Sharesies vs Hatch vs Stake - Which one is best for investing in the US markets, and right for you?
Read, learn, and compare Shareies, Hatch and Stake with help from MoneyHub's financial experts. Let us help you pick the best investment platform for your investing needs
Updated 12 January 2021
If you want to invest in the US markets, Sharesies, Hatch and Stake are all options. What suits you will come down to how much you plan to invest, how often you plan to buy and sell, and other factors. Our guide walks you through the differences that matter. In this guide, we explain:
Know this first:
Important: This guide is for US-based investing. If you wish to compare Sharesies with other investment options, please see our Comparing Sharesies vs Investnow vs Index Funds guide
If you want to invest in the US markets, Sharesies, Hatch and Stake are all options. What suits you will come down to how much you plan to invest, how often you plan to buy and sell, and other factors. Our guide walks you through the differences that matter. In this guide, we explain:
- What is Sharesies?
- What is Hatch?
- What is Stake?
- Similarities
- Fees: Who is Cheaper - Sharesies, Hatch or Stake?
- Key Differences
- Final thoughts
Know this first:
- Sharesies was launched in 2017 and is privately owned. It started as a platform for investing in companies listed on the NZX, as well as managed funds. In August 2020 it added US shares and uses DriveWealth, the same US-based dealer-broker as Hatch and Stake. Transaction fees are simple - to buy and sell shares you pay 0.5% for orders up to US$3,000, plus 0.1% for amounts above US$3,000. To fund your account from NZD to USD you'll pay an exchange fee of 0.40% on the amount. Sharesies is a web-only platform (no app) and has over 250,000 members.
- Hatch was established in 2018 and is owned by Kiwi Wealth Ltd, a sister company of Kiwibank and part of the Kiwi Group family. Since launching, it has grown fast. It charges a simple US$3 per trade (for up to 300 shares, then $0.01 per share from there). The Wellington-based firm offers a web-only platform (no app) and has facilitated hundreds of thousands of trades since launching.
- Stake takes a different approach to Sharesies and Hatch, offering zero trade fees and an app. It's based in Sydney and launched in New Zealand in May 2020. The free trading feature is unrivalled by both Sharesies and Hatch and is arguably Stake's biggest selling point. However, Stake charges regulatory fees (generated when selling shares), whereas Sharesies and Hatch include them in their trading fees. It also has an app, meaning you can trade on your phone.
- All dollar ($) values below are expressed in USD, which is Sharesies, Hatch and Stake's functional currency by way of trading and fees. Please note Sharesies' monthly/annual membership fee is charged in NZ$.
- Know this about fees: Sharesies, Hatch and US platforms are cost-effective when an investor buys-holds-sells-reinvests and retains all monies in USD (i.e. doesn't transfer balances in and out of NZD). If you select the right investments, your USD balance grows and limits the amount of NZD you need to translate into USD. The more NZD you transfer into USD, the more FX fees you pay. Because Stake doesn't charge trading fees, it is the lowest cost platform if you plan to invest and re-invest as outlined in our comparison table here.
Important: This guide is for US-based investing. If you wish to compare Sharesies with other investment options, please see our Comparing Sharesies vs Investnow vs Index Funds guide
What is Sharesies?
Sharesies is New Zealand's first low-fee online share investing platform. Launched in 2017 as the product of a startup incubator, its purpose has been to make investing obtainable for young people. To achieve this, it now offers anybody the opportunity to invest in the NZ and US sharemarket for as little as 1 cent, through the ability to buy fractions of shares. Its customers have formed Facebook groups, appeared on adverts and in three years around one billion dollars has been invested. While its origins were focused on New Zealand focused, it now offers US shares.
What is Hatch?
Hatch was the first New Zealand-based web platform to offer easy access to US-listed stocks and ETFs. The platform has grown in popularity, with a surge during the COVID-19 lockdown. Hatch offers 3,500+ investing opportunities, fully supported by its Wellington team. Its fees are simple to follow, and we outline these below. Hatch provides a full-featured and intuitive investing experience for beginners through to experienced investors, with a useful investor FAQ section explaining complex investing terms and making financial jargon easy to understand.
What is Stake?
