Betashares Direct vs Stake (2026):
Australian Broker Comparison
The choice comes down to two things: what you want to buy, and how you feel about CHESS. Betashares Direct is the cleanest zero-brokerage setup for ASX ETF investors who want auto-invest and fractional units. Stake is the call if you want US stocks alongside your ASX holdings, or if CHESS sponsorship is a firm requirement and you are willing to pay A$3/trade for it.
The short version
| Category | Betashares Direct | Stake |
|---|---|---|
| Brokerage | A$0 (all ASX ETFs + 400+ shares) | A$3/ASX trade · US$3/US trade |
| Markets | ASX only | ASX + US (NYSE, NASDAQ) |
| CHESS sponsorship | No — custodial model | Yes (ASX) · custodial for US |
| Fractional investing | Yes — from A$10 (ASX ETFs) | Yes — A$10 ASX · US$10 US stocks |
| Auto-invest / recurring | Yes — dedicated Auto-Invest feature | Recurring funding only (no ASX auto-buy) |
| FX cost | N/A (ASX only) | ~0.55% per AUD-to-USD funding event |
| Platform fee | A$0 (self-directed) | A$0 standard · A$17/month Stake Black |
| Cash interest (AUD) | Retained by Betashares | 0% on standard accounts |
| Regulation | AFSL 341181 (Betashares Capital) | ASIC-548196 (Stakeshop Pty Ltd) |
Betashares Direct wins on cost for ASX-only ETF investors — zero brokerage and auto-invest make it the default for passive accumulation. Stake wins when you want US market access alongside ASX, or when CHESS sponsorship in your own name matters enough to pay A$3/trade for it.
What you actually pay — and the break-even math
The brokerage gap is real. How much it matters depends entirely on trade frequency and whether you need US access.
| Fee | Betashares Direct | Stake |
|---|---|---|
| Commission per ASX trade | A$0 | A$3 (up to A$30,000) |
| Commission per US trade | Not available | US$3 (up to US$30,000) |
| Above-threshold trades | Not available | 0.01% (above A$30,000 / US$30,000) |
| FX markup | N/A (ASX only) | ~0.55% per AUD-to-USD funding event |
| Annual custody fee | 0% (self-directed) | 0% |
| Monthly platform fee | A$0 (self-directed) | A$0 (standard) |
| Managed Portfolio fee | A$3/month under A$10k · then 0.20% p.a. (tiered to 0.14% above A$2m) | N/A |
| Custom Portfolio fee | A$4/month under A$10k · then 0.20% p.a. | N/A |
| Stake Black (optional) | N/A | A$17/month (advanced research tools) |
| Minimum buy order | A$10 (fractional) | A$10 (ASX fractional) · A$500 (first ASX parcel) |
| Auto-invest minimum | A$100 per recurring order | No ASX auto-invest |
Monthly ASX ETF contributions
- 12 monthly buys of A$500 A$0/year brokerage
- 24 fortnightly buys of A$250 A$0/year brokerage
- Auto-invest handles the scheduling — no manual action required
- Fractional units mean every dollar contributed is deployed immediately
- 12 monthly buys × A$3 = A$36/year brokerage
- 24 fortnightly buys × A$3 = A$72/year brokerage
- No ASX auto-invest — each order must be placed manually
- CHESS sponsorship is the structural trade-off for paying that A$36+
Stake’s 0.55% FX fee applies per funding event, not per trade. Fund once, trade multiple times — the FX cost is fixed to how often you move AUD into your US wallet, not how many US stocks you purchase.
- Fund A$5,000 once: FX cost ~A$27.50, then A$3/US trade thereafter
- Fund A$10,000 once: FX cost ~A$55, then A$3/US trade thereafter
- Batching AUD-to-USD funding in larger, less frequent top-ups keeps this cost manageable
- Weekly small conversions stack up — discipline on funding frequency matters here
What you can actually buy
This is where the two platforms diverge most sharply. One is ASX-only by design; the other gives you ASX and US markets in the same account.
| Asset | Betashares Direct | Stake |
|---|---|---|
| ASX ETFs | Yes — all 350+ ASX-listed ETFs | Yes — 2,500+ ASX securities |
| ASX individual shares | Yes — 400+ ASX shares | Yes — included in 2,500+ ASX securities |
| US stocks and ETFs | No | Yes — 6,000+ (NYSE, NASDAQ) |
| US government bonds | No | Yes (via Wall St account) |
| EU-listed stocks or ETFs | No | No |
| Fractional ASX investing | Yes — from A$10 | Yes — from A$10 |
| Fractional US investing | N/A | Yes — from US$10 |
| CFDs | No | No |
| Crypto | No (except ASX-listed crypto ETFs) | No (product discontinued) |
| Options | No | US exchange-traded options (Stake Options feature) |
Betashares Direct’s ASX-only scope does not mean you can only invest in Australian companies. The platform gives access to ASX-listed global ETFs including Betashares BGBL (global shares ex-AU), NDIQ (Nasdaq 100), HGBL (hedged global shares), and third-party iShares and Vanguard global funds listed on ASX. You get international diversification without direct currency conversion or US account registration. The limitation is that you are always buying the ETF wrapper — not the underlying US or global stock directly.
