Why choosing the right online broker is so important

Livewire Exclusive

Livewire Markets

Choosing an online stockbroker can be one of the most important investment decisions you make.

While your returns will be predominately driven by the individual investments chosen, partnering with the right online broker can positively impact performance. The influence of educational resources, research and charting tools, and brokerage costs on your total portfolio return and experience as an investor should not be underestimated.

The latest Investment Trends research, which again awarded Bell Direct #1 for overall customer satisfaction, identified fees, convenience and platform features as the most important offerings for investors.

Weighing up the options

It’s a good time to be an investor – competition among online brokers is fierce, meaning platforms are consistently innovating and improving their offering.

When weighing up your options, it’s important to consider what kind of investor you are. If you’re starting out, you should look for a broker who offers educational resources to help you choose and execute your first trades. Alternatively, if you’re a more seasoned or active trader, having access to research, analysis and charting tools should be a crucial element of your decision making.

Having these resources readily available to help you know when, how and what to invest in, can have a substantial influence on the overall performance of your portfolio.

Some platforms even offer investment comparison tools, like Bell Direct’s ETF Filter. Catering to all experience levels, the ETF filter can help identify the most suitable ETF aligned to your investment goals and risk appetite.

Cost remains a focus

For some investors, the cost of brokerage is the most important factor. For other investors, the platform, tools and research outweigh the cost.

On average, brokerage for trades over $1,000 can range from $15 to $30. For frequent traders, many online brokers offer discounted brokerage on a high volume of monthly trades. As with all platforms, you should review the fee structure as this could significantly impact the performance of your portfolio over time.

Solid, stable backing

Ultimately, it’s important to do your research before opening an account with any online broker. With so many newcomers entering the sector, investors should do their due diligence and read reviews to ensure investment transactions are legitimate and accounts are secure.

Many of the online brokers in the space are backed by major Australian financial institutions, which can provide assurance of stability despite broader economic or market conditions.

Keen to try out the most awarded broker?

Over the last seven years, Bell Direct has performed consistently, ranking #1 for overall customer satisfaction, as voted by investors in 13 out of 14 surveys conducted by Investment Trends.

Get more with Bell Direct

Access our award winning trading platform, real broker research from Bell Potter and a host of other smart features you can’t get from other online brokers. Find out more.


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