Comparing Sharesies vs Investnow vs Hatch vs ASB Securities vs Jarden Direct and more

Platforms for US Share buying and selling include Hatch, Stake and, as of August 2020, Sharesies. All three use the same dealer-broker infrastructure provided by DriveWealth. This means they offer a similar number of shares and ETFs to invest in, but there are differences in the fees and features of each platform. 

Important: With interest rates so low, US shares have never been more popular as an investment opportunity. However, caution is needed before making any investment.

Know this: As all US shares and ETFs are traded in USD, the fees and pricing below for each platform are stated in USD.

Because there are foreign exchange fees for funding each platform (from New Zealand dollars), there are a few differences. We compare Hatch, Stake and Sharesies side-by-side below:

FX deposit fee: 0.5% on the interbank rate, no minimum - this is an FX fee for transferring NZD into USD
FX withdrawal fee: 0.5% on the interbank rate, no minimum - this is an FX fee for transferring USD into NZD
Brokerage fee: $3 flat fee to buy or sell up to 300 shares (then it’s $0.01 a share) for all order types (limit, market, stop-loss)
Our review: Hatch

FX deposit fee: 1% on the interbank rate, $2 minimum fee (this is an FX fee for transferring NZD into USD)
FX withdrawal fee: 1% on the interbank rate, + $2 (and minimum $10 withdrawals; this is an FX fee for transferring USD into NZD)
Brokerage fee: $0 to buy or sell, then tiered pricing up to $19 a month subscription fee for access to limit and stop-loss orders and ‘premium features’.
Our review: Stake

FX deposit fee: 0.4% on the interbank rate, no minimum, this is an FX fee for transferring  NZD into USD)
FX withdrawal fee: 0.4% on the interbank rate, no minimum, this is an FX fee for transferring USD into NZD)
Brokerage fee: 0.5% to buy or sell for orders up to $3,000 and an additional 0.1% for amounts over that​. 
Our review: Sharesies

1. Sharesies offers the lowest foreign exchange fees, but depending on the value of the trade (i.e. above USD 750), may be the most expensive option. For example, a US$2,000 purchase of shares would cost US$10 with Sharesies, US$3 with Hatch (assuming it comprises of less than 300 shares) and is free with Stake (excluding FX fees).
   
2. Hatch offers an all-inclusive pricing system which covers all regulatory fee costs, and has the second-lowest FX fees.
   
3. Stake offers a free service, with unlimited buying and selling, although it's foreign exchange fee is the highest.
   

Our view is that each platform offers different things, and appeals to different people. For that reason our suggestion is to read the dedicated reviews of each - Hatch, Stake and Sharesies.

New Zealand has a lot of Fund Management companies who invest your money on your behalf in different assets (like shares and bonds). As the assets increase in value, so does the value of the investment. For this, fund managers charge their investors something known as a 'management fee'. It is a percentage of the total funds under management, for example, 0.25% or 1.50% per year. This means if you have an average investment balance of $10,000 and your management fee is 1.50%, you'll pay $150/year in fees. 

Managed funds can be 'active' (i.e. controlled by a research and trading team who frequently anticipate sharemarket movements and buy and sell shares) or 'passive', i.e. follow an index, such as the NZX 50 or S&P 500.

You can invest with fund managers directly by contacting their customer service team and applying to join. Many have minimum balance requirements (i.e. $5,000), but you can 'trade-in' shares you own as part of your initial investment (for example, if you have $5,000 of shares in A2 Milk, you can convert this into the equivalent dollar investment of a fund. Alternatively, platforms like Sharesies and InvestNow let you invest in many fund managers without the minimum investment.

While this list is by no means a recommendation, locally-operated fund managers that stand out among the crowd (for their strong performance history) include:

• Milford Asset Management
• Pie Funds
• Fisher Funds

Most fund managers will invest in New Zealand and overseas assets, so what fund(s) you pick depends on your risk profile.

Simplicity offers the lowest fee managed fund option:

​Minimum investment: $1,000
​Funds and Fees: Simplicity Investment Funds offer ​five funds, with annual fees set at 0.10% (NZ Shares fund and NZ Bond fund) and 0.31% (Growth fund, Balanced fund and Conservative fund), plus a $20 annual membership fee.
Our review: Simplicity Investment Funds

Share ​Brokers let you buy and sell individual shares, although a fee is charged every time you buy or sell. This is usually a minimum fee (in dollars) or a percentage of the sale. Share Brokers can be online-only (e.g. Sharesies), online and offline (e.g. ASB Securities and Jarden Direct), and offline-only (such as a local Share Broker who you call to buy and sell shares e.g. Craigs Investment Partners and Forsyth Barr, which have offices all over New Zealand.

Share Brokers enable you to trade shares on the NZX, the ASX and/or other markets. Hatch specifically offers US-based shares and doesn't serve anyone looking to invest locally. Unlike Fund Managers who either actively invest or follow an index, you'll need to know what you're doing by way of research before trading any shares.

Trading fees: 0.50% for orders up to $3,000 and then 0.10% for any amount over $3,000
Sharemarkets: NZX, ASX, and US exchanges (NASDAQ, NYSE, CBOE)
Our review: Sharesies

Trading fees: 0.30% on trades above $10,000, with fees starting at $15 for smaller trades. 
Sharemarkets: NZX and ASX (other available via phone)
Our review: ​ASB Securities

Trading fees: $29.90 (or 0.20% of the trade value, whichever is the greater)
Sharemarkets: NZX and ASX (US, Europe and UK options available as well)
Our review: Jarden Direct

Fund Platforms, such as Sharesies and InvestNow, offer several different funds you can invest in. The platforms don't manage your investment; instead, they let you pick the fund(s) you want to invest in and pass the money onto the underlying fund manager. The platforms let you see the fund performance data and track the results. Fund Platforms are popular with all investor types (i.e. those starting, occasional investors and expert-level) and don't have the high minimum investment levels that individual funds often charge. InvestNow doesn't charge any membership fees, which means the platform's offering is effectively free to use. 

Sharesies and InvestNow are the two most prominent New Zealand-based Fund Platforms, and we compare them side-by-side below:

​Minimum investment: $250
​Funds and Fees: 140+ managed funds from 25 well-regarded fund managers, with a platform fee of $0/year. Annual fund fees (including performance fees) range from 0.20% to 3.02%, with many index funds offered.
Our review: InvestNow

​Minimum investment: $0.01
​Funds and Fees: Eight managed funds available alongside 1,000+ ETFs
Our review: Sharesies