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Sharesies vs Hatch vs Stake - Which one is best for investing in the US markets, and right for you?

Read, learn, and compare Sharesies, Hatch and Stake with help from MoneyHub's financial experts. Let us help you pick the best investment platform for your investing needs
Updated 4 September 2024 

Our Comparison:
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:
  • 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 1.90% of the trade, capped at US$3 per trade. To fund your account from NZD to USD you'll pay an exchange fee of 0.50% on the amount. Sharesies also offers Australian shares, but given Hatch and Stake do not, we've not made any comparisons in this guide. If you're interested in Australian shares, our guide to investing in the ASX has more details.
  • Hatch ​was established in 2018 and was owned by Kiwi Wealth Ltd, (then) a sister company of Kiwibank and part of the Kiwi Group family. In October 2021, it was purchased by FNZ, a high-profile New Zealand Fintech company that operates in 20+ countries. As a background, FNZ provides the back-end financial infrastructure for many investment platforms such as Vanguard, Barclays, Jarden, Lloyds Bank, AMP, ANZ, and BNZ. 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 offers US$3 per trade in line with what Hatch charges. Stake offers an app and web platform and charges 1% FX Fees on both deposits and withdrawals, which is double Hatch and Sharesies' 0.50% fee. Stake is based in Sydney and launched in New Zealand in May 2020.
  • All dollar ($) values below are expressed in USD, which is Sharesies, Hatch and Stake's functional currency by way of trading and fees.
  • Know this about fees: US investing 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.

Important:
Advertising Disclosure: We have a commercial relationship with a number of trusted investing platforms. Please see our Advertising Policy for more details about how we make money.
Related Comparison: Sharesies vs Tiger Brokers (NZ)

What is Sharesies?

Sharesies is New Zealand's first low-fee online share investing platform. Their mission is to "create the most financially empowered generation" with a vision to "give someone with $5 the same money opportunities as someone with $5,000,000". To achieve this, it now offers anybody the opportunity to invest in the NZ, Australian 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 have invested around 1.3 billion dollars. While its origins were New Zealand focused, it has expanded and now offers over 8,000 investments across New Zealand (around 200) , Australian (2,000+) and US markets (5,800+).

More details: Visit Sharesies

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 2020 pandemic. Hatch offers 5,800+ 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. 

More details: Visit Hatch

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 50,000 New Zealand customers. It offers 9,500+ shares, ETFs and OTC stocks. Per Stake's founding team, 77% of their investors have bought and sold shares before, so it appears to appeal to experienced investors. Launched in 2017 in Sydney, Stake was created by a small team, one of whom has worked as an equities trader in the US.

More details: Visit Stake

Sharesies vs Hatch vs Stake - Our Thoughts:

Despite fundamentally offering the same access to US shares, each platform offers a unique selling point and benefit to a specific investor. For this reason, we have distinguished the platforms in our Editor's Choice list. Specifically:
  • Hatch offers fixed USD 3 trades and a 0.50% foreign exchange fee. These two fees limit the profits eaten up by the platform when you sell. We consider Hatch to offer the best value for anyone investing long-term in the US markets.
  • Sharesies, which has grown to offer Australian shares alongside its NZ and US market focus, offers the lowest foreign exchange fee (0.50%) but, for most trade values, the highest brokerage costs in dollar terms (1.90% with a US$5 cap). That does not mean to say it's not an attractive platform - Sharesies is the most popular investing platform in New Zealand for many reasons beyond fees. However, when buying shares in the US, we believe that Hatch offers a better deal for the average investor.
  • Stake, with its US$3 per trade and a 1.00% foreign exchange fee, may appear more expensive than Hatch and Sharesies due to the higher currency fee. However, it sets itself apart with a range of unique features. These include extended trading hours, an education academy, and an advanced web platform. Stake also offers the option to trade on unsettled funds with its paid Stake Black service. For a more detailed overview of these features, please refer to our Stake Review.
Read our comprehensive Hatch Review

Best For
  • Long-term investors
  • Large, place and hold investors
  • Those wanting to use a New Zealand-based platform
​​Read our comprehensive Stake Review

Best For
  • Investors with both long-term and short-term investment goals who require data and tools to support their decision-making process, as well as the option of extended hours trading.
​​Read our comprehensive Sharesies Review

Best For
  • ​Small-scale investors in US shares
  • Existing Sharesies customers wanting exposure to a small amount of US shares ​

Sharesies vs Hatch vs Stake: The Similarities

  1. All platforms only allow funding from your NZD bank account: Sharesies and Hatch require a bank transfer, whereas Stake accepts both bank transfers and debit and credit cards (which charges a fee).
  2. All platforms use the same broker: US share markets investments are processed and held via DriveWealth, a US-regulated broker-dealer.
  3. 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). 
  4. All platforms offer support: Sharesies is limited to email and social media, Hatch offers a message and phone call-back service and Stake has an Auckland phone number as well as a message service operating between around 11:30am and 6:30pm NZ time.

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 None None Optional NZ$15/month for additional features such as day trading on unsettled funds, priority customer support, analyst ratings and price targets
Deposit FX fee 0.50% on the interbank rate, no minimum fee 0.50% on the interbank rate, no minimum 1.00% on the interbank rate, $2 minimum fee
Withdrawal FX fee 0.50% on the interbank rate, no minimum fee 0.50% on the interbank rate, no minimum 1.00% on the interbank rate, $2 minimum fee (with a minimum $10 withdrawal amount)
Brokerage fee 1.9% of the order value, with a cap of US$5 (anything greater than US$265 will reach the US$5 cap) $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) $3 per US trade up to $30,000, or 0.01% per US trade $30,000 or greater
Customer support Free and unlimited - online only and email 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: $0.08 per $10,000*, TAF Fee: $0.000166 per share**, capped at $8.30, ADR Fee: $0.01 - $0.03 per share*** (quarterly)
W-8BEN filing fee Free $1.50 $5
Additional Stake fees explained:
* Fee for the costs involved in the SEC's regulation of equity dealers and the equities market.
** Fee supports FINRA, a U.S. regulatory body, to maintain their operations on a cash-flow neutral basis.
*** Periodic fees to compensate the agent bank providing custodial services on behalf of the ADR.

