Share Trading comparison
CommSec vs Pepperstone
CommSec and Pepperstone are fundamentally different products. CommSec is Australia's largest CHESS-sponsored broker for buying and holding real ASX shares. Pepperstone is a CFD and forex provider — you never actually own the underlying asset, and your trades are not settled on the ASX or covered by CHESS. If you want to build a real share portfolio, the choice is clear.
Choose
CommSec
if…
- ›You want to buy and hold real ASX shares under your own HIN with CHESS sponsorship
- ›You need access to IPOs, managed funds, bonds, and corporate actions like SPPs and rights issues
- ›You want a single platform that covers ASX, US, UK, European, Canadian, Hong Kong and Japanese equities in real shares
- ›You need a kids/minor account or SMSF account for long-term investing
- ›You want a platform backed by the Commonwealth Bank with integrated CDIA banking
Choose
Pepperstone
if…
- ›You want to trade leveraged CFDs on indices, forex, commodities and shares — not own the underlying asset
- ›You need a demo account to practise trading strategies before risking real money
- ›You want to trade with zero minimum deposit and fund via PayPal, Apple Pay, Google Pay or credit/debit cards
- ›You're a short-term active trader focused on price speculation rather than dividends or long-term holding
- ›You want desktop trading software (MetaTrader, cTrader) alongside mobile and web
Where they differ
| Fact | CommSec | Pepperstone |
|---|---|---|
| What you actually buy | Real ASX shares under your own HIN (CHESS-sponsored) | CFDs only — you never own the underlying share |
| ASX brokerage model | 0.12% ($5 min) with CDIA, or $29.95 flat up to $10k without | 0.07% ($5 min) — but on CFDs, not real shares |
| US brokerage | $5 min or 0.12% | $0.02 USD min |
| FX spread on AUD/USD | 0.0055% | 0.5% |
| Corporate actions & dividends | Full entitlement to dividends, SPPs, rights issues, voting | Dividend adjustments passed as cash entries; no franking credits, no voting rights |
Verdict
Use CommSec to own real shares under CHESS. Use Pepperstone only if you want leveraged CFDs and don't need actual ownership.
All data points side-by-side
Every verified fact for both platforms. Differences are highlighted.
| Field | CommSec | Pepperstone |
|---|---|---|
| account structure | ||
| CHESS sponsorship model | chess | — |
| Individual HIN | Yes | — |
| Individual account | Yes | Yes |
| Joint account | Yes | Yes |
| Company account | Yes | Yes |
| Trust account | Yes | Yes |
| SMSF account | Yes | No |
| Kids / minor account | Yes | No |
| asset coverage | ||
| ASX shares supported | Yes | No |
| ASX ETFs supported | Yes | No |
| US shares supported | Yes | No |
| US ETFs supported | Yes | No |
| Other markets supported | United States, Canada, United Kingdom, France, Germany, Italy, Netherlands, Hong Kong, Japan, Belgium, Norway, Spain, Sweden | US, UK, DE, FR, HK, BE, CH, DK, NO, SE, FI, IE, PT, ES, AT, AU |
| Fractional shares (ASX) | No | No |
| Fractional shares (US) | Yes | No |
| Options trading | Yes | No |
| CFDs supported | No | Yes |
| Managed funds | Yes | No |
| Bonds supported | Yes | No |
| IPO access | Yes | No |
| costs hidden | ||
| FX spread (AUD/USD) | 0.55% | 50% |
| FX spread (other currencies) | 0.55% | 50% |
| Holds USD account | Yes | Yes |
| FX currency switch trick | No | No |
| Market data fees | $0/month | $0/month |
| Conditional order fees | $0 | $0 |
| Phone trade surcharge | $59.95 | — |
