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ASB Securities Review: Buy shares, invest in funds, and more
We breakdown the pros and cons of diving into investing with ASB Securities
This review looks at what those options are, how much it costs and where to begin.
What can I invest in with ASB Securities?
ASB Securities’ available investment types include:
- Shares. Invest in individual companies.
- Exchange traded funds (ETFs). Collections of shares or other assets, making it easier to diversify a portfolio.
- Fixed interest securities. Investments that pay fixed returns, including government and corporate bonds, preferential shares and term deposits.
- Margin lending. High risk trading, where traders borrow money to amplify gains and losses. On ASB Securities, traders can use stocks as collateral for margin trading.
These offerings can be accessed through ASB Securities’ online share trading platform, although the rates and fees vary for each.
How much does it cost?
Different ASB Securities products will incur different types of fees. It’s essential that you’re aware of these, because it may be possible to rack up extremely high fees if you’re not paying attention to costs such as overdraft fees.
The basic brokerage fees, for buying and selling shares, ETFs and fixed interest securities, are as follows.
|Shares, ETFs (New Zealand securities)||$15 for trades up to $1,000|
$30 for trades over $1,000 and up to $10,000
0.30% for trades over $10,000
|Shares, ETFs (Australian securities)||0.30% (AU$30 minimum per trade)|
No sales fees apply when holding bonds to maturity
Margin lending fees
If you use the high-risk margin lending offering, there are also some additional fees to watch out for.
|Type||Fee||How it works|
|Margin lending interest rate||4.95% p.a.||Fee is calculated daily on the amount borrowed and charged monthly|
|Termination fee||Up to $200||Charged when closing margin lending account and transferring stocks out|
|Nominee fee||$125 every six months||Charged after each six month period. Waived if you have paid $400 or more in margin lending interest in the preceding 6 months.|
|Stock transfer fee||$30||Charged per stock when adding or removing stocks as margin lending collateral|
It’s mandatory for margin lenders to use the nominee service, which incurs the above nominee fee and stock transfer fee.
But other ASB Securities users can also use the nominee service if needed, with the same nominee and stock transfer fees.
When you sign up for ASB Securities, it will create an ASB Cash Management Account for you. Trading is done through this bank account, so you will need to be aware of any fees incurred in transfers you make to this account.
|Unarranged overdraft fee||0.12%|
Applies to the highest overdrawn balance each month, and all unarranged overdrafts exceeding $20
|Unarranged overdraft interest rate||22.5% p.a. charged daily|
|Funds transferred to another ASB bank account||Free|
Is ASB Securities safe?
ASB Securities is the trading service of ASB Bank, the New Zealand subsidiary of Commonwealth Bank.
The cash in your account is as safe as in any other ASB bank account, while your securities are held by registered custodians.
How to sign up
If you already have an ASB bank account you can log into it online, and then sign up for an individual share trading account through that.
If you’re not already an ASB customer, or want to open a joint, entity or business share trading account, you can fill out the online application form.
This involves providing some personal and banking details, identification and tax information.
Once you’ve created an account, you can get started by depositing funds into your ASB cash management account, and then placing orders.