Stake is a full suite brokerage with app and web. It serves anyone accessing the US market with full functionality (all order types, day trading) and has over 170,000 Australian customers. It offers 3,900+ shares and ETFs. Per Stake's founding team, 77% of their investors have bought and sold shares before, so it appears to appeal to experienced investors. Stake emulates the offerings of neo-brokers like Robinhood which offer 0% commission brokerage. Launched in 2017 in Sydney, Stake was created by a small team, one of whom has worked as an equities trader in the US. From releasing version 1.0 of Stake to Australians in 2017, Stake has grown on the back of promoting its fee-free trade feature. Today, it's a serious player.
Sharesies vs Hatch vs Stake - Our Thoughts:
Read our comprehensive Sharesies Review
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Read our comprehensive Hatch Review
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Read our comprehensive Stake Review Best For
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Sharesies vs Hatch vs Stake: The Similarities
- All platforms only allow funding from your NZD bank account: Sharesies and Hatch require a bank transfer, whereas Stake only accepts POLi transfers. You can't fund your trading account with a debit or credit card.
- All platforms use the same broker: US share markets investments are processed and held via DriveWealth, a US-regulated broker-dealer.
- All platforms offer protection: If Sharesies, Hatch or Stake decide to shut down, you’d be given significant notice to sell up and get your money out, or transfer your shares from DriveWealth to a different US broker. In the case of a DriveWealth insolvency, under US regulation, your cash and securities flow back to you in the event of a liquidation. DriveWealth also has protections in place in the US, such as Securities Investor Protection Corporation (SIPC). Each customer account is insured for up to $500,000 (with a maximum of $250,000 in cash).
- All platforms offer support: Sharesies is limited to email and social media, Hatch offers a phone call-back service and Stake has 24/5 local Wellington phone number.
Fees: Who is Cheaper - Sharesies vs Hatch vs Stake?
Our table below outlines Sharesies, Hatch and Stake's fee schedules side by side to help you compare with confidence.
| Fee | Sharesies | Hatch | Stake |
|---|---|---|---|
| Ongoing Membership Fee | $30/year (for portfolio balances over $3,000) or $1.50/month ($50-$3,000 portfolio balances). If your portfolio is under $50 total, there is no membership | None | Optional $9/month for additional features such as day trading on unsettled funds, priority customer support, analyst ratings and price targets |
| Deposit FX fee | 0.4% on the interbank rate, no minimum fee | 0.5% on the interbank rate, no minimum | 1% on the interbank rate, $2 minimum fee |
| Withdrawal FX fee | 0.4% on the interbank rate, no minimum fee | 0.5% on the interbank rate, no minimum | 1% on the interbank rate, $2 minimum fee (with a minimum $10 withdrawal amount) |
| Brokerage fee | 0.5% of the order value up to $3,000, then 0.1% after that | $3 flat fee to buy and sell up to 300 shares (then it’s $0.01 a share) for all order types (limit, market, stop-loss) | $0 market orders - all advanced order types are available for free, and all trading is free on Stake. There is zero brokerage fees across the board |
| Customer support | Free and unlimited - online only | Free and unlimited - phone call back, and online | Free and unlimited - local phone number and email |
| Regulatory fees | $0 - Sharesies absorbs these | $0 - Hatch absorbs these | SEC fee: $0.231 per US$10,000 of sale proceeds, TAF fee: $0.0001119 per share with a per-transaction cap of $5.95 |
| W-8BEN filing fee | Free | $1.50 | $5 |
Total Fees Per Trade - Sharesies vs Hatch vs Stake
Our comparison: We calculated the total dollar fees below are based on transactions $500, $1,000, $2,000, $3,000, $5,000 and $10,000 in size.
Results: We found that Hatch was the cheapest per trade when you include FX fees, owing to the fact its fixed $3 trade fee offers economies of scale the higher the transaction value.
Basic Break-Even Amount: If you are buying only into a single company where the price is above $2, Hatch charges $3 and a 0.50% FX fee. The break-even point where Hatch fees are cheaper than Sharesies is $750 and Stake is $600 in one transaction. This won't apply if you purchase a lot of shares so be careful as Hatch's 1 cent/share can add up.
Our view: It's not an easy comparison to make. Because of the different fee structures, it really does depend on how much you plan to deposit and withdraw, the order types you want to use and how often you plan to trade. However, Hatch is the most cost-effective for any trade above $750. Because it's likely investors will buy, hold, sell and re-invest their money while keeping it in USD, our table below calculates and compares the total trade fees if you exclude FX fees.
