The typical S&P investor achieved the same result, but with fewer heart palpitations.

But the 18% figure is a distraction – because it’s an average figure – and averages are excellent at obscuring the true story.

The days of all 7 companies in this portfolio marching forward in unison appear to be over – at least for now.

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

The playing field has split, with some straggling (Meta losing 30%), some plateauing (Microsoft, NVIDIA and Tesla failing to show meaningful growth) and some continuing to skyrocket.

Google, the darling of the group, recorded an eye-watering 80% rise – despite being caught flat-footed in the race for AI search domination a year earlier.

Magnificent 7’s Downside Risks Have Grown.

The phrase ‘Magnificent 7’ was coined in 2023 by Bank of America analyst Michael Hartnett, based on the dominance and extraordinary surge in the Mag7’s share prices.

Above: Growing divergence between gains made across the Magnificent 7. Zoom in to see performance across shorter timelines.

That year saw gains of over 200% by Nvidia, over 190% by Meta, and over 100% by Tesla.

But those gains seem like ancient history in 2026 – with investors regularly selling stocks due to:

Year-to-date in 2026, most Mag7 stocks are stagnant, with only Google and Amazon showing double-digit growth.

(Related: Best Copy Trading Platforms In Australia).

Meta is the biggest loser of the year so far, with markets punishing Mark Zuckerberg for a failed Metaverse pivot, and frustration growing over the company’s AI spending plans.

You can learn more from our deep dives into Nvidia, Microsoft, Tesla and Apple.

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

The $1T CAPEX Is Struggling To Show ROI.

Much of the hype surrounding the Magnificent 7 hinges on the idea that massive investments in datacentres and frontier models will eventually be recouped through the sale of AI tokens at scale.

This is a seductive idea, fuelled by out-of-this-world revenues of frontier models, with Anthropic alone adding $550 of ARR (Annual Recurring Revenue) every single day.

Curiously, the company’s revenue ladder looks more like an infection tracker near Wuhan, rather than the accounting ledger of a legitimate business:

This trend is about to clash head-on with the newly found fiscal conservatism amongst company CFOs and CEOs.

Rather than continuing with the frenzied free-for-all that was AI adoption in 2025, business leaders are cracking down. Bloomberg recently reported that the Tokenmaxxing era is dead after 68% of companies overspent their AI budgets last year.

Media’s obsession with the Mag7 is waning, too.

Just like the FAANG narrative captured imaginations back in 2018 and slowly died, the Mag7 appears to be following the same trajectory.

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

Long-Term Success Of Mag7 Looking Shaky.

Belief in the transformative power of AI-enabled apps and devices underpins much of the frothiness we’re observing in the Magnificent 7 stocks.

However, the technology is still nascent, with only 17% of companies deploying agentic systems – and almost none reporting margin expansion at any meaningful scale.

Gartner’s hype cycle for agentic AI in 2026 indicates that we’re past the so-called ‘Peak of inflated expectations’ — which naturally leads into ‘The trough of disillusionment’.

Above: The AI race has fractured, with agentic profiles distributed along the adoption curve.

This is a particular risk for Nvidia, whose chips are in demand by many of the other Mag7 members – but it is most vulnerable to cascading losses, should AI’s lofty promises fail to materialise.

At the core of the risk is a series of interlinked, aggressive deals between the chipmaker and AI startups, which have helped support the development of new models and infrastructure buildouts.

For example, earlier this month Nvidia announced a $5B investment into Safe Superintelligence, the safety-focused AI startup co-founded by former OpenAI chief scientist Ilya Sutskever.

But Nvidia is also a significant backer of xAI (now SpaceX, Mistral, Anthropic and OpenAI) – all of which use the money to buy more Nvidia chips.

These “circular deals” worry investors because they can skew incentives and lead to bad decisions.

How to Buy Mag 7 Stocks In Australia.

You can use a full-service stockbroking firm or an online stockbroking app to buy US technology stocks from Australia.

But first, be aware of the differences between becoming a shareholder in a US-based company compared to investing on the Australian Securities Exchange (ASX), such as:

To buy Magnificent 7 stocks now, follow these steps:

1. Ensure Mag7 Stocks Match Your Investing Plan.

Buying any stock without an understanding of its purpose within your portfolio is unwise.

You need a plan for how you’ll deliver on your financial goals — which should be underpinned by clarity on your investing timeframe, your appetite for risk, and your ethical preferences.

(Related: Best Cryptocurrency Exchanges In Australia).

Picking the best growth stocks or ‘the next big thing’ is also notoriously difficult. That’s why passive investing in broad-based index funds has seen such a strong rise in popularity among retail investors.

With an index-based fund or ETF, you don’t need to pick winners—you gain from long-term rise in market values across a diversified basket of assets that are regularly rebalanced.

Speaking to a professional financial adviser can increase your confidence in making a decision about investing in Mag7 stocks or funds/ETFs that hold them. 

2. Choose A Great Stockbroking Platform.

The platform you use does matter, as they vary significantly in terms of pricing models, available markets/products, usability and feature sets.

Some apps are clearly designed for experienced traders with robust in-built analytics and broad trading options — while others simplify stock investing at a low cost. To buy Mag7 stocks, you’ll need a share trading platform with access to the NASDAQ stock exchange. 

We covered the pros and cons of 10 of the best share trading apps in Australia.

Look for ASIC-registered brokers to be safe. You can find the app’s Australian Financial Services (AFS) Licence number on their website, and verify it via ASIC Connect.

The process to sign-up for an account includes some additional KYC (Know Your Customer) details. You’ll be requested to share.

3. Add Money And Create An Order.

Once you’ve got an account set-up, purchase your stocks by taking these steps:

Mag7: A Wise Investment Right Now?

Traditional valuation metrics haven’t meant much when it comes to how investors have approached Magnificent 7 stocks in recent years, but caution may be creeping in.

Some analysts warn the Mag7 stocks are due to drop in value, and others say we haven’t yet seen prices peak.

If you’re investing for long-term gains, say to fund retirement in 10-20 years—consider how confident you are that the Mag7 will still dominate by then and deliver a solid return?

Jody

As one of Australia’s oldest and most prosperous banks — founded by the government in 1911 and privatised in the 90s — Commonwealth Bank shares are considered a blue-chip investment.

But is now the time to add Commbank shares to your portfolio?

Let me tell you about the stock’s recent price fluctuations – and give you a step-by-step guide on how to open a CBA position.

Above: CBA stock has beaten the All Ordinaries index over the past 5 years, and the S&P500. Zoom out for better historical context.

How Has CBA Stock Performed Recently?

Commbank has been a public company for more than 30 years. It was first listed on the ASX in April 1991 under the ticker CBA, and shares were issued at AU$5.40 per share.

As I’m writing this, in August 2026, shares are valued at over $177. And back in 2025, CBA rose as high as $180 — an intraday record for the stock.

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

Mid 2025, CBA made history twice when its valuation rose above $300 billion:

Commbank is now in a race with BHP for the title of Australia’s largest company, with a market capitalisation of roughly AU$297 billion.

Market experts were quick to sound alarms about CBA — calling it overvalued and overpriced — but investors continued to pile in.

While a surging share price is positive news for current shareholders, it’s less clear whether the stock represents a good opportunity for new investors.

(Related: What Is CHESS Sponsorship?)

The rally has appeared to lose steam since the start of 2025. Most analysts are urging investors to exercise caution because:

The consensus among experts is that CBA is a ‘sell’ — average 12-month price targets are below the current share value, at around AU$123-$124.

Several pundits point out that institutions have been buying CBA stock, more so than retail investors — driven by inflows into passive index funds in recent years.

Chief investment officer of funds manager Allan Gray, Simon Mawhinney colourfully (and prophetically) said in back in 202 that he’d “rather put pins in his eyes” than buy CBA shares.

Mawhinney warned that the stock was due for period of underperformance and index investors were facing an “extremely concentrated” market.

CBA’s performance in 2026 so far suggests that his analysis was on point.

CBA Stock Performance Metrics.

Consider these vital metrics we derived from the ASX and Yahoo Finance about Commbank’s stock:

Frequently Asked Questions About CBA Shares.

Here are some facts every CBA investor should be aware of.

1. What ASX-Listed ETFs Hold CBA?

Popular exchange-traded funds (ETFs) listed on the Australian Securities Exchange (ASX) that include CBA shares in their holdings include:

(Related: How To Invest In Gold In Australia.)

2. Which Indices Is CBA Part Of?

Because it is Australia’s largest listed company, Commbank is included on major ASX indices used to benchmark share market performance, such as:

3. Does CBA Pay Dividends?

Commonwealth Bank pays cash dividends twice yearly, usually in March and September.

CBA offers fully franked dividends that entitle shareholders to receive tax credits/refunds that can reduce their payable income tax.

4. Has CBA Had A Stock Split?

Commbank has completed four stock splits in the past: in 1993, 1996 and two splits in 1999.

How To Buy CBA Shares In 3 Steps.

It’s easy to invest in CBA shares in Australia. You can do so via a full service stockbroking firm or an online share trading platform.

(Related: Best Copy Trading Platforms In Australia.)

1. Create A Solid Investing Plan.

Make sure that owning CBA shares right now aligns with your investing goals, risk tolerance and investing timeframe. You risk losing your capital anytime you invest — it’s risky.

2. Pick A Reliable Share Trading Platform.

Research is needed to find the ideal brokerage app, because they vary considerably in terms of their pricing structures, usability and in-built features.

If you’re new to investing, you might prioritise low fees over a platform with all the bells and whistles designed to help you research trades.

The best stockbroking apps in Australia are ASIC-registered brokers that protect your consumer rights.

Above: Buying CBA via the friendly interface of one of my favourite trading platforms, eToro.

You can find the app’s Australian Financial Services (AFS) Licence number on their website, and verify it via ASIC Connect.

The process to sign-up for an account includes some additional KYC (Know Your Customer) details.

You’ll be requested to share:

3. Add Funds And Execute Your Order.

From within your online brokerage account, you can now buy CBA shares as follows:

Will The CBA Share Price Keep Rising?

Commbank is due to release FY26 financial results in a few weeks, but if its half-year results are anything to go by, the numbers will be healthy.

Good news, really.

But markets may not necessarily respond well – just as they didn’t back in 2025, when $15 billion was wiped off the bank’s valuation following a strong earnings release.

(Related: How To Buy US Shares In Australia – Without Being Ripped Off).

Back then, Jarden analyst Matthew Wilson explained that while the result was “OK”, Commbank’s “exalted” valuation meant it was susceptible to falling short of market expectations.

Australia’s stagnant real estate market isn’t helping CBA, either. Last month Australia saw the lowest auction clearance record in years, and this will be eating into the bank’s bottom line.

But capital gains are just part of CBA’s appeal.

Returning profits to shareholders through cash payments has always been part of Commbank’s DNA — consistently aiming to return up to 80% of profits to shareholders as fully franked dividends.

Having said that, other Big Four banks like NAB and Westpac are trading at much cheaper prices and are currently delivering dividend yields of 3.89% and 3.96% respectively (both are 100% franked).

Is CBA Stock A Solid Investment?

We’re journalists – not investment experts

But Commbank is viewed as a quality, overvalued stock by the experts.

An expensive stock may still be worth buying if it has strong growth prospects, but few analysts are bullish on CBA’s earnings and dividend payout ratios rising significantly in the near-term.

Then again, as Australia’s largest bank, Commbank’s considerable profits and long-standing stability may continue to attract long-term investment if passive investing continues to grow and financial conditions appear shakier both locally and abroad.

Jody

Netflix is famous for bringing at-home entertainment into the future. In the 1990s, it launched a streamlined DVD-by-mail subscription service and its online video-on-demand streaming service in 2007.

As the quintessential streaming service, Netflix is a cultural phenomenon — as evidenced by how ‘Netflix and chill’ has become a common euphemism for relaxing and romancing.

It’s shaped the zeitgeist through popular programs like ‘Stranger Things’, ‘Wednesday’ and ‘Bridgerton’ and the Emmy award-winning ‘Adolescence‘.

Let’s have a close look at the company’s recent share price movements – and how to invest from Australia. 

Above: Netflix shares surged after the company rolled out an ad-supported tier service tier and cracked down on password sharing. Zoom out for better historical context.

How Has Netflix Stock Performed?

Netflix has a US$305 billion market capitalisation and is among the world’s top 20 largest companies.

It listed on the NASDAQ in 2002 at US$1 per share under the ticker symbol NFLX.

Here’s are the most important milestones in the recent history of Netflix’s share price:

(Related: Our Pick Of The Best Trading Platforms In Australia.)

The company’s 2026 results have brought more pain:

Currently, Netflix share price is at a 52-week low of $73.

According to TipRanks, the average 12-month target price analysts have for Netflix is $73.33 USD, with an average 1-year analyst price target of $96.27.

(Related: How To Buy CBA Shares In Australia?)

Performance Metrics To Know About Netflix [NFLX].

As of August 2026, these are some key metrics for the NFLX share price from Nasdaq and Yahoo Finance:

(Related: How To Buy US Shares In Australia – Without Being Ripped Off).

Frequently Asked Questions About Netflix Shares.

Consider these facts before you become a Netflix investor.

1. What Will I Pay In AUD For Netflix Stock?

Each NFLX share is valued at around US$73 as of August 2026.

Keep in mind that, as an Australian investor, the affordability of shares and the value of your profits when you eventually sell will be influenced by:

(Related: eToro Review: Still The Best Broker In Australia?)

2. What ASX-Listed ETFs Hold Netflix?

A number of popular exchange-traded funds (ETFs) that you can buy through the Australian Securities Exchange (ASX) can provide exposure to NFLX shares, including:

(Related: Best Copy Trading Platforms In Australia.)

3. Does Netflix Pay Dividends?

Netflix does not pay dividends, and hasn’t paid dividends since it was publicly listed in 2002.

4. Has Netflix Had A Stock Split?

Netflix has completed two stock splits in its history to encourage investment:

At the time of Netflix’s last stock split it was trading at around US$690 per share.

5. Who Owns Netflix Shares?

More than 85% of Netflix shares are held by institutional investors, which is often seen as a positive sign for a stock’s future prospects.

(Related: Best Investing Podcasts In Australia.)

How To Buy Netflix Shares In 4 Steps.

Before you sign up with a share trading platform to purchase NFLX stock, revisit your broader investing plan.

Does owning a slice of Netflix align with your goals, timeframes and risk appetite?

With clarity about how Netflix shares fit within your strategy, you can follow these steps to purchase shares or ETFs using a stockbroking app.

Above: Buying Netflix via one of our favourite trading apps, eToro.

1. Know The Intricacies Of Being A Shareholder In US Companies.

Owning part of US-listed companies can differ from how you hold direct shares in ASX-listed companies.

Many Aussie brokers offer CHESS-sponsored shares, where you legally hold your shares separate to the company, registered via the ASX.

However, brokers that facilitate the sale of US shares do so under a custodial model.

That is, you get all the returns and make all the decisions about your shares, such as when to sell.

(Related: Best Cryptocurrency Exchanges In Australia.)

A custodial model may provide benefits such as:

Investing in a US-based company like Netflix affects how you pay tax. You’ll need to:

Speak to your accountant about whether you can claim the foreign income tax offset.

2. Choose A Stock Trading Platform That Offers Access To US Markets.

The features, pricing structures and costs of different stock trading apps available to Australian investors vary, so take your time to research and compare products before creating an account. 

To invest in Netflix, you’ll want to prioritise an online broker that:

To ensure you’re protected by Australian laws, it’s best to use an ASIC-registered broker.

You can confirm a broker is registered by finding its Australian Financial Services (AFS) Licence number on its website, and verifying the number via ASIC Connect.

(Related: How To Day Trade In Australia.)

Setting up an account is straightforward if you’re digitally savvy, but there will be some extra KYC (Know Your Customer) requirements. Get ready to share:

3. Add Funds And Place Your Order.

With a share trading account established, you’re ready to trade. Here’s how to purchase NFLX:

Should You Buy Netflix Stock?

Netflix’s 2026 results were “underwhelming” according to Bloomberg analyst Geetha Ranganathan.

