CommSec’s profit increased by 36% to $155.7 million, driven by strong growth in online brokerage activity. Revenue rose to $288.7 million in the 12 months to 30 June, with over 40% of Australian investors now using the platform.
This upswing in activity aligns with a broader market rebound that has energised both retail and institutional investors. Since reaching a low point in October 2022, the S&P 500 has risen by 85% and the ASX 200 is up 40%, fuelling investment across a wide range of assets, from ETF gold products to technology shares. Established to help everyday Australians trade online, CommSec has solidified its position as a leading platform due to strong interest in equity markets.
CommSec is not the only broker to benefit. Ord Minnett increased its revenue to $278.4 million, with profit reaching $32.9 million. Shaw and Partners reported $183.4 million in revenue and $6 million in profit. Taylor Collison nearly doubled its profit to $10.2 million. Euroz Hartleys, which focuses on Western Australia, recorded net earnings above $11 million. Despite heavy trading, brokers say that increased volatility and inflation have led to uneven market activity.
The trading surge reflects global patterns. US-based Robinhood posted a 65% revenue increase, while major players like Charles Schwab and Interactive Brokers recorded strong double-digit growth. In Australia, although digital low-cost brokers grew in popularity during the pandemic, CommSec retains a leading position with 3 million customers and a 37% jump in new accounts last year. Not all brokers have shared in the growth. AUSIEX reported only $2.9 million in profit, with only modest gains in revenue.
While platforms are currently benefitting from high investor engagement, the long-term outlook remains uncertain. Market resilience, shifting investor behaviour and rising competition could all influence future performance. For now, online brokers are enjoying strong momentum, but ongoing global challenges may change the landscape ahead.