Total Fees Per Trade - Sharesies vs Hatch vs Stake

Because of the Stake and Sharesies fee changes, 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. When compared to Sharesies, Hatch is cheaper to use in any transaction over US$265, and given the US$3 trade fees, we assume investors will, more times than not, be transacting above this amount.

Our view: It's an easy comparison to make. The fee changes favour Hatch who hold a 'sweet spot' with half the FX fees of Stake and a US$3 trade fee (vs Sharesies which will charge US$5 on anything above US$265).
  • For example, a trade of $500 will cost $5.50 with Hatch ($3 trade fee, $2.50 FX fee), $7.50 with Sharesies ($5 trade fee, $2.50 FX fee) and $8 with Stake ($3 trade fee, $5 FX fee).
  • A trade of $5,000 will cost $25.50 with Hatch ($3 trade fee, $22.50 FX fee), $27.50 with Sharesies ($5 trade fee, $22.50 FX fee) and $53 with Stake ($3 trade fee, $50 FX fee).
The above calculations are based on the following fees:
1. Trade
  • Sharesies - 1.90% of the transaction value (with a cap of US$5)
  • Hatch - $3 per transaction
  • Stake - $3 per transaction, and small regulatory fees also apply, although these are cents or fractions of cents)
2. FX fees:
  • Sharesies - 0.50% of the transaction value
  • Hatch - 0.50% of the transaction value
  • Stake - 1.00% of the transaction value

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:
  1. ​​Monthly charge: Hatch and Sharesies don't have any ongoing membership fees, whereas Stake has an optional NZ$15/month plan for Stake Black to access additional features which primarily appeal to day traders.
  2. Funding and FX rates: Stake is the most expensive option (1% of total). Sharesies and Hatch offer 0.50%. 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.
  3. 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 or more using this link. Stake offers a free share when new investors sign up using this link and fund their account within 24 hours. The share will either be Nike, Dropbox or GoPro.
  4. Orders: 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. 
  5. Website vs App: Shareies and Stake both offer an app, whereas Hatch is web-based only.
  6. 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, analyst ratings, financials and displays related shares. It also covers all the market movers. It also covers all the markets movers, which can be sorted by a number of factors.
  7. Express Funding: Sharesies offers same-day funding. With Hatch, if customers deposit NZD anytime before around 2pm NZT, per our discussions with Hatch, it should be in their Hatch account as USD available to invest use by 5pm NZT. This means that while it's not instant, in most cases it's available within the same day. This Hatch help centre article has more information. Stake offers credit and debit card funding at a surcharge which lets investors get into the market immediately. It's known as FastFunds and has a 0.50% fee (on top of the 1% FX fee). Stake promotes this as an optional feature which allows you speed up your deposit or transfer, whereby Stake provides you the money for trading instantly. This is useful if there is a big move to take advantage of.
  8. Support: As noted above, Sharesies is limited to email and social media, Hatch offers a phone call-back service and Stake has an Auckland phone number open for most of the NZ business hours. 
  9. Access to new listings: All platforms offer new listings.
  10. Extended Hours Trading: Only Stake offers trading during pre- and post-market sessions, allowing investors to trade stocks outside the standard market hours. This feature is particularly beneficial for reacting to news events outside of normal trading hours, giving Stake users the potential to capture opportunities that only become apparent during these times.
  11. Day trading: Sharesies and Hatch are set up to be prohibitive to those wishing to day trade, whereas Stake's premium members (Stake Black) can trade on unsettled funds. Stake allows members to trade as much as they like. 
  12. Ownership: Sharesies is privately owned by local New Zealand investors. Hatch is owned by FNZ (backed by high-profile venture capital firms such as Generation Investment Management, CDPQ, Temasek, and also owned by FNZ employees). Stake is Australian-based and privately owned.

Final thoughts

Still unsure which is right for you? Because all three are free to use, you can register with them all and see which one is right for you based on feel and user experience. However, our calculations confirm Hatch is cheaper for any investment above US$265. Given trade fees are incurred on every transaction, many New Zealanders will likely invest well above US$265. This makes Hatch a best-in-class performer.

​Our Thoughts on Sharesies:
  • Sharesies is the only platform to offer NZ, Australian and US shares and ETFs, as well as selected NZ-based managed funds.
  • Sharesies' 0.50% FX fee matches Hatch and is lower than Stake's (1%).
  • The trade fees are simple - 1.90% (capped at US$5) but it's only cost-effective if you trade below US$265, which would make your trade fees at least 1.90% which makes it harder to make profits on an investment.

​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.
  • However, there is no app, which is unusual for online investing platforms and this is arguably a turn-off for some investors. 
  • Best for: Investors looking to deposit regularly and trade a few times a month.

Our Thoughts on Stake:
  • With $3 trading fees and a 1.00% foreign exchange rate for funding and withdrawing USD, Stake isn't as cheap as Hatch or Sharesies. It passes on the SEC and TAF costs to traders, so these fees (as small as they are) are deducted from qualifying trades.
  • However, unlike Sharesies and Hatch, Stake offers specific features such as extended trading hours, an education academy, and a paid Stake Black service where investors can, among other benefits, trade instantly on unsettled funds.
  • Best for: Professional investors looking to day trade, use market insights, invest during extended hours or re-invest using the same pool of funds (thus not paying regular 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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