Profits at CommSec, Australia’s largest online stockbroker, have surged by 36 per cent to $155.7 million. This rise comes as the brokerage benefited from heightened trading activity driven by volatile global markets over the past year. CommSec, owned by the Commonwealth Bank, reported revenues of $288.7 million for the year ending June 30, up from $227.9 million the previous year. The company stated that over 40 per cent of Australian investors are now utilising its platform.
CommSec is Australia’s largest online stockbroker, providing trading and investment services to retail investors. As a subsidiary of Commonwealth Bank, CommSec offers a platform for trading shares, exchange-traded funds (ETFs), and other investment products. Similar trends were observed across other major stockbroking firms, including Ord Minnett, Shaw and Partners, Taylor Collison and Euroz Hartleys, reflecting strong investor demand. Ord Minnett reported revenues rising from $234.9 million to $278.4 million, with profits increasing from $23.8 million to $32.9 million. Euroz Hartleys saw net profit rise to $11.15 million from $6.75 million the previous year, with revenue increasing to $98.4 million from $88.7 million.
James Fowle, CommSec’s executive general manager, attributed the sustained and elevated trading volumes to global market volatility triggered by major events, such as the announcement of US tariffs. CMC Markets, the local subsidiary of a British financial services firm, also saw operating revenues rise to $136.7 million, though net profit dipped slightly. Not all brokerages experienced the same boom; AUSIEX reported a slim profit of $2.9 million despite increased brokerage income.
While the entry of low-fee brokers posed a challenge, CommSec has maintained its dominance. The platform reported 3 million customers last year, with new accounts increasing by 37 per cent over the preceding 12-month period. The broader market uptrend, with the S&P 500 surging 85 per cent since October 2022 and the ASX 200 up 40 per cent, has bolstered investor optimism and trading enthusiasm.