Netflix now predicts a 2025 operating margin of 31.5%, but is forecasting low annual revenue growth of around 14%.

And investors are optimistic about the diluted EPS forecast of $0.82 for the upcoming Q3 of 2026

Analyst Peter Supino — who thinks NFLX can reach US$139 per share — said he’s confident it can handle potential challenges such as threats from AI-generated content and increased competition.

Growing its revenue streams and subscriber engagement will be essential to Netflix as competitors continue to make inroads.

Netflix’s strengths as a company include:

Challenges facing Netflix include:

Meanwhile, Netflix Co-CEO Gregory Peters sees plenty of room for growth – see below. But then again – isn’t that what a CEO is supposed to do?

Netflix Stock: A Solid Investment?

Netflix has the largest market share in the video streaming industry, holding strong against major competitors including Amazon Prime and Disney+.

The company’s commitment to original content to engage audiences has helped it build loyalty.

But it remains to be seen whether the company can continue to grow its subscriber base and revenues at the same rate going forward and stay ahead of its streaming peers.

Jody

As the world’s leading supplier of graphics processing units (GPUs) used to power advanced AI models, Nvidia has capitalised on the rise of ChatGPT and a host of other enterprise applications powered by artificial intelligence (AI).

Six years ago, Nvidia’s market capitalisation was below US$100 billion.

(Related: Best Copy Trading Platforms In Australia.)

In March 2024, its valuation passed US$2 trillion, and then it hit US$3 trillion within months. By July 2025 its market cap was US$4 trillion.

As one of the world’s biggest companies, alongside Microsoft and Apple, Nvidia has provided shareholders with outsized returns — but is it too late to buy Nvidia, and how do you invest from Australia?

Above: Performance of the S&P500 and the All Ords in contrast with the rocketship-like rise of Nvidia. Zoom out for better long-term context.

How Has Nvidia Stock Performed?

Nvidia was first listed on the Nasdaq stock exchange in January 1999 under the ticker symbol NVDA, at US$12 per share.

Increased retail investor inflows into the stock market starting in 2020 collectively lifted US share markets, but investment has been especially concentrated in the largest tech players, dubbed the Magnificent Seven.

(Meta, Microsoft, Alphabet, Apple, Amazon, Tesla, and Nvidia.)

The NVDA stock price surged to over US$1,000 per share for the first time in May 2024, and lifted in early June on the back of plans to launch a new AI chip called Rubin in 2026.

(Related: Our Pick Of Best Trading Platforms In Australia.)

Nvidia’s share price was slightly over US$1,208 before the 10-to-1 stock split enacted on Monday, June 10.

The split was designed to “make stock ownership more accessible”.

Its share price dropped even further in July, tumbling by around 27%. Nervous investors rotated out of tech stocks due to a shaky-looking US economy and recession fears. 

(Related: How To Buy US Shares In Australia – Without Being Ripped Off).

The share price climbed again at 2024’s close.

It hit a peak of over US$140 in January 2025. But by March 2025 it was trading at just US$94 per share.

Pundits were wondering if NVDA and the AI investor frenzy had finally lost steam — largely due to US President Donald Trump’s mercurial reign, fears over tariff impacts, and a possible trade war with China.

The company committed to producing more of its chips and supercomputers in the USA in response.

By comparison, in early 2024 Nvidia’s revenue (from Q4 FY24) grew 265% from 2023.

Many analysts still list it as a ‘buy’ and average price targets for the next 12-months range from US$220 to $230.

Nvidia [NVDA] Stock Performance Metrics To Watch.

Here are some key facts about Nvidia’s performance as of August, 2026:

Nvidia’s History, Leadership and Price Predictions.

Founded in 1993 by Jensen Huang — who still leads the company today — Nvidia’s invention of the GPU initially supercharged the gaming sector.

However, the company has come into its own since the widespread pursuit of generative AI projects.

The buzz around Nvidia and its founder is palpable, and it’s no doubt partly fuelling the company’s strong valuation.

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

Meta CEO Mark Zuckerberg once described Huang, who’s often pictured wearing a leather jacket, as “Taylor Swift, but for tech.”

Global investment bank Goldman Sachs, for one, believes the current AI-fuelled market expansion is different to past bubbles.

The bank’s chief global equity strategist, Peter Oppenheimer, said in October that despite the extreme valuations, the sector’s rise has been driven by fundamental growth by a small group of robust companies.

He dismissed concerns of “irrational speculation about future growth”.

Above: The outsized success of US tech stocks and earnings-per-share have been highly correlated.

Barron’s Big Money poll of investment professionals released in October 2025 found:

Experts point to three factors that could shift Nvidia’s dominance:

How To Buy Nvidia Shares In 3 Steps.

Before you go all-in on Nvidia, it’s important to note that stock picking and timing the market is hard. Gains are made through an increase in the share price when you sell at a future date.

Given that Nvidia’s share price is already high, you won’t be buying in low.

(Related: Best Investing Podcasts In Australia.)

Of course, you can still buy during temporary dips in the share price — but depending on how long you plan to hold your Nvidia shares, you’ll need to feel confident its price can keep rising.

It’s doubtful that Nvidia’s meteoric rise can continue indefinitely, but it’s unclear whether a major correction is imminent or if the company can maintain a steady growth trajectory.

Above: Buying NVIDIA via the user-friendly interface of one of my favourite apps, eToro.

1. Know The Intricacies Of US Share Ownership.

There’s a key difference between direct ownership of company shares in Australia and holding US shares.

