Choosing an investment broker isn’t just about finding someone who can place trades—it’s about selecting a trusted partner who aligns with your financial goals, risk tolerance, and investment style. Whether you’re new to investing or considering switching providers, asking the right questions upfront can save you from unexpected fees, poor service, or misaligned advice.
Below are the top five questions every Australian investor should ask before hiring an investment broker.
1. Are You Licensed and Regulated by ASIC?
The first and most important question to ask any broker is whether they are licensed by the Australian Securities and Investments Commission (ASIC). Regulation ensures the broker is held to Australian legal and financial standards—giving you peace of mind that your money is handled ethically and professionally.
Why it matters:
Unregulated or overseas-based brokers may not be held accountable under Australian law. If things go wrong, you may have little recourse.
What to do:
Request the broker’s AFSL (Australian Financial Services Licence) number and verify it through the ASIC Connect Register. If they can’t provide it, that’s a major red flag.
2. What Types of Investments Do You Offer Access To?
Brokers differ in the types of financial products and markets they provide. Some focus purely on Australian shares, while others offer access to global markets, ETFs, cryptocurrencies, forex, options, and even managed funds.
Why it matters:
If you plan to diversify your portfolio or invest in specific asset classes, your broker needs to support your strategy from day one.
What to ask:
- Can I invest in both Australian and international markets?
- Do you offer access to ETFs, crypto, bonds, or managed funds?
- Are SMSF or trust account services available if I need them?
Choosing a broker that offers the right investment mix ensures your strategy won’t be limited later on.
3. What Are Your Fees and How Are They Structured?
Before signing up, ask for a full breakdown of the broker’s fee structure. While many advertise low or no commissions, there can still be platform fees, FX conversion charges, or inactivity costs hiding in the fine print.
Why it matters:
High or hidden fees can quietly erode your returns—especially if you trade frequently or hold international assets.
What to ask:
- What’s the fee per trade (shares, forex, crypto)?
- Are there any account-keeping or inactivity fees?
- How much do I pay for FX conversions or withdrawals?
- Do you charge for premium tools or data feeds?
Pro tip: Don’t just chase the lowest cost—look for the best overall value, including tools, support, and platform reliability.
4. What Platform and Tools Do You Offer?
The trading platform is your main interface with the markets. Whether it’s a mobile app, desktop software, or web platform, it should be intuitive, responsive, and packed with the tools you need.
Why it matters:
A clunky, confusing interface can lead to costly mistakes—while a user-friendly platform helps you invest more confidently.
What to ask:
- Do you offer mobile and desktop access?
- Is real-time data included?
- Can I create watchlists and access charting tools?
- Do you offer a demo account so I can test the platform?
A well-designed platform can enhance your decision-making, especially if you’re just starting out.
5. What Kind of Support and Education Do You Provide?
No matter your experience level, questions and issues will come up. That’s where solid customer service and quality education resources make a big difference.
Why it matters:
When markets move fast or technical issues arise, timely support is crucial. Educational materials also help you grow as an investor.
What to ask:
- Is support available via phone, chat, or email—and during what hours?
- Is the support team based in Australia or overseas?
- Do you offer webinars, beginner tutorials, or investment guides?
Brokers that support your learning journey and offer fast, helpful service are far more likely to earn your long-term trust.
Final Thoughts: Choose a Broker That Suits You—Not Just the Market
Your investment broker plays a central role in your financial journey. By asking the five questions above, you’ll ensure that you’re not just selecting someone who can execute trades, but a provider who supports your goals, values transparency, and offers the tools and support you need to succeed.
Every investor is different—so choose the broker that fits you, not just the market.
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