Investing is key to long-term financial success, and one way to do it is by buying shares. Shares can be bought through a brokerage, some popular options include Commsec, NABTrade, and Stake. These brokerages charge fees when I buy or sell shares using their accounts.
Traditionally, big players such as Commsec, have dominated the market. However, in the last decade, several smaller companies have emerged, offering cheaper fees and a better user experience through their mobile apps.
The table below shows the fee ranges for some well-known online brokers that I compared. If I was going to trade $1k weekly, I could save up to $517 annually by choosing the lowest instead of highest cost broker. If I had more money and will be trading around $50k weekly, the yearly savings might reach $3,120 if I chose the lowest instead of highest cost broker.
When choosing the right broker for me, I didn't just focus on fees. I considered other important factors like how fast I can transfer funds, how user-friendly the platform is, its safety reputation, and whether it offers a mobile app.
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