Australian brokers may offer CHESS-sponsored shares, where you legally own the stock and your ownership details are registered with the Australian Securities Exchange (ASX).

A custodian company maintains ownership of the shares on your behalf — but you retain all beneficial rights. With a custodial broker:

There will also be added tax obligations if you invest in Nvidia. You’ll need to:

Check with your accountant if you’re eligible to claim a foreign income tax offset.

2. Pick The Best Share Trading App For US Markets.

Stockbroking apps vary in terms of their features, markets, and pricing models, so take some time to compare the options.

Cost should be a core consideration, as fees reduce your overall earnings from investing.

To cost-effectively invest in Nvidia shares, you’ll need a brokerage app that:

Like any app, you’ll need to provide personal details to create your account, but there are some additional KYC (Know Your Customer) requirements. You may need to provide:

3. Add Funds And Execute Your Buy Order.

With access to an online brokerage account, you can place an order for NVDA shares at any time. Follow these steps:

(Related: Best Cryptocurrency Exchanges In Australia.)

Your FAQs About NVIDIA Stock, Answered.

Consider these facts before you become a Nvidia investor.

What ASX-Listed ETFs Hold NVDA?

Exposure to Nvidia shares can be gained through several exchange-traded funds (ETFs) listed on the Australian Securities Exchange (ASX), such as:

Does Nvidia Pay Dividends?

Yes, Nvidia pays dividends. Nvidia’s next dividend payment date is on December 26, 2025.

Should You Buy Nvidia Stock?

So far, Nvidia seems to be living up to the hype, but it’s uncertain how AI innovation will progress and what that means for the company’s earnings growth.

Expectations from NVDA investors may be outpacing the fundamental value on offer, especially if the US economy doesn’t remain robust.

While the NVDA share price has increased dramatically in recent years, the AI-driven hype has yet to be validated with widespread real-world, profitable adoption of AI-powered applications.

With escalating AI training costs and growing discontent among creatives about how IP is being exploited, AI — and AI stocks — are not a sure thing.

Jody

Of the Magnificent Seven stocks, no stock is more puzzling to me than Microsoft (MSFT). I have a volatile love/hate relationship with it.

My share portfolio has a significant amount of exposure to Microsoft – about 20% – and I’ve held the stock since early 2024, when it was around $415 per share.

And yet, every time I check my “gainz”, I get a reminder that MSFT is the second-lowest performing asset in my portfolio (after Strategy – Tim Saylor’s ultra-risky levered cryptocurrency venture).

It’s certainly been one of the losers among the Magnificent 7.

Above: Microsoft stock has outpaced the S&P500 by over 50% over the last 5 years. Zoom out for better long-term context.

How Has Microsoft Stock Performed?

The Microsoft stock price lagged the broader market in early 2025. But a strong third-quarter earnings report turned things around.

Revenues and profitability both exceeded analysts’ expectations, and its shares rose around 9%. But the stock price drove off the cliff shortly after, and has been rocky ever since.

Highlights from the fourth quarter 2025 earnings statement include:

Microsoft CEO Satya Nadella said on the earnings call: “We continue to lead the AI infrastructure wave, and took share every quarter this year.”

The markets didn’t buy it. The share price tumbled, bottoming out at a 2-year low of $356 in early 2026.

(Related: Best Trading Platforms In Australia Revealed.)

Despite a relatively strong earnings call in January, where the company reported revenue of $81.3 billion, up 17% year over year and EPS of $4.14, up 24% year over year.

Investors cited growing anxiety over soaring data centre and infrastructure costs – projected to reach roughly $190 billion – and circular finance deals.

Moreover, Azure and Copilot growth forecasts disappointed Wall Street when they missed aggressive expectations.

But Microsoft’s second earnings call of 2026 triggered the company’s best stock run in 26 years. The highlights from the call are:

Will Rhind, CEO of ETF provider GraniteShares, said the 3-day, 24.9% rally was proof that investors are seeing a return from Microsoft’s investments in AI.

Goldman Sachs poured fuel on the fire, re-listing the company in its latest U.S. Conviction List, which spotlights the investment bank’s top picks. 

The report emphasised a buy rating on the stock and set a price target of $640 per share, and at least 13 Wall Street analysts raised their price targets on the stock shortly after.

Morningstar analyst Dan Romanoff said in August that Microsoft’s robust demand indicators meant it remained a top stock pick.

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

Its recent results reinforce the firm’s long-term view that cloud environments and AI adoption will expand.

Analysts at Rothschild & Co Redburn increased its price target for MSFT from US$550 to $600, with a ‘buy’ rating.

It argued that investor sentiment around Microsoft’s generative AI capabilities was “overly sceptical”.

The company’s Azure cloud service boomed in Q4 FY25, driven more by cloud migration and scaling than by AI adoption.

CEO Satya Nadella pointed to the example of Nestlé, which recently switched to Azure, migrating more than 200 SAP instances, 10,000-plus servers, and 1.2 petabytes of data.

The company has developed its own custom-designed AI processing chip, which could help it reduce its own reliance on Nvidia chips and claw back some market share from the breakout GPU supplier.

Some key risks for US markets generally include:

The firm is facing a few legal and reputational issues, too:

Microsoft [MSFT] Performance Metrics To Watch.

Data about Microsoft drawn from Yahoo Finance as of August 2026:

How To Buy Microsoft Shares In 4 Steps.

Ready to buy?

Timing is critical when buying stocks, even when a company is clearly established and valuable, like Microsoft.

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

Get professional financial advice to determine how to include US stocks in your portfolio to align with your goals, investing timeframe and appetite for risk.

