Share Trading comparison
Interactive Brokers Australia vs Pepperstone
Interactive Brokers is a full-service broker offering real ASX and US shares, while Pepperstone is a CFD provider — you never actually own the underlying stock. That single difference dictates everything else: CHESS sponsorship, tax reporting, dividend entitlements and market access. If you want to hold real shares on the ASX, Interactive Brokers is the only option here.
Choose
Interactive Brokers Australia
if…
- ›You want to buy and hold real ASX or US shares under your own HIN (custodial model, but with individual SRNs for ASX holdings)
- ›You trade international markets — IBKR offers direct access to 30+ countries including Canada, Japan, Hong Kong and Europe
- ›You need a CGT report, Australian tax statement and Sharesight integration for end-of-year compliance
- ›You trade options, bonds or want fractional US shares — Pepperstone offers none of these
- ›You want the lowest FX spreads in the market (0.00002% vs 0.5%) for currency conversion
Choose
Pepperstone
if…
- ›You only trade CFDs and have no interest in owning the underlying asset or receiving shareholder benefits
- ›You want zero brokerage on US stocks (US$0.02 minimum) and don't mind the CFD wrapper
- ›You prefer paying with PayPal, Apple Pay, Google Pay or credit/debit cards for deposits
- ›You want free real-time market data included — IBKR charges for most live data feeds
- ›You're a short-term leveraged trader who values Pepperstone's 24/5 support and fast withdrawals via digital wallets
Where they differ
| Fact | Interactive Brokers Australia | Pepperstone |
|---|---|---|
| Ownership structure | Real shares (CHESS custody with SRNs) | CFDs only — no share ownership |
| ASX brokerage | $6 minimum + 0.08% | $5 minimum + 0.07% (but CFDs only) |
| US brokerage minimum | US$1.00 | US$0.02 (CFD) |
| FX spread (AUD/USD) | 0.00002% | 0.5% |
| Australian tax statement | Yes | No — CFD trading is not reported as share disposals |
Verdict
Choose Interactive Brokers if you want real shares; choose Pepperstone only if you're happy trading CFDs with no ownership.
All data points side-by-side
Every verified fact for both platforms. Differences are highlighted.
| Field | Interactive Brokers Australia | Pepperstone |
|---|---|---|
| account structure | ||
| CHESS sponsorship model | custodian | — |
| Individual HIN | No | — |
| Individual account | Yes | Yes |
| Joint account | Yes | Yes |
| Company account | Yes | Yes |
| Trust account | Yes | Yes |
| SMSF account | Yes | No |
| Kids / minor account | No | 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 | US, Canada, UK, Ireland, Germany, France, Netherlands, Belgium, Spain, Italy, Switzerland, Austria, Sweden, Norway, Denmark, Finland, Poland, Czechia, Hungary, Israel, Hong Kong, Japan, Singapore, China (Stock Connect), South Korea, India, Indonesia, Thailand, Malaysia, Australia, New Zealand, South Africa, Mexico | 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 | Yes | Yes |
| Managed funds | No | No |
| Bonds supported | Yes | No |
| IPO access | No | No |
| costs hidden | ||
| FX spread (AUD/USD) | 0.002% | 50% |
| FX spread (other currencies) | 0.002% | 50% |
| Holds USD account | Yes | Yes |
| FX currency switch trick | No | No |
| Market data fees | — | $0/month |
| Conditional order fees | $0 | $0 |
| Corporate action fees | Corporate action processing is generally fee-free for standard events (dividends, splits, mergers). Some voluntary corporate actions and ADR pass-through fees apply per the published fee schedule. Mandatory reorganisations are processed at no charge. | 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 | $6 | — |
| ASX brokerage percentage | 0.08% | — |
| US brokerage minimum | US$1 | — |
| US brokerage percentage | 0.05% | — |
| 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 | $0 | — |
| identity and trust | ||
| Legal entity name | Interactive Brokers Australia Pty Ltd | Pepperstone Group Limited |
| AFSL number | 453,554 | 414,530 |
| Year founded | 1,978 | 2,010 |
| Parent / ownership | Interactive Brokers Group, Inc. (NASDAQ: IBKR) | 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 | $0 | $0 |
| Minimum subsequent purchase | $0 | $0 |
| Deposit methods | Bank transfer (EFT), BPAY, International wire (SWIFT) | PayID, BPAY, bank transfer, debit card, credit card, PayPal, Apple Pay, Google Pay, Neteller, Skrill |
| Settlement period | T+2 for ASX, T+1 for US equities | 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 | 1-3 business days for AUD EFT; same day possible for AUD instant transfers within Australia | 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 | Yes | Yes |
| Demo account | Yes | Yes |
| Free real-time market data | No | Yes |
| Free research reports | Yes | Yes |
| 2FA support | authenticator app | authenticator |
| Customer support channels | phone, email, live chat, in-app secure message | phone, email, live chat |
| Support hours (AU time) | 24 hours, Monday to Friday (Sydney) — local AU phone support during business hours; global desks cover overnight | 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 | video + courses | video + courses |
| tax and reporting | ||
| Australian tax statement | Yes | No |
| Distribution component breakdown | No | No |
| CGT calculator / report | Yes | 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 | Yes | No |
| Auto-invest sophistication | multiple | none |
| DRP (dividend reinvestment) | No | No |
| After-hours / overnight trading | Yes | Yes |