Best ETF brokers in 2025

What is an ETF or Exchange Traded Fund?

An ETF (Exchange Traded Fund) is a financial product that allows you to invest in a collection of assets in a single transaction. It is an index fund listed on the stock exchange, the objective of which is to replicate the performance of a benchmark index, such as the S&P/NZX 50 Index or the MSCI World.

Unlike traditional actively managed funds, an ETF follows passive management: it replicates the composition of the index it tracks, with lower fees compared to active funds. It is continuously traded on the markets, just like a share, which allows investors to buy or sell their shares at any time of the trading day.

ETFs are very popular due to their many advantages:

• Diversification immédiate : en achetant un ETF, l’investisseur se positionne sur plusieurs actifs en une seule transaction.
• Frais réduits : les frais de gestion des ETF sont généralement bien inférieurs à ceux des fonds d’investissement classiques.
• Accessibilité : il est possible d’investir dans des ETF avec un montant modeste, et certains courtiers proposent des achats fractionnés.
• Transparence : la composition des ETF est généralement accessible en temps réel, permettant aux investisseurs de savoir exactement dans quoi ils investissent.

Advantages of ETFs

ETFs offer instant diversification: a single transaction allows you to invest in a set of assets reflecting the composition of the tracked index. For example, an ETF replicating the NZX 50 allows access to the 50 largest companies in New Zealand, while an ETF based on a specific sector gives exposure to leading listed companies in that sector.

What is an ETF broker?

An ETF broker is an online platform that allows investors to buy and sell Exchange Traded Funds (ETFs). These platforms are designed to suit a range of investment strategies — from long-term wealth building to short-term trading.

In New Zealand, there are two main types of brokers you can use to invest in ETFs:

• Direct investment brokers, which let you buy and hold real ETFs through a standard brokerage or investment account (such as a custodial platform or a CHESS-style service for AU/NZ ETFs).
• CFD brokers, which allow you to speculate on ETF price movements without owning the underlying asset.

Here’s a comparison between these two types of ETF brokers:

The right type of broker depends on your investment goals:

• If you’re a long-term, passive investor, a broker that provides access to real ETFs through a traditional investment account (like Sharesies, Smartshares, Hatch, or InvestNow) is ideal. You benefit from actual ownership and easier long-term tracking, especially for NZ and Australian ETFs.
• If you prefer short-term trading with leverage and higher risk/reward potential, CFD brokers like eToro, Plus500, or IG might appeal. But be aware: these platforms are speculative, and losses can exceed your initial investment.

Comment choisir un broker ou courtier ETF ?

Le choix d’un courtier ETF est une étape essentielle pour investir efficacement en bourse. Il existe des courtiers permettant d’acheter directement des ETF et des brokers proposant des CFD sur ETF. Chaque type de plateforme répond à des stratégies d’investissement différentes. Voici les critères à considérer pour faire le bon choix.

1. L’accessibilité aux ETF

Tous les courtiers ne proposent pas le même accès aux ETF. Il est important de vérifier :

• Les ETF disponibles : certains courtiers offrent une large sélection d’ETF physiques, tandis que d’autres proposent uniquement des CFD sur ETF.
• L’accès aux ETF internationaux : certains brokers permettent d’investir sur des ETF européens et américains, tandis que d’autres restreignent leur offre à certaines zones géographiques.
• L’éligibilité au PEA : si vous souhaitez optimiser votre fiscalité, privilégiez un courtier proposant des ETF compatibles avec un Plan d’Épargne en Actions (PEA).

2. Courtage et frais de gestion

Les frais influencent directement la rentabilité de votre investissement. Voici les principaux coûts à comparer :

• Order fees: commission applied to each purchase or sale of ETFs. Some stock brokers offer free orders, while CFD brokers often apply a spread (difference between the purchase and sale price).
• Management fees: levied annually by the ETF issuer (generally between 0.05% and 0.50%).
• Inactivity fees: some brokers charge fees if no order is placed over a given period, particularly CFD trading platforms.
• Conversion fees: for ETFs listed in foreign currencies, there may be exchange fees on transactions.