Once you’ve got a solid plan, here’s how to use stock trading platforms to buy Microsoft shares or ETFs that include MSFT.

1. Understand Risks And Obligations Of Owning US Shares.

Several Australian-based brokers provide what’s known as CHESS-sponsored shares.

Whereas, when you buy US shares, brokers use a custodial model — they hold the shares for you.

You don’t have a choice in this, but it does mean you should be extra careful to choose a reputable broker likely to remain solvent.

You’ll receive all the same benefits and returns as any other shareholder. You retain control of your shares, and can sell them at any time.

Owning Microsoft shares can also increase your tax liabilities. You’ll need to:

You may be able to claim a foreign income tax offset, but it’s best to get advice from an accountant.

2. Select The Best Broker With Access To US Markets.

Choosing the best share trading platform comes down to your specific criteria, but generally people look for low-cost and easy-to-use apps.

Important criteria to factor in if you want to invest in Microsoft is whether the broker:

Table stakes for a quality stockbroking app in Australia is being an ASIC-registered broker — check the platform’s website for their Australian Financial Services (AFS) Licence number, and double-check it’s valid via ASIC Connect.

Creating a new account on a share trading platform will feel familiar to any app, but there are usually some additional KYC (Know Your Customer) requirements.

Be prepared to provide:

3. Deposit Money And Make Your Trade.

Finally, you can execute the buy order from within your online brokerage account. Follow these steps:

Above: Buying MSFT via one of my favourite trading apps, eToro.

Your FAQs About MSFT Stock, Answered.

Consider these facts before you become a Microsoft investor.

How Much AU$ Do I Need To Buy Microsoft Shares?

Each MSFT share is valued at around US$492 as of August 2026. For Australians looking to invest in the company, the cost of purchasing MSFT shares is impacted by:

Which Indices Is MSFT Part Of?

Microsoft is a constituent of the three major US stock market indices used to benchmark share market performance:

What ASX-Listed ETFs Hold MSFT?

Exposure to Microsoft shares can be gained through a number of exchange-traded funds (ETFs) listed on the Australian Securities Exchange (ASX), such as:

Does Microsoft Pay Dividends?

Yes, Microsoft pays dividends. In 2026, it paid a record $0.91 dividend per share, up from US$0.83 per share in 2025,

Looking further back, the company paid relatively modest dividends of $0.75 in 2024, $0.68 per quarter in 2023 and $0.62 per quarter in 2022.

Has Microsoft Had A Stock Split?

Microsoft has had nine stock splits since it was publicly listed. The most recent split was a 2-for-1 common stock split in 2003.

Should You Buy Microsoft Stock?

We are journalists, not investment experts, so we do not offer investment advice.

What we do know is Microsoft is a long-standing company with a solid foundation for sustained growth through its cloud and productivity business streams, beyond the so-called ‘AI halo’ that’s driven optimism among investors.

However, its reemergence as an innovation leader — and the spike in its share price — is on the back of its moves in the AI sphere.

Competitive threats, economic shocks, and uncertainty about AI’s true utility could impact the MSFT share price going forward.

Jody

Australia’s unique approach to offering investors franking credits on dividends aims to ensure that company profits are only taxed once.

The system was introduced in the 80s, then evolved in the 2000s to allow investors to claim a cash refund if their franking credit exceeded their tax owed.

Controversy arising from an attempt to reverse that generous policy – by ending cash refunds – was a major reason for Labor’s surprising loss in the 2019 election.

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

It’s rare that tax policy doesn’t become political.

Still, the issue of double taxation has been a particular bone of contention both in the public sphere and among ordinary Aussies — in part driven by confusion about how franking credits work and divisive views on their fairness.

Let’s explore why they exist and how franking credits work.

(Related: How To Buy Nvidia Stock In Australia)?

What Is Franking Credit?

Dividends are drawn from a company’s income and become investor income once distributed.

Both types of income are taxed by the ATO.

However, franking credit, also known as imputation credit or imputed tax credit, negates your share of tax paid by a company that pays you dividends.

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

What’s The Difference Between Fully Or Partly Franked Dividends?

The difference between fully and partly franked dividends lies in how much of the profits used to payout shareholders was taxed.

How Are Franking Credits Calculated?

Investors receive franking credit in addition to a cash dividend payment.

You’ll receive annual statements from the companies/funds you’re invested in that indicate unfranked and franked amounts of dividends, and franking credit, related to your shareholding for the financial year.

(Related: Guide To Dividend Investing In Australia)

You need to declare these figures on your tax return to reduce your tax liability, and potentially be eligible for a cash refund.

The tax you’ll pay on dividend earnings will also depend on your marginal tax rate based on your overall income.

Easy Example Of A Franked Dividend Calculation.

Let’s say you held 10,000 shares in National Australia Bank — whose most recent dividend is 84 cents per share, fully franked — you’d receive a dividend payment of $8,500, with $3642 in franking credits.

The calculation used to determine the franking credit on a dividend amount is:

Based on an $8,500 fully franked dividend payout from the shares you held in NAB, which paid the 30% corporate tax rate:

In this scenario, the original $8500 dividend plus franking credit of $3642 would mean you’d received a total dividend income of $12,142—which would be taxed at your marginal tax rate.

The credit would be applied to lower the remaining tax bill or entitle you to a refund.

Your end position would depend on your tax rate.

Which Government Introduced Franking Credit, And Why?

Originally introduced by Paul Keating’s Labor Government in 1987, through what’s known as the dividend imputation system, franking credits were designed to avoid the ‘double taxation’ issue.

Keating described it as a “world first” that would put Australia at the forefront of tax reform and improve the climate for investment in domestic businesses.

He said:

The move did increase the popularity of Australian stocks that offered franked dividends, especially combined with a tax on superannuation fund earnings introduced the following year (1988), which increased the attractiveness of funds holding equity relative to alternative assets.

Why Are Franking Credits Controversial?

For 14 years, you could only use franking credits to offset any tax liability down to zero.

Then, in 2001, John Howard’s Coalition Government changed the system to enable the government to pay investors if the offset from franking credit exceeded their taxable income.

However, criticisms of the policy include the fact that it can result in company profits being effectively tax-free and unfairly reduces the public purse.

In the lead-up to the 2019 election, Labor campaigned on a policy to scrap the cash refund element of the imputation system — and a bloodbath ensued.

The strident public discourse essentially amounted to a “rich versus poor” dichotomy.

Labor claimed removing the refund would bring equity by targeting millionaire retirees, while the Coalition argued it would hurt low-income earners and ‘mum and dad investors’.  

Speaking on the policy at the time, its conceiver Paul Keating said:

However, Labor was defeated, and franking credit cash refunds remain.

In November 2023, the current Labor Government was able to pass a bill that prevents certain dividend distributions from being franked if they’re funded by capital raising, which was seen as a potential manipulation of the system in contravention of the ATOs anti-avoidance measures.

(Related: How To Invest In Index Funds In Australia).

Are Franking Credits A Band-Aid Solution?

A significant number of tax concessions — capital gains discount, franking credit cash refunds, higher income tax scale thresholds, removing tax on super — have been introduced since the early 2000s that predominantly favour wealthier Australians.

Some argue Labor’s efforts to cut the franking credit cash refund was a cynical move by a government unwilling to face the political hurdle of taxing wealthy retirees’ large super balances, or instigating more systematic tax reform.

Who Benefits From Franking Credits?

Any Australian investor who receives franked dividends can use the credit to lower their tax bill or potentially get a refund.

Investors eligible for this extra bonus get the cash included in their refunds from the tax office (or through a direct application to the ATO if not submitting a tax return).

Stockbroker Marcus Padley describes the key traits of a typical ‘set and forget’ retiree investor as follows:

What Is The 45-Day Holding Rule?

If your total franking credit amount in a year is $5,000 or more, you’ll be subject to tax rules designed to ensure you pay your fair share.

Learn more about ATO conditions that could mean you’re not entitled to claim a franking tax offset.

Final Thoughts On Franking Credits.

It’s worth noting that Australia’s model is not widely adopted. Some countries do provide some level of tax offset for dividends paid to investors.

A number have also pared back such arrangements — sometimes in favour of corporate tax cuts — and now offer credits equal to 10-50% of the value of the dividends.

Whether it’s wise, or fair — or not — it is true that franking credits and cash refunds currently provide an opportunity for investors to generate inflated returns from ASX-listed stocks that offer franked dividends.

Whether the tax policy is sustainable or whether future governments will manage to overcome the public outcry to change it in future, remains an unknown quantity.

Jody

The statistics for investing success are grim. About nine out of every ten people setting out to become investors in the stock markets fail – either by losing all of their money or by losing so much of it that they are forced to give up investing.

Yet, more than one million Australians plan to start investing via stock exchanges in the coming year.

(Despite – or perhaps because of – 13 consecutive interest rate rises in the last few years making the cost of living unbearable for many).

Education is the first step to success. Use the guide below to master the basics before you start your investment journey. Let’s begin!

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

How Does The Stock Market Work?

When a company ‘goes public’, it gives the general public a chance to take part ownership by issuing a certain number of shares in the company.

Once company shares have been issued, they can be freely bought and sold on the stock market.

This happens through stock exchanges such as the Australian Securities Exchange (ASX) in Australia or the New York Stock Exchange (NYSE) in the US, sometimes called secondary markets.

Each exchange is similar to an online retail marketplace like eBay, where the price of items fluctuates depending on availability and the price people are willing to pay.

Collectively, these global markets for trading stocks are called stock markets.

Finance types or news anchors might refer to ‘the stock market’ or ‘the market’ when describing changes or trends in share prices nationally, or across multiple exchanges, industries and geographies.

Shares Vs. Stocks Vs. Equities.

Stock is the more generalised term used to describe the overall ownership of a publicly listed company, while a share is the most accurate way to describe the smallest, single unit of ownership in a specific company.

Most people invest in multiple shares across multiple companies, so the terms “stocks” and “shares” are used interchangeably to talk about company ownership.

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

Investing in a company can be described as having equity, so you might also hear shares called equities.

What Does Being A Shareholder Mean?

Companies, institutions and individuals can all own a company’s stock by buying shares. Even owning one share makes you a shareholder.

Shareholders don’t own the company’s assets, and they’re not responsible for the company’s liabilities (e.g., debt), but they do gain several rights, including being able to:

While ‘ordinary’ shares are the most common type issued, companies can issue different kinds of shares with different rights attached.

For instance, preference shares (sometimes called hybrids) entitle holders to be paid ahead of ordinary shareholders.

Why Do Ordinary Australians Invest In Shares?

Investing in shares of companies with the potential for growth and long-term positive results means you’ll benefit from any associated increases in share prices, plus receive a share of any profits distributed.

Returns on stock market investments fall into two main categories:

1. Capital Gains.

Essentially, the difference between what you paid for your shares and the price you can sell them for.

