Sharesies joins Stake in lifting brokerage fees: How does it now compare?

Posted: 24 January 2023 10:56 am
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Sharesies has changed its fees structure, implementing a transaction cap.

Sharesies’ new fee structure will start 31 January.

Under the new structure, you’ll pay a transaction fee of 1.9% on the amount you invested, up to a capped amount.

The new pricing model will replace the existing fee structure which has you paying 0.5% on orders for trades up to $3,000 and 0.1% if your transaction is above $3,000.

But the trading platform will have a cap, so larger traders won’t necessarily pay more.

Instead, the maximum you’ll pay is:

  • $15 per trade on Australian shares
  • NZ$25 per trade on New Zealand shares
  • US$5 per trade on US shares

Prices for monthly plans remain unchanged and those that trade frequently might be able to benefit from these plans.

Even though Sharesies’ claim to fame is it allows anyone to trade, under the new model those who are trading smaller amounts are slightly worse off, while those who are trading more come out ahead.

Sharesies’ follows an announcement by fellow provider Stake which says come March it is dropping its $0 brokerage on US shares.

Brendan Doggett, Sharesies’ country manager for Australia, says “everyone on the Sharesies platform should be able to invest in a way that’s competitive, suits them, and delivers great value by limiting the maximum amount they’ll pay in fees per order.”

How does Sharesies now compare?

Before you rush out and change providers, even with the changing fees, Sharesies is still cheap.

Especially in comparison to much of its competition.

But there is better value out there depending on your trading style.

Unfortunately though, with both Stake and Sharesies lifting brokerage rates, there’s no longer a $0 US broker in New Zealand.

If you’re trading US stocks, you could be better off trading with either Hatch or Stake though, depending on the size of your trades.

Although it is worth pointing out brokerage fees are not the only fees you’ll be charged.

As such, you should keep an eye on these additional fees when you sign up.

Sharesies also has another thing going for it when it comes to retail trading as it still performs well in allowing you to trade for less.

If you’re newer to investing and want to start with a smaller amount, a micro-investing account like Sharesies will allow you to get into the market quicker.

Looking for a low-cost online broker to invest in the stock market? Compare share trading platforms to start investing in stocks and ETFs.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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