Best New Zealand Investment Apps
Our guide outlines the investment apps, platforms and options for new and experienced investors alike. Whether you have $100 or $100,000 to invest, our guide explains everything you need to know
Updated 27 October 2020
Investing apps have taken New Zealand by storm since the launch of Sharesies in 2017. While web-based platforms such as ASB Securities and Direct Broking have existed for years, the 'Sharesies effect' has made investing accessible for everyone. You can invest as little as $1, and you can do it from your phone. With the arrival of innovative services like Hatch, InvestNow, Stake and specific fund managers, the range of investing apps continues to grow. Best of all, every innovation directly benefits the New Zealand consumer with lower fees and more choice.
This guide outlines investment platforms and apps currently available to anyone residing in New Zealand. We cover:
Know this first: We've included investment platforms that are web-based in our list of investing apps. This is because we believe for the majority of New Zealanders, a web-based interface and an app are both sufficient for the type of investing being conducted. If you do feel as if you need further insights beyond a particular app's offering, we suggest looking at Sharesight as a possible add-on.
This guide outlines investment platforms and apps currently available to anyone residing in New Zealand. We cover:
- Summary of Best Investment Apps
- Investment Apps Pros and Cons
- Our Favourite Investing Apps (for Specific Purposes)
- Frequently Asked Questions
Know this first: We've included investment platforms that are web-based in our list of investing apps. This is because we believe for the majority of New Zealanders, a web-based interface and an app are both sufficient for the type of investing being conducted. If you do feel as if you need further insights beyond a particular app's offering, we suggest looking at Sharesight as a possible add-on.
Our Five Favourite Investment Apps
Based on our research and evaluation of the various apps, platforms and interfaces, we believe the five apps stand above the competition based on their offering, features, pricing and service:
- Sharesies: Best App or Platform for Beginners and Auto-Investing
- Stake: Best Free App or Platform for Trading on the US Markets
- Hatch: Best App or Platform for Low-Cost Investing in the US Markets
- InvestNow: Best App or Platform for Managed Funds
- Kernel: Best App or Platform for Specialised Index Funds
- Simplicity Investment Funds: Best App or Platform for Low-Cost Index Funds
Summary of New Zealand's Best Investment Apps
Investment Platform |
Investment Opportunities |
Commission & Fees |
Minimum Purchase |
More Information |
NZ Shares, US Shares, ETFs Managed Funds, Index Funds |
$30/year membership fee + 0.5% (<$3,000) + 0.1% (for amounts above $3,000) |
$1 |
||
US Shares and ETFs |
US$3 per trade (buy and sell) 0.50% FX conversion fee |
$1 |
||
US Shares and ETFs |
Free trades, users pay regulatory fees 1% FX conversion fee |
$1 |
||
ETFs Managed Funds and Index Funds |
No platform fees, fund management fees varydi |
$250 |
||
NZ, Australian, USA and UK Shares |
$29.90 per trade (up to $15,000 NZD, AU$30,000) |
$1 |
||
NZ and Australian Shares |
$15 ( < NZ$1,000) $30 (NZ$1,000 - NZ$10,000) 0.30% (> NZ$10,000) Australian trades: AU$30 |
$1 |
||
Index Funds |
$20year membership fee + 0.10% to 0.31% p.a. management fee |
$1,000 per fund |
||
Index Funds |
$36/year membership fee + 0.39% p.a. management fee |
$10 per fund |
How do I use an Investment App?
- Signing up: For most investment apps, you'll need to be 16 years or older, a New Zealand resident with a New Zealand bank account. There will usually be an anti-money laundering check after you apply. Once approved, you'll set up a login and password.
- Investing: You'll be able to see the range of investments offered, which depending on the app, can be anything from 4 to 4,000+. The investment app will guide you through how to fund your account, either by setting up a regular automatic payment from your bank account, or transferring in a one-off sum. Once your account is funded, you can buy and sell investments based on the current market price.
- Monitoring: Most investment apps have tools so you can see the performance of your investments, helping you make ongoing decisions.
​Investment Apps: Pros and Cons
Pros:
Cons:
- Low minimum investment – many platforms have a $5 or $10 minimum investment, which allows you to start investing right away.
- Low fees for smaller accounts – if a platform charges are membership fee, it will (usually) be less than $30/year. Others only charge a transaction fee, so there’s no ongoing cost unless you buy and sell investments. In contrast, others such as InvestNow and Stake don’t charge anything.
- Simple to use – design and user experience are at the heart of keeping investors happy. This means you can sign up for an account in minutes and, after your details are approved, quickly fund your account. You can then track the progress of your investments, visualise your profits, and view investment options.
- Automatic investments - many platforms offer automatic investing, meaning you can actively save for your future. Sharesies, for example, lets you allocate regular contributions to one (or many) or its funds to help grow your balance.
- Socially responsible investing (SR) opportunities are highlighted – many apps categorise their investment options under SRI and ESG (Environmental, Social and Governance) so you can invest in things that are important to you. For example, Sharesies offers the Pathfinder funds which invest in sustainable businesses.