Capital gains or losses are only realised when you choose to sell.

2. Dividends.

A discretionary payment distributed from a company’s profits as a way to reward shareholders, typically paid annually, at an amount proportional to the number of shares you hold.

Some people keep dividends as income, while others use company dividend reinvestment plans (DRP) to purchase more shares and keep growing their portfolio.

How Many Australians Invest In the Stock Market?

Investing in shares is a common wealth-generation tactic in Australia.

For both beginners and more experienced individual investors in Australia, directly owning shares in Australian companies listed on the ASX is the most popular investment outside of superannuation or owning their own home.

Are Shares A Safe Form Of Investment?

There are no guarantees in investing and no perfectly safe way to get rich.

However, you can take some reassurance from the fact that investing in shares is a widely practiced approach.

Cash in the bank and government-issued bonds are considered low-risk investments, but the returns are usually lower than what you could reasonably expect from the share market when holding your investments long-term.

This begs the question: how risky are shares?

The main risk is that the value of the shares you hold will drop, rather than increase. This can happen when:

Markets can be volatile, and backing the wrong companies can turn out badly.

Living with some level of variability in share prices is something that most investors are comfortable with, but it depends on your risk tolerance.

Why Do Investors Diversify Their Portfolios?

Diversification is a core tenet of a good investment portfolio, because it spreads your risk. If one company or industry experiences a downturn, others may be unaffected or even buoyed.

A fund managed on your behalf by an investment firm might include anywhere from 20-200 different stocks, which would be adjusted by a dedicated expert.

Individual investors may have less experience and less time to handle a large collection of stocks bought directly.

When you buy units of ETFs, you pool your money with others to gain exposure to a collection of assets, like shares within an index or focused on a specific industry.

How Much Does Investing In Shares Cost?

First, remember that most brokers (e.g., Selfwealth and eToro) require you to buy at least $500 worth of shares when purchasing for the first time.

Remember, each trade will come with transaction costs.

Some brokers have very simple fee structures (e.g., Selfwealth charges $9.5 commission per trade – that’s it), while others are very convoluted (e.g., Interactive Brokers has a tiered fee structure, and it varies depending on the asset you’re buying).

We recommend you reduce brokerage fees by reading our guide to the best stock trading apps.

How To Choose Which Shares To Invest In?

If you want to buy individual shares in a company directly, you’ll need to assess its market value and decide whether you think it will thrive in the future.

Successful investors start by getting an in-depth knowledge of how the company operates, its financial performance, and its strategic growth plans.

They contrast this know-how to broader economic conditions, industry trends, and challenges that could impact the company and review its major competitors and their performance.

They pay specific attention to the following core metrics.

1. Market Capitalisation.

It offers a sense of how the company is valued based on equity, which is different from its value based on its balance sheet.

Market cap is calculated by multiplying the current share price by the total number of shares on issue.

However, regardless of how profitable the company currently is, demand for its shares among investors can boost its share price, raising the stock’s overall value in the market.

2. Historical Share Price.

Has the share price been steadily rising or declining over time? A downward trend could indicate the company poses a higher risk.

A rapid rise in share value might indicate high levels of speculative buying (e.g., not based on the company’s inherent value and potential), which can create bubbles that eventually burst.

3. Dividend Yield.

If income is a driver for the investor, they’ll review the stock’s dividend yield to see if it’s both attractive and appears to be sustainable.

This might indicate that a company is in decline and will not be able to distribute profits in the future.

4. Price-To-Earnings Ratio.

In addition to the actual price of each share or unit in a fund, investors consider its price-to-earnings ratio (P/E).

P/E ratio reveals roughly how much was paid for each dollar returned, based on dividing the share price by the previous year’s earnings per share (EPS).

What Investors Do Before They Invest Money.

The difference between experienced and beginner investors is preparation.

While beginners tend to act impulsively and think short-term, experienced investors start by understanding their investment goals and building an investment strategy that helps them achieve them.

Experienced investors:

1. Know Their Financial Position.

This includes cash flow and budget for spending and saving.

They know how much they can put towards investments without impacting their financial health.

2. Clarify Their Financial Goals.

Both short and long-term.

The big one is retirement, but other goals can include getting married, buying a home or a new car, becoming a parent, starting a business, returning to study, and taking a major holiday.

3. Estimate The Rate Of Return.

Experienced investors know which investment choices can help them reach their financial.

Importantly, they sense-test it against the level of risk they’re prepared to accept, and the kind of returns different investment types have historically been capable of delivering.

Where there’s a mismatch, they adjust their investment strategy or expectations.

4. Determine Asset Allocation.

In other words, which types of assets belong in the investment portfolio, and what share of the portfolio should they take up?

Shares typically form a significant part of the average Australian’s portfolio, balanced by a portion of other assets such as bonds, cash (term deposits), real estate, commodities like gold and silver, and increasingly, cryptocurrencies.

(Related: Best Cryptocurrency Exchanges In Australia).

Once the investors know how much they’re willing to commit to shares, they decide on the ideal mix.

For example:

Final Words On Stock Market Investing.

Learning about investing is a lifelong process. We suggest you learn as much as possible about the stock market before you start investing.

When you’re prepared and purposeful, you’re more likely to make wise choices. Even Warren Buffet, despite his wealth of experience, still spends most of his days reading.

Learning never stops.

Finally, consider obtaining investment advice from a professional financial advisor. This article is written for entertainment and informational purpose only – it doesn’t take your personal financial situation into account.

Jody