Account types, opening, and platform tools
| Feature | Betashares Direct | Stake |
|---|---|---|
| Individual account | Yes | Yes |
| Joint account | Yes (up to 4 holders) | Yes |
| SMSF account | Yes | Yes |
| Trust account | Yes | Yes |
| Company account | Yes | Yes |
| Kids account | Yes (informal trust structure) | No |
| Non-AU residents | AU tax residents only | AU residents and NZ nationals in AU only |
| Auto-invest / recurring buys | Yes — weekly, fortnightly, monthly (ASX) | US Wall St recurring buys only — no ASX auto-buy |
| Custom portfolio builder | Yes — pre-set % allocations across multiple ETFs | No |
| Managed portfolios | Yes (Managed and Custom Portfolio options) | No |
| Demo / paper trading | No | No |
| Web + iOS + Android | Yes | Yes |
- Set a schedule (weekly, fortnightly, or monthly) into up to five Betashares ETFs
- Minimum A$100 per recurring order; funded from linked bank or cash wallet
- Zero brokerage on every automated order — no fee per execution
- Fractional units mean no cash sits idle between contribution dates
- Pair with the Custom Portfolio Builder to auto-rebalance across multiple ETFs in one order
- Wall St recurring buys available for US equities and ETFs — not for ASX
- ASX orders require manual placement on Stake — no scheduled ASX buy feature
- Stock comparison tools, stock return calculator, and The Stake Desk research content included
- Stake Black (A$17/month): unlocks analyst ratings, price targets, and full financial statements
- Extended-hours trading available for US-listed securities
CHESS vs custodial — what it means for your holdings
Both brokers are ASIC-regulated and hold client funds separately from operational accounts. The key difference is how your ASX holdings are legally registered — and what that means if a broker ever stopped operating.
| Safety factor | Betashares Direct | Stake |
|---|---|---|
| ASIC regulated | Yes | Yes |
| AFSL | Betashares Capital Ltd — AFSL 341181 | Stakeshop Pty Ltd — ASIC 548196 |
| ASX holding structure | Custodial — no individual HIN in your name | CHESS-sponsored — individual HIN via FinClear (AFSL 246842) |
| US holding structure | N/A | Custodial via DriveWealth (US clearing partner) |
| Client fund segregation | Yes — client cash held in trust (Citigroup Pty Ltd) | Yes — AUD held in NAB client-money trust account |
| AU investor compensation scheme | None — no AU government scheme exists for brokers | None for AU assets |
| US cash protection | N/A | FDIC up to US$250,000 (Citibank sweep via DriveWealth) |
| Publicly listed | No (private) | No (private) |
- Custodial model: Assets are held by Citigroup Pty Ltd as custodian, with Betashares holding the CHESS HIN. You hold beneficial ownership — not registered title in your own name on CHESS.
- IDPS-like scheme: Betashares Direct operates as an IDPS-like scheme governed by a PDS — a different legal structure to a standard CHESS-sponsored broker account.
- Cash interest: Betashares retains all interest earned on uninvested cash in your wallet. You receive no share of this income.
- CHESS sponsorship (ASX): Every ASX-traded security is registered in your name via a unique HIN through FinClear. If Stake ceased operating, ASX holdings are transferable in-specie without requiring Stake’s involvement.
- US custody: US holdings are custodial via DriveWealth LLC. Uninvested USD cash sits at Citibank under FDIC coverage up to US$250,000.
- 2021 platform event: Stake experienced access issues during the 2021 meme-stock volatility spike due to limits imposed by clearing partner DriveWealth. No similar events have recurred since.
How to reach someone when it matters
| Support channel | Betashares Direct | Stake |
|---|---|---|
| In-app messaging | Yes | Yes (ticketing + chatbot) |
| Yes | Yes — support@hellostake.com | |
| Phone | Yes — Sydney-based team | Yes — (02) 8294 6149 |
| Live chat | Yes (in-app) | Digital chatbot with human escalation |
| Hours | Mon–Fri, 9:00am–5:00pm AEST/AEDT | Mon–Fri, 9:30am–4:30pm AEST/AEDT (trading days only) |
| Team location | Sydney, Australia | Sydney, Australia |
Who each broker actually fits
- Passive investors who only want ASX ETFs — zero brokerage makes every contribution cheaper, every time.