Cons:
- You may under-invest – if you add $5 or $10 to your investment balance, it’s unlikely to add up to anything significant unless you commit to the long term. An investment app with a balance of $500 or $1,000 after 2+ years of contributing isn’t substantial in the scheme of things. To protect your future, a solid savings plan is needed – sporadic (and small) top-ups are unlikely to provide a suitable long-term strategy.
- Fees can eat into profits – Sharesies and Kernel are two examples where you’ll pay around $30/year to be a member of the respective platform. If you have a balance of $1,000, the $30 represents an annual fee of 3%. This is relatively high (relative to managed funds and index funds), meaning your returns must be above 3% per year to break even.
- Limited account options – right now, most investments apps don’t offer joint accounts or the opportunity to invest on behalf of your business. Only some apps offer managed funds, and investing with Hatch, Stake and Sharesies means a foreign exchange risk as the assets are held in USD (which may increase or decrease against the NZD, affecting the local value of the investments).
- Investing based on hype and buzz can have consequences – there has been a surge of investing Whatsapp and Facebook groups established in the last couple of years. While the intentions are genuine, many ‘tips’ are shared around New Zealand, encouraging inexperienced investors to buy and sell particular shares. If you’re going to actively pick shares to invest in, you have to accept that there is risk and your investment could fall in value. With any investment, the best approach is to diversify your portfolio so that you’re not overly exposed should one asset drop in value.
Our Favourite Investing Apps (for Specific Purposes)
- Sharesies: Best App or Platform for Beginners and Auto-Investing
- Stake: Best Free App or Platform for US Markets Investing
- Hatch: Best App or Platform for New Zealanders Growing their Portfolio while Learning About Investing
- InvestNow: Best App or Platform for Managed Funds
- Kernel: Best App or Platform for Specialised Index Funds
- Simplicity Investment Funds: Best App or Platform for Low-Cost Index Funds
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Sharesies: Best App or Platform for Beginners and Auto-Investing
|
|
Stake: Best Free App or Platform for Trading on the US Markets
|
|
Hatch: Best App or Platform for Low-Cost Investing in the US Markets
|
|
InvestNow: Best App or Platform for Managed Funds
|
|
Kernel: Best App or Platform for Specialised Index Funds
|
|
Simplicity Investment Funds: Best App or Platform for Low-Cost Index Funds
|
Investment Apps - Frequently Asked Questions
Investing apps are increasingly simple to use, but there are some must-know facts. Our FAQs below explain what's important for making the right choice.
How much money do I need to invest?
$1 is the minimum investment for most (but not all) investment apps and platforms. New Zealanders who do the best out of their investing activities, i.e. make the most money, tend to invest regularly, are diversified and stay committed for the long term.
Our list of apps above generally works best when you invest at least $100 to avoid ongoing fees eating into returns. A sensible amount to start with is at least $100 to $500 and then contribute regularly.
Our list of apps above generally works best when you invest at least $100 to avoid ongoing fees eating into returns. A sensible amount to start with is at least $100 to $500 and then contribute regularly.
​What investment app is best for buying shares?
It depends on the amount you’re buying and selling. In the summaries above, we have itemised the apps based on price (which is trading costs and ongoing member fees), app features and investing minimums.
​I’m new to investing – what is the best app?
For new investors wanting to learn as they go, Sharesies is arguably New Zealand’s most popular option with hundreds of thousands of users. Sharesies lets you invest in New Zealand and US sharemarkets, as well as invest in a select number of managed funds. It has several useful features, such as regular contributions and top-ups helping users invest for the long-term. There’s also a highly active Facebook group to help new investors.
​What assets can I buy and sell using these apps?
It depends on the app and platform; some offer shares, ETFs and index funds (such as Sharesies), whereas others offer US shares only (Hatch and Stake). Others specialise in ETFs and funds (InvestNow), while Simplicity and Kernel exclusively offer their branded index funds.
Is my money safe?
All New Zealand-based apps and platforms are highly regulated. Popular services such as Sharesies, Hatch, Stake, InvestNow, ASB Securities and Direct Broking have a strong custodial structure in place to prevent you losing any of your investment in the case that the services fail financially. Our dedicated guide explains custodians in detail and how they protect investors. A custodian exists with one purpose - to hold assets on behalf of specific beneficiaries. It can't go bust as it is tightly regulated and regularly monitored.
However, it’s essential to be aware of the risks of investing. The decisions that you make, i.e. what you invest in, are not protected. This can mean the balance of your investments can drop, and you’ll lose money if you then sell or redeem.
However, it’s essential to be aware of the risks of investing. The decisions that you make, i.e. what you invest in, are not protected. This can mean the balance of your investments can drop, and you’ll lose money if you then sell or redeem.
How many investment apps should I sign up for?
It depends. It's unwise to double-up on apps that charge membership fees as you're paying twice for access to the same (or similar) investment opportunities. A new investor would be prudent to pick two apps to use, and then, once established and experienced, look for further opportunities.
How can I quit or leave an investing app?
The standard practice is to sell, transfer or redeem your investments (so your balance is $0). You can then notify the client/customer service team to close down access. Many investing apps charge ongoing membership fees which will be avoided by cancelling the account.
To recap our selections:
