What is CHESS sponsorship and do I need it as a beginner?

CHESS sponsorship means your name is recorded on the ASX share registry as the legal owner of your shares. As a beginner, you do not strictly need it, especially if you hold small amounts. But if you ever want to transfer shares to another broker without selling them, CHESS makes that simple. Custodian models (Superhero, Sharesies) hold shares on your behalf, which is fine for small balances but adds a step if you switch brokers later.

No. Raiz is a micro-investing platform that invests your money into pre-built ETF portfolios. You do not buy individual shares or choose which companies to invest in. Raiz charges $5.50 per month instead of per-trade brokerage. It is a good way to build an investing habit, but it is not a broker and does not offer CHESS sponsorship or direct share ownership.

What is the cheapest Australian broker for buying ASX shares?

Superhero charges $2 per ASX trade, the lowest flat fee among the platforms covered. However, Superhero uses a custodian model, not CHESS sponsorship. For a CHESS-sponsored option, Stake charges $3 per ASX trade. Both have no monthly or inactivity fees. CommSec charges $5 per trade if you link a CDIA account, which also provides CHESS sponsorship.

Can I buy US shares as an Australian beginner?

Yes. Most platforms covered here offer US shares. CommSec, Pearler, Stake, Superhero, and Sharesies all support US trading. Fees vary: Stake charges $3 per US trade with a 0.55% FX spread, Pearler charges $6.50 with a 0.50% spread, and Superhero charges $2 with a 0.50% spread. Spaceship offers US-only portfolios but does not let you pick individual stocks.

What is the difference between a custodian broker and CHESS sponsorship?

With CHESS sponsorship, you are the legal owner of the shares and your name appears on the company's register. With a custodian broker (like Superhero or Sharesies), the broker holds the shares in a pooled account on your behalf. Custodian models are cheaper to operate, which is why they offer lower brokerage. The risk is small for most beginners, but CHESS gives you direct ownership and easier transferability.

Should I avoid brokers that offer CFDs?

Yes, as a beginner. CFDs (contracts for difference) are leveraged derivatives, not real shares. Platforms like eToro offer $0 commission on stocks to attract users, then make money through CFD trading and wide spreads. CFD trading carries high risk and can result in losing more than your initial deposit. Stick to brokers that offer real share ownership through CHESS or custodial models.

Guide · share trading

Best Australian broker for beginners: where to actually start

If you're buying your first share, here's how to choose — and why the cheapest broker isn't always the right answer for someone just starting out.

By Investmatch Research Team · Last updated 15 May 2026

What is the best Australian broker for a beginner?

If you are reading this, you have probably heard that investing is something you should do, but every platform claims to be the one. The real question is not which broker is "best" in a vacuum. It is which one matches where you actually are right now: your budget, your confidence level, and whether you even know what CHESS sponsorship is yet.

This guide breaks it into three tiers. Pick the one that fits.

Do you actually need CHESS sponsorship as a beginner?

CHESS (Clearing House Electronic Subregister System) is the ASX system that records your name on the company's share registry. If a broker is CHESS-sponsored, you are the legal owner of those shares. If they are a custodian model, the broker holds the shares on your behalf, and your name is not on the register.

For a first-time investor putting in $500, does this matter? In practice, most people never need to transfer shares out of a custodian in their first year. But there are two scenarios where CHESS matters: if the broker goes under (custodian assets are generally ringfenced, but you could face delays), and if you ever want to move to another broker without selling everything.

The platforms covered here fall into three models:

Full CHESS sponsorship: CommSec (CBA-owned, $5 minimum brokerage with a CDIA linked account).
Mixed model: Pearler ($6.50 ASX trades) and Stake ($3 ASX trades) offer CHESS for ASX holdings but use custodial arrangements for US shares.
Custodian-only: Superhero ($2 trades), Sharesies (1.9% fee capped at $6), Raiz ($5.50/month), and Spaceship ($3/month).

If you plan to buy ASX shares and hold them for years, CHESS is worth having. If you are testing the waters with small amounts, a custodian is fine to start.

