How to Buy ETFs in Australia: Best Brokers Compared (2026)

This guide covers both — a step-by-step walkthrough of how to buy ETFs on the ASX, plus a data-driven comparison of every major broker available to Australian investors in 2026.

How to Buy ETFs: 6 Steps

Step 1: Choose a Broker

This is the only step that actually matters long-term. The broker you choose determines what you pay per trade, whether you own your shares directly (CHESS) or through a custodian, and what features are available. We break down every option below.

Step 2: Open an Account

Every broker requires:

• Photo ID (driver's licence or passport)

• Tax File Number (TFN) — not legally required, but without it the broker withholds tax at the highest marginal rate

• Bank account details for deposits and withdrawals

Most brokers complete identity verification digitally in under 5 minutes. Some (like CommSec) can be instant if you're already a CBA customer.

Step 3: Deposit Funds

Transfer money from your bank account to your brokerage account. Depending on the broker:

• Instant: CommSec (if CBA customer), CMC Invest (PayID), Betashares Direct

• 1-2 business days: Most other brokers via BPAY or bank transfer

Step 4: Search for Your ETF

Every ETF on the ASX has a ticker code. Type it into your broker's search bar:

• VAS — Australian shares (Vanguard)

• IVV — S&P 500 (iShares)

• VGS — Global shares (Vanguard)

• NDQ — Nasdaq 100 (BetaShares)

• DHHF — All-in-one growth (BetaShares)

Not sure which ETF? Browse all 464 ASX-listed ETFs on ReviewETF.

Step 5: Place Your Order

You have two order types:

• Market order: Buys at the current price. Executes instantly during market hours (10am–4pm AEST, Monday–Friday).

• Limit order: Sets your maximum price. Only executes if the price reaches your level.

For most ETF investors buying broad index funds, a market order is fine. The bid-ask spread on large ETFs like VAS and IVV is typically 1–3 cents.

Minimum trade: Most CHESS-sponsored brokers require a minimum first purchase of $500 per ETF (ASX rule). Custodial platforms like Betashares Direct allow investments from $10.

🚨Note: ETFadviser recommends that you do not trade ETFs before 10:20am in the morning here

Step 6: Hold and Monitor

Once you own the ETF, you'll receive distributions (dividends) automatically — either paid to your bank account or reinvested via a DRP (distribution reinvestment plan) if offered.

Set up a regular investment schedule (weekly, fortnightly, or monthly) using:

• Auto-invest on Betashares Direct or Vanguard Personal Investor

• Manual DCA by placing regular trades yourself

The Best Brokers for ETFs in Australia (2026)

The brokerage landscape has transformed. In 2020, every broker charged $10–$20+ per trade. Today, multiple platforms offer $0 brokerage on ETFs. The competition is fierce, and investors are the winners.

Full Broker Comparison Table

CMC: $0 on first ASX buy under $1,000 per ETF per day. Other trades $11 or 0.11%.
*Vanguard PI: $0 on Vanguard ETF buys. $9 on sells and non-Vanguard trades.

What Brokerage Actually Costs You Over a Year

This chart shows the real annual cost of each broker for someone investing $200 per week into a single ETF. Over $10,400 invested in a year:

• $0 platforms (Betashares Direct, Webull, CMC, Vanguard) keep 100% of your money working

• Stake and Moomoo at $3 per trade cost $156/year (1.5% of invested)

• CommSec at $5 per trade costs $260/year (2.5%)

• SelfWealth at $9.50 per trade costs $494/year (4.8%)

For small, frequent investors, the difference between $0 and $9.50 per trade is dramatic. If you're investing $200 weekly, choosing SelfWealth over Webull costs you nearly $500 a year in brokerage alone.

How Brokerage Fees Compound Over 10 Years

Brokerage isn't just a one-time cost — it's money that never gets invested, never compounds, and never earns returns. This chart shows what happens to a $500/month investment over 10 years at 8% returns with different brokerage levels.

The difference between $0 brokerage and $19.95 per trade grows to $3,593 over 10 years — that's $3,593 of lost compounding from brokerage alone, on top of the $2,394 in direct brokerage payments ($19.95 × 120 months).

The lesson: if you invest regularly, brokerage matters more than most people think.

CHESS Sponsored vs Custodial: What's the Difference?

This is the most common question new investors ask — and the most misunderstood topic in Australian investing.

CHESS Sponsored (Your Name on the Register)

With a CHESS-sponsored broker, your shares are registered directly in your name on the ASX's CHESS system. You receive a HIN (Holder Identification Number), starting with "X", that links your holdings to you personally.

CHESS brokers: Webull, CMC Invest, Stake, SelfWealth, CommSec, NAB Trade

Advantages:

• You are the legal owner — shares are in your name

• If the broker goes bankrupt, your shares are unaffected

• Easy to transfer between CHESS brokers (just move your HIN)

• You receive communications directly from ETF issuers

Disadvantages:

• Historically higher brokerage fees (though Webull has changed this)

• $500 minimum first trade (ASX requirement)

• No fractional investing

• T+2 settlement (trades settle in 2 business days)

Custodial (Broker Holds on Your Behalf)

With a custodial broker, the platform holds your shares under their own HIN. You have beneficial ownership — all dividends, voting rights, and economic benefits belong to you, but the broker's name is on the register.

Custodial brokers: Betashares Direct, Vanguard Personal Investor, Moomoo, Interactive Brokers, Superhero

Advantages:

• Often lower or zero brokerage fees

• Fractional investing available (invest exact dollar amounts)

• Lower minimums ($10 on Betashares Direct)

• Often faster execution

Disadvantages:

• Harder to transfer shares if you switch brokers (may need to sell and rebuy)

• If the broker has serious issues, recovery may take longer (though still legally protected)

• You don't receive a HIN

Does It Actually Matter?