3. Ergonomics and Platform Tools

Whether you are a beginner or experienced investor, an intuitive and efficient platform is essential. Check for:

• The quality of research tools and filters to easily find ETFs.
• The existence of a mobile application to manage your investments in real time.
• The availability of advanced charts and technical indicators for active investors, especially for those trading CFDs.

4. Type de compte et fiscalité

The type of account you use to invest in ETFs will influence how your returns are taxed in New Zealand:

• Standard investment account: Platforms like Sharesies, Hatch, InvestNow, and Smartshares offer access to a wide range of ETFs. There is no capital gains tax (CGT) in New Zealand, but tax may still apply depending on the type of investment and your total holdings. Foreign ETFs (such as US or global funds) may fall under the Foreign Investment Fund (FIF) regime, which applies a 5% deemed income calculation once your total offshore holdings exceed NZD $50,000.
• No equivalent to the French PEA: New Zealand does not offer any tax-advantaged investment account specifically for ETFs. Tax efficiency relies on choosing the right structure (NZ-domiciled vs foreign-domiciled funds) and understanding how income is assessed.
• CFD trading accounts: If you trade ETFs via CFDs (Contracts for Difference), profits are treated as income and are fully taxable under standard income tax rules. Losses may be deductible if the trading activity is considered part of a regular or professional strategy.

5. Leverage and Risk Management

If you wish to use leverage, only brokers offering ETF CFDs will allow you to amplify your positions (generally with a leverage of x2 to x5). However, the risk of loss is increased, as leverage can also multiply losses. Make sure your broker offers:

• Protections contre le solde négatif pour éviter de perdre plus que votre capital initial.
• Ordres stop-loss et take-profit pour gérer efficacement vos positions.

6. The quality of customer service

Good customer service is essential, especially for active investors. Before opening an account, find out about:

• The available contact methods (phone, online chat, email).
• The availability of support (opening days and hours).
• The quality of the educational resources offered (guides, webinars, tutorials).

7. Security and Regulation

To invest with confidence in New Zealand, it’s essential to choose a broker that is properly regulated. Here's what to look for:

• FMA (Financial Markets Authority) – The primary regulator for financial services in New Zealand. Check if the broker is registered on the Financial Service Providers Register (FSPR) and is compliant with New Zealand laws.
• ASIC (Australia) – Many platforms accessible to New Zealand residents operate under Australian regulation, which is accepted under the Trans-Tasman Mutual Recognition arrangement.
• Other trusted global regulators for international brokers include:
• FCA (UK)
• BaFin (Germany)
• CySEC (Cyprus)
• SEC / FINRA (USA)

A reputable broker should offer:

• Clear investor protections
• Client fund segregation
• Fee transparency
• Access to dispute resolution, such as through the Financial Services Complaints Ltd (FSCL) or IFSO Scheme

Which ETF broker is best for a beginner?

If you're just starting out with ETF investing, it's important to choose a broker that is simple to use, offers low fees, and provides educational tools to help you learn as you go. The right platform can make your first investing experience smoother and more rewarding.

Key features to look for in a beginner-friendly ETF broker:

• Easy-to-use interface that’s intuitive and beginner-friendly
• Low or zero brokerage fees on ETF trades
• Wide range of available ETFs, including low-cost index funds
• No need for a special tax-advantaged account — standard investment platforms suffice
• Responsive customer support, ideally based in New Zealand or Australia
• Educational resources, such as tutorials, guides, FAQs, and market explainers

What are the different types of ETFs accessible in New Zealand?

In New Zealand, investors have access to a wide range of ETFs allowing them to invest in different assets and strategies. Here is a summary table of the main types of ETFs, with their description and some popular examples among New Zealand traders.

Are ETFs Eligible for a KiwiSaver Account?