- Investors who want proper auto-invest: set-and-forget weekly or monthly buys with zero manual intervention and zero fees per order.
- Fractional investors building small positions from A$10 — no cash sits idle between contributions.
- Households needing Kids accounts alongside individual or joint accounts — widest account type coverage of the two.
- Investors who are comfortable with custodial holding and do not require direct CHESS registration in their own name.
- Investors who want ASX and US market exposure in one account — Stake is the most cost-accessible dual-market AU broker.
- Investors for whom CHESS sponsorship is non-negotiable — your ASX holdings are registered in your own name with a unique HIN.
- Active investors who want US individual stock access, extended-hours trading, and basic research tooling.
- Investors who can batch their AUD-to-USD funding efficiently — the 0.55% FX cost per event is manageable with discipline.
- Research-oriented investors considering Stake Black for analyst ratings and price targets (A$17/month optional).
CHESS vs custodial is a recurring debate in Australian investing communities. The practical question is: does it actually matter for your strategy? For most long-term passive ETF investors, the functional day-to-day difference is small — both brokers segregate client funds, both are ASIC-regulated, and in-specie transfer processes exist under both models. Where CHESS becomes meaningful is in a broker-failure scenario: CHESS-sponsored holdings are registered in your name and can be transferred to another broker without the failed broker’s involvement. Custodial holdings require the custodian’s administrative process to recover.
The cost-adjusted answer: if you invest in ASX ETFs only on a monthly schedule, saving A$36/year in brokerage on Betashares Direct may outweigh the custodial trade-off for most investors. If CHESS sponsorship is a firm requirement — or if you want US markets in the same account — Stake is the answer, and A$3/trade is the cost of that structure.
Both platforms are available online. Account opening takes under 15 minutes for most applicants. Check each broker’s current fees and PDS before funding.
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Frequently asked questions
Is Betashares Direct free to use?
Yes — Betashares Direct charges zero brokerage on all ASX ETFs and 400+ ASX shares. There is no platform or custody fee on self-directed accounts. The catch is that Betashares retains all interest income on your uninvested cash balance, so that cash earns nothing for you directly. Managed and Custom Portfolio accounts carry a monthly fee (A$3–A$4/month under A$10,000, then a percentage tier above that). Check the current PDS for portfolio account fee details before using those features.
Does Stake offer CHESS sponsorship?
Yes — Stake AUS is CHESS-sponsored for ASX-traded securities via FinClear Execution Ltd (AFSL 246842). Each client receives a unique HIN (Holder Identification Number), meaning ASX shares and ETFs are registered in your name directly on the CHESS system. If Stake were to cease operating, your ASX holdings could be transferred to another CHESS-sponsored broker without Stake’s involvement. US-listed holdings are custodial, held via DriveWealth — CHESS is an ASX-specific registration system and does not apply to US markets.
Can I buy US stocks on Betashares Direct?
No. Betashares Direct is an ASX-only platform. You can access international market exposure indirectly through ASX-listed global ETFs — for example Betashares NDIQ (Nasdaq 100), BGBL (global shares ex-AU), HGBL (hedged global shares), or third-party Vanguard and iShares global funds listed on the ASX. But there is no direct access to US exchanges or international stock markets. If buying individual US stocks or US-listed ETFs is part of your plan, Stake is the better fit.
How does the FX cost on Stake work?
Stake charges approximately 0.55% (55 basis points) when you move AUD into or out of the US dollar wallet. This fee applies per funding event — not per trade. If you fund A$5,000 once and then place 10 US stock orders, you pay the 0.55% once on the funding transfer (roughly A$27.50), not on each of the 10 trades. Batching AUD-to-USD top-ups in larger, less frequent amounts keeps this cost manageable. Frequent small conversions stack up quickly and erode the cost advantage of Stake’s low per-trade fee.
Which broker is better for a passive ETF-only investor in Australia?
For a passive investor who only wants ASX-listed ETFs, Betashares Direct is typically the better fit. Zero brokerage, fractional investing from A$10, and auto-invest on a weekly or monthly schedule cover every core passive strategy at no trading cost. Stake charges A$3/trade on ASX and has no dedicated ASX auto-invest feature — a monthly contribution plan therefore costs A$36/year more in brokerage than the same plan on Betashares Direct. The structural trade-off is that Betashares Direct is custodial and your holdings are not CHESS-sponsored in your own name. If that trade-off is acceptable, Betashares Direct is the cheaper passive vehicle.
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