For most investors, it matters less than the internet suggests. Australian custodial models are regulated by ASIC and client assets must be held separately from the broker's assets. In a broker insolvency, your shares are still your shares — it just might take a bit longer to sort out compared to CHESS.

The practical difference: if you think you might switch brokers in the future, CHESS makes transferring easier. If you want zero brokerage and fractional investing, custodial platforms offer that.

Broker Verdict: Which One Should You Choose? 🥊

➡️If you're just starting out (investing under $1,000/month):

Betashares Direct — $0 brokerage, fractional investing from $10, auto-invest into up to 5 ETFs. The easiest on-ramp for new investors. The trade-off is custodial (not CHESS) and limited to ASX only.

➡️If you want CHESS sponsorship at the lowest cost:

Webull — $0 brokerage on all AU and US ETFs, CHESS sponsored. This is the current price leader for CHESS investors. Relatively new to Australia but backed by a NASDAQ-listed parent company.

➡️If you DCA under $1,000 and want CHESS + research:

CMC Invest — Free brokerage on first ASX buy under $1,000 per ETF per day. CHESS sponsored. Good market data and research tools. 16 international markets.

➡️If you only buy Vanguard ETFs:

Vanguard Personal Investor — $0 to buy Vanguard ETFs, auto-invest available. Makes sense if your entire portfolio is Vanguard funds (VAS, VGS, VDHG, DHHF). Custodial model.

➡️If you want a clean app + CHESS + US shares:

Stake — $3 per trade, CHESS sponsored, solid mobile app, US share access at $3 USD. The $3 fee is worth it if you value the interface and want CHESS.

➡️If you make large, infrequent trades:

SelfWealth — $9.50 flat fee regardless of size. If you save up and invest $10,000+ once a quarter, SelfWealth's flat fee is actually cheaper than percentage-based brokers.

➡️If you want global market access:

Interactive Brokers — 170+ markets worldwide, lowest FX conversion fees, professional-grade tools. Not beginner-friendly, but the best for sophisticated investors who want access beyond Australia and the US.

➡️If you're a CBA customer and value simplicity:

CommSec — Integrates with CBA banking, CHESS sponsored, widely trusted. Fees are higher ($5–$60 depending on trade size), but instant deposits if you bank with CBA. The new $5 tier for trades under $1,000 has made it more competitive.

What About Robo-Advisors?

If you don't want to choose your own ETFs, robo-advisors build and manage a portfolio for you:

Our take: Robo-advisors charge an ongoing management fee on top of the ETF's own fees. For most people, buying a single diversified ETF like DHHF (0.19% MER) or VDHG (0.27% MER) through a zero-brokerage platform achieves the same diversification at a fraction of the cost.

Raiz's $4.50/month fee on a $5,000 balance works out to 1.08% per year — more expensive than most active ETFs.

The Decision Framework

Not sure which broker to choose? Ask yourself these three questions:

1. How often will you invest?

• Weekly or fortnightly → Choose a $0 brokerage platform (Betashares Direct, Webull, CMC)

• Monthly or quarterly → $3 brokerage (Stake) is acceptable

• Annually or large lump sums → Flat-fee brokers (SelfWealth) make sense

2. Do you care about CHESS sponsorship?

• Yes → Webull ($0), CMC ($0 under $1K), Stake ($3)

• No → Betashares Direct ($0), Vanguard PI ($0 on Vanguard)

3. Do you want US shares too?

• Yes → Webull ($0 US ETFs), CMC ($0 US), Stake ($3 USD)

• No → Betashares Direct or Vanguard PI are simpler

Common Mistakes to Avoid

❌Paying too much brokerage on small trades. If you're investing $200/week and paying $9.50 per trade, that's 4.75% lost to brokerage before your money even hits the market. Switch to a $0 or $3 broker.

❌Ignoring FX fees on US trades. Brokers advertising "$0 US brokerage" still charge an FX conversion fee when you move AUD to USD. These range from 0.55% (Stake) to 0.70% (CMC). On a $10,000 USD trade, that's $55–$70.

❌Obsessing over CHESS vs custodial. Both models are regulated and safe. Don't pay $500/year more in brokerage just to have CHESS sponsorship. That said, Webull now offers both CHESS and $0 ETF brokerage — so you don't have to compromise.

❌Not setting up auto-invest or a DCA schedule. The biggest risk for new investors isn't choosing the wrong broker — it's not investing regularly. Automate your contributions and remove the decision-making.

❌Opening too many broker accounts. Pick one broker, start investing. You can always switch later. Having money spread across 3 platforms makes tracking harder and increases the chance you'll forget about an account.

❌Trading ETFs before 10:30am. ETFs need to open with the market and be priced correctly by market makers, so don't rush in and buy or sell ETFS in the first 30 minutes of the stock market opening (it opens at 10am).

Research every ETF mentioned in this article on ReviewETF — compare fees, performance, and holdings across all 464 ASX-listed ETFs.

Sources: Broker websites (CommSec, Stake, CMC Invest, Webull, Betashares Direct, Vanguard, SelfWealth, Interactive Brokers, Moomoo), BetaShares education resources, ASX, Finder, Passive Investing Australia. All fees verified March 2026.

No broker is paying for placement in this article. This is independent analysis based on publicly available fee schedules.

This article is general information only and does not constitute financial advice. Consider your own circumstances and seek professional advice before making investment decisions.