Results: We found that Hatch was the cheapest per trade when you include FX fees, owing to the fact its fixed $3 trade fee offers economies of scale the higher the transaction value.
Basic Break-Even Amount: If you are buying only into a single company where the price is above $2, Hatch charges $3 and a 0.50% FX fee. The break-even point where Hatch fees are cheaper than Sharesies is $750 and Stake is $600 in one transaction. This won't apply if you purchase a lot of shares so be careful as Hatch's 1 cent/share can add up.
Our view: It's not an easy comparison to make. Because of the different fee structures, it really does depend on how much you plan to deposit and withdraw, the order types you want to use and how often you plan to trade. However, Hatch is the most cost-effective for any trade above $750. Because it's likely investors will buy, hold, sell and re-invest their money while keeping it in USD, our table below calculates and compares the total trade fees if you exclude FX fees.
Comparing Total Fees Per Trade (including FX fees) - Sharesies vs Hatch vs Stake
| Trade Size | Fees | Sharesies | Hatch | Stake | Best Value? |
|---|---|---|---|---|---|
| $500 | FX Fee | $2.00 | $2.50 | $5.00 | |
| Trade Fee | $2.50 | $3.00 | $- | ||
| Total Fees | $4.50 | $5.50 | $5.00 | Sharesies | |
| $1,000 | FX Fee | $4.00 | $5.00 | $10.00 | |
| Trade Fee | $5.00 | $3.00 | $- | ||
| Total Fees | $9.00 | $8.00 | $10.00 | Hatch | |
| $2,000 | FX Fee | $8.00 | $10.00 | $20.00 | |
| Trade Fee | $10.00 | $3.00 | $- | ||
| Total Fees | $18.00 | $13.00 | $20.00 | Hatch | |
| $3,000 | FX Fee | $12.00 | $15.00 | $30.00 | |
| Trade Fee | $15.00 | $3.00 | $- | ||
| Total Fees | $27.00 | $18.00 | $30.00 | Hatch | |
| $5,000 | FX Fee | $20.00 | $25.00 | $50.00 | |
| Trade Fee | $17.00 | $3.00 | $- | ||
| Total Fees | $37.00 | $28.00 | $50.00 | Hatch | |
| $10,000 | FX Fee | $40.00 | $50.00 | $100.00 | |
| Trade Fee | $23.00 | $3.00 | $- | ||
| Total Fees | $63.00 | $53.00 | $100.00 | Hatch |
The above calculation is based on the following fees:
1. Trade
Know this: The fees charged by Hatch increase the more shares you trade (after 300 shares, the fee is 1 cent/share). Our examples below assume under 300 shares are included per transaction. In an extreme example, if you take a punt on 'penny stock', you'd pay 1 cent/share with Hatch, which can add up if you're buying a lot of shares. By comparison, there would be no fee with Stake. Sharesies' trade fee would be 0.50% of the transaction value (and 0.10% for values over $3,000).
1. Trade
- Sharesies - 0.50% of the transaction value (up to $3,000) and 0.10% for trades above $3,000
- Hatch - $3 per transaction
- Stake - $0 (although small regulatory fees do apply, these are cents or fractions of cents)
- Sharesies - 0.40% of the transaction value
- Hatch - 0.50% of the transaction value
- Stake - 1.00% of the transaction value
Know this: The fees charged by Hatch increase the more shares you trade (after 300 shares, the fee is 1 cent/share). Our examples below assume under 300 shares are included per transaction. In an extreme example, if you take a punt on 'penny stock', you'd pay 1 cent/share with Hatch, which can add up if you're buying a lot of shares. By comparison, there would be no fee with Stake. Sharesies' trade fee would be 0.50% of the transaction value (and 0.10% for values over $3,000).