Why micro-investing apps are not brokers (and why that matters)

Raiz and Spaceship Voyager are often called "brokers" but they are not. They are managed fund platforms. You do not buy individual company shares. You buy units in a portfolio that Raiz or Spaceship manages.

Raiz charges $5.50 per month (no brokerage) and rounds up your spare change into diversified ETF portfolios. Spaceship charges $3 per month and offers US-focused portfolios with fractional shares. Neither lets you pick individual ASX stocks. Neither offers CHESS sponsorship.

These are excellent for someone who wants to build a savings habit without thinking about it. But if you ever want to own BHP or Commonwealth Bank shares in your own name, you will need a real broker. Think of Raiz and Spaceship as training wheels, not the bike.

Tier 1: Total beginner, low stakes (micro-investing)

If you have less than $1,000 and you are not sure you will stick with it, start here.

Raiz is the most established option. For $5.50 a month you get automatic round-ups, recurring deposits, and a choice of pre-built ETF portfolios. No brokerage, no minimum trade size. You can start with $5.

Spaceship Voyager costs $3 a month and focuses on growth-oriented US portfolios. It is simpler than Raiz but more limited: no ASX exposure, no kids accounts, no SMSF.

The catch with both: the monthly fee eats a meaningful percentage of a small balance. On a $200 account, $5.50 a month is 33% annualised. Once your balance hits $2,000-$3,000, the fee becomes negligible. Until then, you are paying for the habit, not the returns.

Tier 2: Want real CHESS shares from day one

You have $1,000-$5,000. You want to own actual shares in your name. You are comfortable placing your own trades.

Stake is the cheapest CHESS-sponsored option for ASX at $3 per trade (0.01% above that). No monthly fees, no inactivity fees. US trades are $3 with a 0.55% FX spread. The trade-off: no auto-invest, no DRP (dividend reinvestment), and no kids accounts. It is a clean, low-cost execution platform.

Pearler costs $6.50 per trade but offers features Stake does not: auto-invest with rebalancing, DRP, kids accounts, and SMSF support. The community angle (you can see what others are buying) is either helpful or distracting depending on your personality. For a beginner who wants to set and forget, Pearler's auto-invest is the standout feature.

Superhero charges just $2 per trade, the lowest headline number here. But it is a custodian model, not CHESS. You do not own the shares in your name. Superhero also offers auto-invest and kids accounts. For a beginner who cares about cost above all else and is not worried about CHESS, $2 trades are hard to beat.

Tier 3: Future-proof full-service

You have $5,000+ and you want the full toolkit: CHESS, options, DRP, SMSF, margin lending, and the stability of a big bank.

CommSec is the default for a reason. With a linked CDIA, ASX trades cost $5 (0.12% above that). Without CDIA, trades start at $29.95. CommSec offers CHESS sponsorship, options trading, US fractional shares, kids accounts, SMSF, and zero monthly fees. It also runs occasional promotions: a current offer gives new customers 30 free trades up to $50,000 each (May-Nov 2026).

The downside? The interface feels like internet banking from 2012. The FX spread on US trades is 0.55%, same as Stake. And there is no auto-invest feature, so every trade is manual.

Bell Direct is another full-service option worth considering for beginners who want CHESS sponsorship with a lower brokerage threshold than CommSec's standard pricing.

Putting it together: a decision framework

Your situation	Start here
Under $1,000, want to build the habit	Raiz ($5.50/mo) or Spaceship ($3/mo)
$1,000-$5,000, want CHESS, lowest cost	Stake ($3/trade)
$1,000-$5,000, want auto-invest and CHESS	Pearler ($6.50/trade)
$1,000-$5,000, don't care about CHESS, want cheapest	Superhero ($2/trade)
$5,000+, want full service and CHESS	CommSec ($5/trade with CDIA)

One final note: avoid any platform that pushes CFDs (contracts for difference) unless you fully understand leverage and the risks. eToro offers $0 commission on stocks but makes its money through CFDs and wide spreads. For a beginner, CFD trading is gambling with extra steps. Stick to the platforms above that offer real shares, not derivatives.