| Corporate action fees | Corporate actions (SPP, rights issue, takeovers, demergers, dividend payments) are not separately charged by CommSec. They are processed via the share registry/issuer. CommSec does not send trade confirmations for off-market events, so Sharesight/other tracker sync requires manual updates. Failed-settlement fees apply if payment is late ($10 minimum or 0.66% above $1,500). | Not applicable — Pepperstone offers share CFDs only, not real shares. Clients have no entitlement to rights issues, SPPs, takeover offers or shareholder voting. Dividend adjustments are passed through as cash entries on share CFD positions (credited on longs, debited on shorts, with franking credits not passed through). |
| costs visible | ||
| ASX brokerage minimum | $5 | — |
| ASX brokerage percentage | 0.12% | — |
| ASX brokerage threshold | $25,000 | — |
| ASX free trade conditions | Conditional: $5 minimum requires linked CDIA (Commonwealth Direct Investment Account) or CommSec Margin Loan as the settlement account AND CHESS sponsorship with CommSec. Without CDIA linkage, brokerage starts at $29.95 for trades up to $9,999.99 and 0.31% above. Promotional $0 brokerage offers occasionally run for new customers (e.g. 30 free trades up to $50,000 each, May–Nov 2026 offer for new sign-ups). | — |
| US brokerage minimum | US$5 | — |
| US brokerage percentage | 0.12% | — |
| Monthly platform fee | $0/month | $0/month |
| Annual platform fee | $0/year | $0/year |
| Inactivity fee | $0 | $0 |
| Withdrawal fee (AUD) | $0 | $0 |
| Off-market transfer fee | $54 | — |
| identity and trust | ||
| Legal entity name | Commonwealth Securities Limited | Pepperstone Group Limited |
| AFSL number | 238,814 | 414,530 |
| Year founded | 1,995 | 2,010 |
| Parent / ownership | Commonwealth Bank of Australia (ASX: CBA) | Privately held. Majority owner FX Group Holdings (Fiona Lock, CEO Tamas Szabo and Andrew Defina) acquired the 60% stake previously held by CPE Capital (formerly CHAMP Private Equity) in 2018; founders Owen Kerr and Joe Davenport retain the remaining 40%. |
| Country of incorporation | AU | AU |
| Public company status | public | private |
| money movement | ||
| Minimum initial deposit | $500 | $0 |
| Minimum subsequent purchase | $0 | $0 |
| Deposit methods | BPAY, Direct debit, Bank transfer (CDIA), Cheque, Cash deposit (CBA branch/ATM) | PayID, BPAY, bank transfer, debit card, credit card, PayPal, Apple Pay, Google Pay, Neteller, Skrill |
| Settlement period | T+2 (ASX) / T+1 (US) | N/A (CFDs are not settled — positions are open derivative contracts marked-to-market continuously, with overnight swap charges in lieu of settlement) |
| Withdrawal time | Same-day to 1 business day (instant when funds in CDIA via real-time transfer) | Up to 2 business days for cards, PayID, BPAY and domestic bank transfer; up to 1 business day for PayPal/Neteller/Skrill. |
| platform ux | ||
| iOS app | Yes | Yes |
| Android app | Yes | Yes |
| Desktop platform | No | Yes |
| Demo account | No | Yes |
| Free real-time market data | Yes | Yes |
| Free research reports | Yes | Yes |
| 2FA support | SMS + authenticator | authenticator |
| Customer support channels | phone, email, live chat (in-app), secure mail (in-platform), social media (X, Instagram) | phone, email, live chat |
| Support hours (AU time) | Phone 8am-6pm Mon-Fri Sydney time (general & options); extended trading-hours support during ASX session. No 24/7 support. | 24/5 (Monday morning AEST to Saturday morning AEST), with 18 hours coverage on weekends; Melbourne-based Australian support team available during AEST business hours. |
| Education content | structured courses | video + courses |
| tax and reporting | ||
| Australian tax statement | Yes | No |
| Distribution component breakdown | No | No |
| CGT calculator / report | No | No |
| Sharesight / Navexa integration | Yes | No |
| trading mechanics | ||
| Market orders | Yes | Yes |
| Limit orders | Yes | Yes |
| Stop loss orders | Yes | Yes |
| Conditional orders | Yes | Yes |
| Auto-invest / DCA | No | No |
| Auto-invest sophistication | none | none |
| DRP (dividend reinvestment) | Yes | No |
| After-hours / overnight trading | Yes | Yes |