Comparing Total Fees Per Trade (excluding FX fees) - Sharesies vs Hatch vs Stake
The table below suggests Stake, with zero trading fees, is the most cost-effective way to buy-hold-sell-re-invest USD amounts, although (small) regulatory fees apply on top of the Stake fees.
| Trade Size | Fees | Sharesies | Hatch | Stake | Best Value? |
|---|---|---|---|---|---|
| $500 | FX Fee | $0 | $0 | $0 | |
| Trade Fee | $2.50 | $3.00 | $0 | Stake | |
| $1,000 | FX Fee | $0 | $0 | $0 | |
| Trade Fee | $5.00 | $3.00 | $0 | Stake | |
| $2,000 | FX Fee | $0 | $0 | $0 | |
| Trade Fee | $10.00 | $3.00 | $0 | Stake | |
| $3,000 | FX Fee | $0 | $0 | $0 | |
| Trade Fee | $15.00 | $3.00 | $0 | Stake | |
| $5,000 | FX Fee | $0 | $0 | $0 | |
| Trade Fee | $17.00 | $3.00 | $0 | Stake | |
| $10,000 | FX Fee | $0 | $0 | $0 | |
| Trade Fee | $23.00 | $3.00 | $0 | Stake |
The above calculation is based on the following fees:
1. Trade
1. Trade
- Sharesies - 0.50% of the transaction value (up to $3,000) and 0.10% for trades above $3,000
- Hatch - $3 per transaction
- Stake - $0 (although small regulatory fees do apply, these are cents or fractions of cents)
Hatch vs Stake vs Sharesies: The Key Differences
To help you make sense of the finer details between the different platforms, we itemise the differences below:
- Monthly charge: Hatch doesn't have any ongoing membership fees, whereas Sharesies charges up to NZ$3/month and Stake has an optional US$9/month plan to access additional features which primarily appeal to day traders.
- Stock selection: Sharesies, Hatch and Stake run on similar infrastructure, and the number of available investment opportunities are fairly equal between platforms.
- Funding and FX rates: Stake is the most expensive option (1% of total) but it lets customers fund via Wise and other FX companies. Sharesies and Hatch offer 0.40% and 0.50% respectively. Like Stake, Hatch also allows you to use third party FX services while Sharesies does not. It is normal for most US share investors to hold money in a US wallet, which all platforms offer. This means FX fees will be minimal ongoing - once you've transferred NZD to USD, you buy and sell investments in USD and don't need to pay the FX fees continuously.
- Investing opportunities: All platforms offer access to an additional 3,000+ companies and exchange-traded funds (ETFs) across the New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE).
- Sign-up bonus: Sharesies periodically offers sign-up bonuses. Hatch offers a $20 top-up signup bonus if you make an initial deposit of $100 NZD of more using this link. Stake offers a free share when new investors sign up and fund their account within 24 hours. The share will either be Nike, Dropbox or GoPro.
- Features: The platforms are fairly similar; all offer market orders and fractional shares free of charge. All platforms offer limit orders as part of their trade fee (or for free in the case of Stake, which also offers Stop Loss).
- Website vs App: Shareies and Hatch don't offer an app, but both browser platforms offer live trading functionality and the websites can be ‘appified’. Stake offers both a website and an app for Android and Apple - both apps are highly rated by their users.
- Functionality and market data: All platforms present live share price information when the US markets are open, as well as research tools and sorting functionality. Stake goes deeper, providing company news, candlestick charts and displays related shares. It also covers all the markets movers, which can be sorted by a number of factors. Top tip: As Hatch and Stake offer zero ongoing membership fees (as does Sharesies if you invest less than $50), a good idea is to register and validate your ID with all three and see which one you prefer. Best of all, you don't need to fund your account to experience the functionality.
- Portfolio transfer fees: Sharesies allows you to transfer portfolios; it's free to transfer in and $5 to transfer out. Hatch states 'a fee to transfer shares out of Hatch depends on your new broker and fractional shares can’t be transferred' but have confirmed they will help out with the fees your existing broker charges for the move. Stake does not charge a fee for such transfer via ACAT, or $15 if it is made using DTC. To know your options you would need to talk to your existing broker. A sufficient cash balance is required in your Stake account to start the transfer.
- Express Funding: Sharesies offers same-day funding, Hatch exchanges money every business day around 2pm – so if you deposit before 12pm, your money usually hits your Hatch account first thing the following morning – often before the US markets open. Stake offers 'Express Funding', at a 0.50% surcharge, which lets investors get into the market immediately. This is useful if there is there a big move to take advantage of.
- Connection to Sharesight: Sharesies, Hatch and Stake all integrate with Sharesight to make portfolio and tax reporting super simple and easy.
