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Stake Review

We review Stake, the US stock platform offering US$3 trade fees and an app-based experience for 9,500+ U.S. stocks, ETFs, OTCs and more.
Updated 17 September 2024
Our Review
In this guide, we outline what Stake is, its features, fees and FX conversion fees. Please be aware, all dollar ($) values below are expressed in USD, which is the functional currency of Stake by ways of trading and fees.

Please note, while Stake has launched Australian ASX trading for its Australian-based customers, this exchange is not yet available to New Zealanders Stake customers. We will update the guide when this exchange launches. Our guide to investing in the ASX has current options.
Our review covers:
Please note: MoneyHub is not a Financial Adviser, and this guide has been published to explain Stake and outline the pros and cons of the platform as an investment option.

Essential Stake-related guides:
  1. Worried about what happens to your investments if Stake collapsed or shut down? Our easy to read custodian guide explains what you need to know. 
  2. Stake vs Hatch - We compare Stake against incumbent Hatch side by side.
  3. Other options: Superhero and Tiger Brokers offer US markets investing; our Superhero Review and Tiger Brokers Review explain more.
  4. Want to invest in the US stock market from New Zealand? Our guide explains everything you need to know.
  5. Want to compare ETFs with shares? Our dedicated ETFs vs Shares guide has you covered.
  6. Looking for an investing platform that offers funds rather than shares? Our reviews of InvestNow and Kernel Wealth have you covered.

Special Offer: Exclusive US$30 New Signup Bonus with Stake
  • When you deposit NZ$200 into your new Stake account, you'll receive an additional US$30 to enhance your trading and investing power.
  • Ready to maximise your investment potential? Sign up to Stake here using the promo code "moneyhub30" as your referral code and have a head start with more in your portfolio. 
  • T&Cs apply.
  • In the interests of full transparency, MoneyHub has a financial relationship with Stake for marketing purposes. This does not influence our analysis or opinions. As with any investing app, investing in shares, ETFs, options, and futures carries risks, and past performance is not indicative of future results.

Stake - Pros & Cons

Pros
  • No monthly fees for standard trading features. Stake's Starter pack is $0 month and includes unlimited trades and fractional share purchase.
  • Easy to use interface, with 9,500+ stocks, ETFs & OTC stocks in the 12 US markets.
  • Sign up and get a free share - Stake offers either a share in GoPro, Nike or Dropbox, which it assigns at random using a spin-the-wheel promotion after you fund your account for the first time. The full details are here.
  • Option to buy fractional shares, for example, 0.10 of one Google share, or 0.20 of one Apple share, etc., as well as buy/sell shares in whole dollar amounts. For example, buying $10,000 in Amazon Inc, which translates to 55.5 shares (as at 26 April 2024 when the share price was around $179).
  • Much lower FX fees and brokerage commissions compared to incumbents Jarden and ASB Securities.
  • Extended trading hours: Stake allows trading outside normal U.S. trading hours, offering strategic advantages and flexibility with pre-market and after-hours sessions.
  • The FX rate offered is the spot rate, and you can fund via the app. We compared a NZ$25,000 transfer to USD using Wise and Stake - the difference was 1.001%, including Stake's 1% fee. We then observed a similar result for selling USD to buy NZD too. We conclude that Stake investors get the spot rate when funding or cashing out their accounts. 
  • Limit and Stop orders: You can buy shares at a set price or set an alert to when the share falls to that level. If the market price matches yours or goes lower, your order will be filled. This feature is free of charge and available on all trades.
  • Stock lending: Stocks are typically borrowed by institutional investors and banks, whereby a small payment is made to the stock owner. If you decide to lend your stocks, Stake's partner DriveWealth will borrow them and pay you a fee. They will re-lend your stocks to other parties that might be interested in market making, covering failed trades or meeting margin requirements. You can read more about stock lending here.
  • Day trading is permitted - If you have settled cash you can buy and sell as much as you like on any pack. Stake's paid 'Black' pack ($15/month, or $13/month when paid for yearly) lets you day trade with unsettled funds. We summarise Stack Black below.
  • There's an app for both Apple and Android, both with positive reviews, and a leading web platform, launched in February 2024. We cover the features of the web platform below.
  • You can search for investment options by Sector, Values (Green, Virtue or Vices), Strategy (SmallCap to MegaCap, etc.), Industry and Region, as well as by trading data such as most up/down and most watched. We explore this more in the Specs of Stake section below.
  • Support is accessible via phone and email, with 09 887 9772 being Stake's New Zealand number with specific office hours.
  • Local community - there is a dedicated Reddit New Zealand Stake users forum which has an active following and community feel (you can view without a Reddit account, but to post you'll need to sign up to Reddit).

Cons
  • Limit buy or limit sell orders don't cover fractional shares - if you want to trade using this feature, you'll need to buy and sell entire units of the company (which may make the likes of Alphabet or Amazon shares unaffordable).
  • Paid features: Trading on unsettled funds is offered by Stake's Black account, which cost $15/month.

