Top Investment Trading Apps for Australians

Until recently, the idea of managing stocks and shares directly from your mobile device—essentially having a full-fledged dealing room in your pocket—seemed like a far-fetched notion. However, the rapid evolution of smartphones has turned this once-imaginary scenario into a practical reality. 

In Australia, private investors are increasingly relying on trading apps, not just for occasional transactions, but for managing entire investment portfolios from the convenience of their mobile devices. The adoption of these apps has surged, with nearly one in five investors now accessing share markets through mobile platforms. The popularity of micro-investing apps has been particularly notable, experiencing a remarkable 100% growth in the year leading up to the end of 2022. 

Whether you're new to buying shares or a seasoned investor navigating the stock market, understanding the rise of trading apps is crucial. These tools have revolutionized how people engage with investments, offering unprecedented access and control. But with a growing array of options available, it’s essential to choose an app that aligns with your specific investment goals and needs. 

It’s important to remember, though, that investing is inherently speculative. As an investor, your capital is at risk, meaning you could potentially lose some or even all of your invested funds. 

When selecting a trading app, minimizing your trading and investment costs is essential to maximizing your returns. However, the ideal app varies depending on individual needs and preferences—there's no one-size-fits-all solution. Here’s how to approach the decision-making process: 

Key Considerations 

Beyond fees, consider these factors to ensure your trading app meets your expectations: 

1. User Experience: How easy is the app to navigate? Is the interface intuitive and user-friendly? 

2. Investment Options: Are you looking to trade shares, funds, or more complex assets? 

3. Demo Accounts: If you’re new to investing, does the app offer a demo account to practice before investing real money? 

4. Additional Charges: Besides trading fees, what other administrative costs might you incur? 

5. Minimum Investment: Is there a minimum amount required to start investing? 

6. Regulation: Is the app regulated by ASIC, and does it have an AFSL license? 

7. Extra Benefits: Are there any rewards, such as frequent flyer points or sign-up bonuses? 

8. Micro-Investing: If budget is a concern, does the app support micro-investing? 

Trading Apps for Different Scenarios 

The trading app market is diverse, catering to everyone from beginners to seasoned investors. Here are some top picks: 

1. eToro: Ideal for low fees and copy trading. It offers a mix of traditional and new assets, like cryptocurrencies, with zero-commission trades and a demo account for practice. 

2. Selfwealth: Great for educational resources. It offers a flat trading fee and resources like virtual accounts and educational videos, making it a cost-efficient option. 

3. Tiger Brokers: Known for its user experience, it offers low fees, a clean interface, and incentives for both local and international trading. 

4. Superhero: Good for bonus features and rewards, including frequent flyer points with Qantas. It offers a $5 flat fee per trade on ASX stocks and no fees on US markets. 

5. Saxo Markets: Ideal for accessing investment research with over 50 international markets available and a range of educational resources, although live pricing requires a subscription. 

6. IG: Best for a wide range of markets, allowing users to trade on over 18,000 global markets with advanced tools for seasoned investors. 

7. Pearler: Good for no account fees, it’s beginner-friendly, with a flat trading fee and features like kids investing and a social investor community. 

8. Stake: Excellent for micro-investing, offering a low entry point and a small brokerage fee for trading on various global markets. 

9. Bank-Owned Platforms: Convenient for ease of use, especially for existing customers, though they often come with higher fees compared to independent trading platforms. 

Understanding Trading Costs 

Trading costs can be complex and vary widely between providers. Some charge a flat fee per trade, while others cater to frequent traders with tiered pricing. Additionally, accounts may come with subscription or inactivity fees. If you’re trading overseas shares, expect currency conversion fees, and remember that "commission-free" trading doesn’t mean fee-free—brokers often have other charges like withdrawal or conversion fees. 

Match Your App to Your Trading Style 

Before selecting an app, consider your investment style. Knowing how much you plan to invest, how often you’ll trade, and which markets interest you will help identify the most cost-effective app for your needs. 

Avoiding the Pitfalls of Indiscriminate Trading 

While the convenience and low cost of trading apps can enhance your returns, they also carry risks. Research from Frankfurt’s Leibniz Institute suggests that app-based trading may lead investors to make riskier decisions, such as buying volatile stocks. The ease of app-based trading can sometimes prompt hasty decisions, so it’s essential to trade with caution.