- Support: As noted above, Sharesies is limited to email and social media, Hatch offers a phone call-back service and Stake has 24/5 local Wellington phone number.
- Access to new listings: All platforms offer new listings.
- Day trading: Sharesies and Hatch prohibit day trading, whereas Stake's 'Black' pack members can trade on unsettled funds. Both Stake plans allow members to trade as much as they like.
- Ownership: Sharesies is privately owned by local New Zealand investors. Hatch is owned by Kiwi Wealth, which is a part of the Kiwi Group Family (ultimately owned by NZ Post, ACC and the NZ Super Fund aka the New Zealand government). Stake is Australian-based and privately owned.
Final thoughts
Unsure still which is right for you? We believe the right answer depends on your investing habits. Because both are free to use, you can register for both and see which one is right for you.
Our Thoughts on Sharesies:
Our Thoughts on Hatch:
Our Thoughts on Stake:
Overall
Do you have experience with Shareies, Hatch and/or Stake that you'd like to share? Email our research team today.
Our Thoughts on Sharesies:
- Sharesies is the only platform to charge an ongoing membership fee, NZ$3/month or NZ$30/year. If you're already a Sharesies customer for NZ investments and paying a membership fee, this will cover your US investing activities.
- The 0.40% FX fee is lower than Hatch (0.5%) and Stake (1%), but unlike the other platforms, Sharesies doesn't let you fund your USD wallet using a third-party service.
- The trade fees are simple - 0.5% (up to $3,000) and 0.1% on amount that are simple to understand. However, our analysis of different share sales suggests Sharesies is the least cost-effective in almost all investment sizes.
- However, as our example trades demonstrated, Sharesies was the cheapest on investments below $500. And we excluded the ongoing membership fee to calculate this, meaning Sharesies isn't likely to be cost-effective for small-scale US share investors who aren't already using the New Zealand investment features.
- Best for: Small-scale investors in US shares and Sharesies existing customers wanting exposure to a small amount of US shares
Our Thoughts on Hatch:
- While you pay $3 per trade, the FX fee is half what Stake charges (0.50% vs 1.00% - and no $2 minimum fee) which is a significant benefit.
- Hatch offers a simple way to keep fee percentages low by allowing auto-investments into all 2,700+ companies and ETFs. Passive investors can deposit small amounts when it suits, then set a timeframe and amount to invest at regular, automated intervals without paying fees.
- Best for: Investors looking to deposit regularly and trade a few times a month.
Our Thoughts on Stake:
- Free trading fees is the biggest selling point of Stake, although the 1.00% FX rate applied to funding and withdrawing USD means Stake makes its money elsewhere. It passes on the SEC and TAF costs to traders, so these fees (as small as they are) are deducted from qualifying trades.
- Best for: Investors who want to trade shares in multiple companies in big or small amounts. The Stake app makes this effortless, and the design and functionality of Stake, in general, will encourage frequent use. Once you've deposit money with Stake, you can buy and sell endlessly with zero trade fees and therefore avoid transactional FX fees (until you withdraw the USD back into NZD).
- Not suitable for: Investors looking to place larger orders to hold for the medium or long term. Hatch's $3 fee is competitive when considering Stake's 1.00% FX fee for funding the trading account and 1.00% fee for withdrawing USD to NZD. Overall, you'll pay twice the FX costs using Stake when compared to Hatch.
Overall
- Sharesies offers an experience very similar to Hatch and Stake, the difference being ongoing membership fees and percentage-of-trade-value based fees (vs Hatch's fixed trade etc). Our view is that Sharesies is best for those wanting smaller-sized investments and exposure to New Zealand opportunities within the same platform.
- Hatch has a simple fee structure, however active traders will incur many $3 trading fees using Hatch, whereas Stake offers unlimited free trading.
- Stake does charge higher FX fees (1% vs 0.50% for Hatch), has minimum funding fees (i.e. $2) and added extras (SEC and TAF fees)
- What platform is best for you depends on how you want to invest and your chosen investing strategy. Active traders will likely prefer Stake for its zero brokerage fees, while more strategic investors will prefer Hatch for its lower FX fees.
Do you have experience with Shareies, Hatch and/or Stake that you'd like to share? Email our research team today.
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