Best Business Investment Accounts in Australia (compared in 2024)

Investing is an excellent way for businesses to grow capital and reach financial goals. Especially in times of high inflation, which effectively eats away cash surpluses. However, with so many different business investment accounts and brokers available, it can be challenging to know where to start.

Not all brokers are created equal. Some may offer better pricing, platforms, features, and customer service. To help you make an informed decision, we have compared some of Australia’s best business investment accounts.

In this article, we present you a list of proposed brokers and answer the question of what a business investment account is and which Australian entrepreneurs can establish it.

Business Investment Accounts Compared

Established in 1978 and a public entity on NASDAQ under the symbol IBKR, Interactive Brokers has become a prominent global online broker. Despite facing major financial crises, the company has demonstrated strength and a meticulous approach to risk management.

Interactive Brokers provides a sophisticated investment platform, enabling global investments in assets like stocks, options, futures, currencies, bonds, and funds through one unified account. The platform’s intricate trading and account management tools offer control and delegation of user permissions for different types of business brokerage accounts.

Companies worldwide can establish an account with Interactive Brokers, including Small Businesses, Hedge Funds, Prop Traders, and Family Offices. The broker offers robust trade execution via IB SmartRouting and a collection of technical and analytical instruments to assist in investment decisions.

Though Interactive Brokers’ fee structure can be intricate, and the registration process is extensive yet entirely online, it doesn’t provide commission-free trading outside the US. Nevertheless, considering factors like FX fees, tighter spreads, and the stock loan program, clients of Interactive Brokers often realise substantial savings in comparison to other brokerage services.

For further information about Interactive Brokers, you can explore more details on the company’s official landing page.

Saxo Bank stands out as a robust financial institution in the brokerage field, boasting a consistent record of achievement. The bank offers trading in over 40,000 financial instruments via its platforms: SaxoTraderPRO (for PC) and SaxoTraderGO (for mobile devices).

Saxo Bank’s corporate account levels are described below:

• Classic: Requires a minimum deposit of AUD 10,000, granting access to competitive spreads and 24/5 customer and technical support.
• Platinum: With a minimum deposit of AUD 300,000, this tier includes Classic features and reduces trading costs by up to 30%, prioritising local language support.
• VIP: A minimum deposit of AUD 1,500,000 is needed for this tier, offering the best prices, access to trading specialists, and exclusive event invitations.

Saxo Bank typically takes a week to approve a business investment account, provided they receive clear copies of specific documents, including the Memorandum and Article of Association, Certificate of Incorporation, proof of the company’s business address, the latest financial statement, and a group structure diagram (if applicable).

Furthermore, every beneficial owner with a 25% or more company holding and each company director must submit additional documents, such as a passport and proof of residency (e.g., a recent utility bill).

You can visit the dedicated landing page for corporate investment accounts for more comprehensive information regarding Saxo Bank’s offering.

Established in 2006, eToro is a well-known worldwide fintech startup and the leader in social trading (following other people’s trades), with over 30 million users worldwide. You can also invest in other products through their platform, which is intuitive and simple to use, making it a good choice for beginners. Plus, they offer low-commission ETF trading in Australia.

Opening an account and depositing is easy; you can even try it out with virtual money. On the downside, spreads can be high for some products. The base currency is USD or EUR, so you’ll be charged currency conversion fees upon deposit and withdrawal if you deposit in AUD.

Social trading allows users to observe and learn from experienced traders in real time. New traders can follow the strategies of successful investors, understand their decision-making processes, and gain insights into market trends and trading techniques.

eToro’s social trading feed is super intuitive. You quickly filter your feed and engage with other users on companies and other investment opportunities that interest you most.

Founded in 1974, IG Group is a leading global trading and investments provider, operating in over 15 countries with a vast client base. As a multi-faceted financial institution, IG Group offers opportunities to trade in various instruments such as forex, indices, shares, commodities, and more.

The broker’s offer includes institutional corporate accounts aimed at regulated entities, banks, brokerage firms, and retail corporate accounts intended for businesses and entrepreneurs.

If you want to apply for a corporate account, you must follow these three steps:

• Review the Terms – You consent to IG’s rules and regulations by obtaining the PDF application form.
• Complete the Application Form – Once you’re prepared to proceed, fill out one of the available corporate account forms.
• Submit Your Application – Forward your completed application to the following email address: [email protected].

You can find all the necessary information and documents to apply on IG Group’s official website.

What is a Business Investment Account?

A Business (or corporate) investment account in Australia is a specialised financial account designed for businesses, including small to large enterprises and entrepreneurs. It functions as an investment tool that allows companies to invest surplus funds in various financial instruments, such as bonds, stocks, or mutual funds.

The primary advantage of a business investment account is that it can provide a higher return on investment compared to traditional savings accounts. It offers flexibility in investment choices and can be tailored to meet the business’s specific financial goals and risk tolerance.

Any company and entrepreneur in Australia can establish this type of investment account. However, remember that regulations and tax implications may vary depending on the scale and type of business.

Conclusion

In the ever-changing landscape of business investment, Australian companies and entrepreneurs have many options to choose from. Investing through a particular broker should align with the business’s financial goals, risk tolerance, and investment preferences.

Each broker presents unique advantages, from Interactive Brokers’ comprehensive offerings to Saxo Bank’s tiered account levels and eToro’s global reach to IG’s robust platform.

Your business can find the investment account that best suits your needs by carefully considering factors such as minimum deposit, supported products, fees, and currency support.