Yes, some ETFs are eligible for a KiwiSaver account, but not all. For an ETF to be included in a KiwiSaver account, it must meet specific criteria imposed by New Zealand regulations.

What Conditions Must an ETF Meet to Be Eligible for a KiwiSaver Account?

An ETF is eligible for a KiwiSaver account if it meets these conditions:

• They are domiciled in the European Union.
• They invest primarily (at least 75%) in shares of New Zealand companies.

ETFs that invest mainly outside of New Zealand (e.g. S&P 500, Nasdaq-100, MSCI World) are not eligible for the specific investment schemes in New Zealand, unless they use synthetic replication that complies with the quotas of New Zealand shares.

Here are some examples of ETFs eligible for specific investment schemes in New Zealand: 

How to Invest in ETFs Online in New Zealand

Investing in ETFs online is a simple and accessible method to diversify your investment portfolio. Here are the essential steps to start investing effectively in New Zealand.

1. Choosing a Suitable Broker

The first crucial choice is the broker that will allow you to buy ETFs. To do this, you need to compare several criteria:

• Brokerage fees: Opt for platforms with reduced fees.
• ETF Offer: Ensure the broker offers a wide selection of ETFs (equities, bonds, sector-specific, thematic, etc.).
• Account Type: Consider whether you want to invest via a standard brokerage account for unlimited access to global ETFs.
• Security and Regulation: Opt for a broker regulated in New Zealand by the Financial Markets Authority (FMA) or other recognised authorities.

2. Open an Investment Account

Once you have chosen a broker, you need to open an account by providing a few documents:

• Proof of identity (identity card or passport).
• Proof of address (bill, tax assessment).
• Bank statement for deposits and withdrawals.

La validation du compte peut prendre quelques heures à quelques jours, selon le courtier.

3. Déposer des fonds sur votre compte

Avant d’acheter des ETF, il faut alimenter votre compte en effectuant un dépôt. Selon le courtier, vous pourrez déposer des fonds via :

💳 Virement bancaire (méthode la plus courante).
💰 Carte bancaire (plus rapide mais parfois avec des frais).
📱 Portefeuilles électroniques (PayPal, Skrill, etc., selon les plateformes).

4. Selecting ETFs to buy

It is important to choose ETFs that are appropriate for your strategy. You can invest in:

• Index ETFs (MSCI World, S&P 500) for a passive and diversified approach.
• Sector ETFs (technology, healthcare, renewable energy) to target a trend.
• Bond ETFs for a more defensive allocation.
• Dividend ETFs to generate a passive income.

5. Placing a Buy Order

Once you've chosen your ETF, you need to place a buy order. There are several types of orders:

• Market order: Immediate purchase at the current price.
• Limit order: Purchase only if the ETF reaches a defined price.
• Stop order: Purchase triggered when the price exceeds a certain threshold.

6. Monitor and Adjust Your Portfolio

Investing in ETFs requires regular monitoring to ensure your portfolio remains aligned with your objectives. To do this:

• Analyse performance: Track the performance of your ETFs via your broker or tools like Google Finance.
• Rebalance your portfolio: Adjust your asset allocation if one sector becomes too dominant.
• Invest regularly: Adopt a Dollar Cost Averaging (DCA) strategy by buying ETFs at regular intervals to smooth out the risk.

What fees are associated with an ETF broker or intermediary?

Investing in ETFs involves fees that can impact the profitability of your portfolio. These costs vary depending on the type of account, the target market, and the investment method. Here are the main fees to anticipate with concrete examples.

1. Brokerage fees

Brokerage fees are applied to each ETF buy or sell order. They can be fixed (example: NZD 1 per order) or proportional (example: 0.1% of the amount invested). Some brokers offer commission-free ETFs under certain conditions, such as a scheduled purchase or one limit order per month.

Exemple de frais de courtage ETF

Achat d’un ETF pour 1 000 NZD avec des frais de 0,5 % → 5 NZD de frais.

