ETF Investing · Review

Betashares Direct Review 2026: Is Fee-Free ETF Investing Worth It?

By Lee · MoneyHackHQ founder · Betashares Direct user · Last updated 22 May 2026

Betashares Direct has quickly become one of the most talked-about ways for Australians to buy ETFs, mostly because of one headline feature: zero brokerage. I’ve been using it to invest in DHHF, so this is a hands-on review rather than a spec sheet — what’s genuinely good, where the catch is, and who should probably look elsewhere.

What is Betashares Direct?

Betashares is one of Australia’s largest ETF providers, managing over $45 billion across more than 100 funds for over a million investors. Betashares Direct is its own investing platform — an app that lets you buy ETFs and shares directly, rather than going through a traditional broker. It launched to make regular ETF investing cheaper and simpler, and it won Best ETF Investing Platform in the 2026 Finder Awards.

The pitch is straightforward: invest in any ASX-traded ETF and several hundred ASX-listed shares with no brokerage, set up automatic recurring investments, and buy fractional units from as little as $10 so your whole deposit goes to work rather than sitting as leftover cash.

The fees: what’s actually free (and what isn’t)

This is where most reviews get muddled, so let me be precise. For ordinary self-directed investing — you choosing which ETFs or shares to buy — the fees are genuinely zero:

The fees that do exist are worth knowing but easy to avoid. There’s a transfer-out fee of up to $9.50 per security if you move holdings to another provider, and Betashares keeps any interest earned on the cash sitting in your account’s cash wallet (so don’t treat it as a savings account — keep your cash buffer somewhere that pays you interest).

The one fee that catches people out: if you opt into a Managed Portfolio or Custom Portfolio (Betashares’ automated, pre-built or rules-based portfolio products), you pay a portfolio fee — $3/month under $10,000, or 0.20% p.a. above that for Betashares-only portfolios. That’s optional. If you simply buy your own ETFs and use plain auto-invest, you never touch those fees. Most cost-conscious DIY investors should stick to self-directed investing and skip the managed products.

Note: the underlying ETFs always have their own management cost (the MER), charged by whoever issues the fund. That’s true on any platform — it’s not a Betashares Direct fee.

The big caveat: custodial, not CHESS-sponsored

This is the single most important thing to understand before signing up, and a lot of affiliate reviews skate over it. Betashares Direct is not CHESS-sponsored. On a CHESS-sponsored broker, shares are registered directly in your name with your own Holder Identification Number (HIN). On Betashares Direct, your investments are instead held on a pooled basis by a custodian (Citigroup), with Betashares keeping the records of what you own.

In practice, for most long-term investors this works fine and is how many large platforms operate. But it’s a genuine difference: you don’t get a personal HIN, and moving your holdings elsewhere isn’t as simple as a standard broker-to-broker transfer. If having your shares registered directly in your name is important to you, a CHESS-sponsored broker is the better fit, and I’d rather you know that now than discover it later.

What I like after using it

• Zero brokerage actually changes behaviour. When every $500 buy isn’t costing you $3–$10 in brokerage, investing small amounts often becomes viable. That’s a real advantage for regular investors, not just a marketing line.
• Fractional investing from $10. Your whole deposit goes in, instead of leaving an awkward cash remainder because you couldn’t afford a whole unit.
• Auto-invest is free and set-and-forget. This is the feature that makes it genuinely useful — schedule a recurring investment and ignore it.
• The tax and performance reporting is solid. Personalised reporting makes EOFY noticeably less painful, which matters more than it sounds.
• Buying Betashares’ own funds (like DHHF) is seamless — no brokerage, and the app is built around exactly this kind of buy-and-hold investing.

What could be better

• ASX only. You can’t buy ETFs or shares listed overseas, so if you want direct US stocks you’ll need a separate platform.
• Custodial structure (covered above) won’t suit everyone.
• Cash-wallet interest is retained by Betashares, so it’s not a place to park cash.
• Share range is limited compared with a full broker — it’s a few hundred ASX shares, not the whole market. For an ETF-focused investor that’s rarely a problem; for a stock-picker it might be.

Who it’s best for

A great fit if you’re: a buy-and-hold ETF investor, someone who invests small amounts regularly, a beginner who wants a simple app, or anyone tired of paying brokerage on every purchase. If you’re dollar-cost-averaging into something like DHHF every month, this is close to ideal.

Look elsewhere if you: want your shares CHESS-sponsored under your own HIN, need to buy US-listed or international shares directly, or are an active stock-picker who needs a broad share universe. In those cases a CHESS broker or an international platform fits better.

How to get started

Signing up is done in the app and takes a few minutes — you’ll verify your identity, link a bank account, and you’re ready to invest from $10. If you sign up through the referral link below and deposit $50 or more, you get a bonus to start with.

FAQ

Is Betashares Direct really free?

For self-directed ETF and share investing, yes — no brokerage, account, deposit, withdrawal, or auto-invest fees. Optional Managed and Custom Portfolio products carry a portfolio fee, and the underlying ETFs always have their own management cost. There’s also a transfer-out fee if you leave.

Is Betashares Direct safe?

It’s operated by Betashares, a long-established Australian fund manager, with investments held by a custodian (Citigroup). As with any investment, your capital is still at market risk — “safe” here means a reputable, regulated operator, not a guarantee against losses.

Is it CHESS-sponsored?

No. It uses a custodial model rather than issuing you a personal HIN. For many long-term investors this is fine, but it’s the key difference to weigh against CHESS-sponsored brokers.

Can I buy DHHF on Betashares Direct?

Yes, and brokerage-free since it’s a Betashares fund. It’s one of the most popular all-in-one ETFs for hands-off investors — we cover it in detail in our separate DHHF guide.