Achat du même ETF avec un courtier offrant un ordre gratuit par mois → 0 NZD de frais.

2. ETF Management Fees

These fees are directly levied by the ETF issuer and slightly impact the fund's performance. They are expressed as an annual percentage of assets under management.

Exemple de frais de gestion ETF

• Un ETF mondial avec 0,40 % de frais de gestion entraîne un coût annuel de 4 pour 1 000 investis.
• Un ETF S&P 500 à 0,07 % ne coûte que 0,70 pour 1 000 investis sur une année.

3. Currency Conversion Fees

If the ETF is listed in US dollars (USD) or British pounds (GBP) and the account is in New Zealand dollars, currency exchange fees apply to buying and selling. These fees vary between 0.1% and 1% depending on the platform.

Example of Currency Conversion Fees

Buying a Nasdaq-100 ETF in dollars for NZD 2,000, with a currency exchange fee of 0.5% → NZD 10 in fees.

4. Inactivity Fees

Certain brokers charge fees if no orders are placed for several months. These fees are generally charged after 6 to 12 months of inactivity and may be fixed or proportional to the account balance.

Example of inactivity fees

• An inactive account for 1 year with a fee of $10 per month results in a cost of $120 over the year.

5. Withdrawal fees

Some platforms charge fees for withdrawing funds to a bank account. These fees may be fixed (example: $5 per withdrawal) or proportional (example: 1% of the amount withdrawn).

Example of withdrawal fees

A withdrawal of NZD 500 with a fixed fee of NZD 5 results in a cost of 1% of the amount withdrawn.

6. Spreads and overnight fees (for ETF CFDs)

If you trade ETF CFDs, you need to consider:

• The spread: the difference between the buying and selling price, which can be fixed or variable.
• Overnight fees: applied when you keep a leveraged position from one day to the next.

Example of ETF CFD Fees

• Buying a CFD on the S&P 500 ETF with a spread of 0.2% on a NZD 1,000 position → NZD 2 in fees.
• Holding the CFD for 5 days, with overnight fees of 0.01% per day → NZD 0.50 in cumulative fees.

What Investment Strategies Can You Use with ETFs?

ETFs offer numerous investment strategies tailored to different investor profiles. Depending on your goals (growth, passive income, protection against volatility, etc.), some approaches will be more suitable than others.

Here is a summary table of the main ETF investment strategies:

What are the tax implications for ETF income in New Zealand?

In New Zealand, income from ETFs — including capital gains, dividends, and trading profits — is taxed based on the type of ETF, where it is domiciled (New Zealand vs foreign), and the total value of your offshore holdings. New Zealand does not have a capital gains tax for most investors, but tax rules like the FIF regime can apply to foreign investments.

1. Tax on ETFs held through a standard investment account

When investing in ETFs via platforms like Sharesies, Hatch, or InvestNow, your tax treatment depends on whether the ETF is New Zealand-domiciled or foreign-domiciled.

Example

• You sell an NZ or AU ETF with a $2,000 gain → no capital gains tax applies.
• You receive $500 in NZ dividends with $100 in imputation credits → these reduce your tax payable on that income.

2. Tax on foreign ETFs and the FIF regime

If your total offshore ETF holdings exceed NZD $50,000, the Foreign Investment Fund (FIF) rules usually apply. Instead of paying tax on actual gains or dividends, you must pay tax on a 5% deemed income, calculated from the total market value of your foreign investments.

Example

You hold NZD $60,000 in US ETFs → you declare NZD $3,000 (5% of $60,000) as taxable income, even if the ETF paid no dividends.

You can often reduce your total tax liability by using imputation or foreign tax credits where available, especially if you receive dividends that were already taxed at source.

3. Tax on leveraged ETFs and CFD trading

Trading leveraged ETFs or ETF CFDs (Contracts for Difference) is considered active investing or speculation and is treated differently from long-term investment.

Example

You earn $3,000 through CFD trading over several months → that amount is taxed at your marginal tax rate, just like salary income.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.