Be Aware:
  • Technical - Stake offers candlesticks charts and granular tick data. Users can access a full suite of analytics using the website or app.
  • No joint-accounts are offered - this however is standard with investment platforms.
  • No other foreign markets offered (although it's reasonable to say the US provides enough opportunities for even the most bullish investor).
  • No hedging options - unlike many ETF investments available through Sharesies, Superlife, InvestNow or Simplicity, Stake does not provide any foreign currency hedging. This means if the NZD goes up against the USD, and all other things being equal, the NZD value of an investment will be less due to the USD being worth less.

​The Bottom Line

  • Stake stands out for its access to US-listed shares and ETFs. With a straightforward fee structure of US$3 per trade and a 1% FX fee, Stake presents a strong option for investors and traders looking for feature-rich and low-cost access to the US markets.
  • Stake offers unrestricted access to shares and ETFs, including those considered subjectively 'unethical' by specific fund managers and investing platforms (e.g. oil, gambling and certain technology companies). This means investors are free from any restrictions as they build a share portfolio.
  • Stake continues to redefine investing with significant updates and features tailored to enhance user experience and expand investment capabilities. The platform now boasts a leading web interface, arguably a first for New Zealand investors. This new UI is clean and intuitive, allowing for smoother navigation and faster buy/sell, thus making it easier for investors to manage their portfolios effectively.
  • Stake's extended trading hours provide a significant advantage, particularly for those looking to trade in the US stock markets beyond traditional hours. This feature is invaluable for confidently leveraging market movements that occur outside the standard trading hours, such as earnings calls.
  • Unique among all other investing platforms available to New Zealanders, Stake offers Stake Black. This premium service tier offers enhanced features such as advanced trading on unsettled funds, enhanced analytical tools, and many other features at a fixed monthly or annual price. 
  • Stake is committed to investor education through its Stake Academy. This platform offers a range of resources designed to empower investors with the knowledge to make informed decisions. From articles and tutorials to webinars, the Stake Academy is a comprehensive resource for beginner, novice and experienced investors aiming to enhance their understanding of the markets.
  • In summary, Stake's new offerings and updates make it a compelling choice for New Zealand investors looking to access US markets. With a leading tech platform, extended trading hours, premium services, and exclusive educational resources, Stake simplifies US trading and investing while continuing to develop new features and resources.​

Special Offer: Exclusive US$30 New Signup Bonus with Stake
  • When you deposit NZ$200 into your new Stake account, you'll receive an additional US$30 to enhance your trading and investing power.
  • Ready to maximise your investment potential? Sign up to Stake here using the promo code "moneyhub30" as your referral code and have a head start with more in your portfolio. 
  • T&Cs apply.

Stake Fees

Stake provides a base service without any ongoing fees. For those interested in more features, there is an option to upgrade to a premium service called Stake Black. This upgrade offers additional benefits, which come at a cost. Fees and benefits for both options include:
  1. The fees are $3 per US trade up to $30,000, or 0.01% per US trade $30,000 or greater.
  2. You can hold fractional shares
  3. You can day trade - if you have settled cash, you can buy and sell as much as you like.

Stake Black costs $15/month and allows you to trade on unsettled funds, access analyst ratings and price targets, among other features.

How does Stake make money?

Stake makes money in four distinct ways:
  1. Trade fees - $3 per US trade up to $30,000, or 0.01% per US trade $30,000 or greater.
  2. FX transfers - you'll pay 1% when you transfer NZD to USD and USD back to NZD. For example, using an NZD:USD FX rate of 0.66667, if you transferred NZ$1,500, you receive $1,000 before fees and $990 after fees. Stake's $10 fee is 1% of $1,000. You don't pay an FX fee on trades.
  3. Interest on balances - Stake earns a (low) percentage of interest on USD balances yet to be invested or withdrawn.

​​The Specs of Stake and How it Works

1. Signing Up
  • Stake is open to anyone over 18, residing in New Zealand as a tax resident and holding a driver’s licence. If your driver's licence isn't recognised, you'll need to supply your passport, a selfie with your passport and a Government issued ID, a bank statement or a utility bill.
  • Once Stake verifies your information, your account will be approved (usually immediately) and you can deposit money. 

2. Depositing Money
  • Stake accepts bank transfers, credit card, Apple Pay, Google Pay and POLi transfers. You'll see the FX rate and total amount your USD balance will be when you confirm your funding. The exchange rates are made clear before you transfer any money, and all fees are clearly presented.
  • Be aware that 'Instant funding' is the default, and incurs an additional 0.50% fee. You'll need to switch this to 'Standard'. The processing time is three days (standard service) or one day (express service, with a 0.50% additional charge).
  • ​Once your Stake account has received the US dollars, you can start investing.
  • Conversely, if you want to withdraw money out of Stake, because the balance is in USD, it normally takes two days to show up in your NZD bank account.
  • Uninvested money sitting in your Stake account does not earn interest.
3. Trading
  • The Stake website and app offer three core functions, which are effortlessly easy to navigate:
  1. Search - all available investments are listed with their current price and trading volume. You can sort by most up, most down, traction (i.e. stock trades), most traded (by total dollar value), most viewed (by Stake users) and most watched (by Stake users). You can add any stock to your watchlist.
  2. Dashboard - this lists your Positions, Cash Balances and Orders, and details each of your stock's units, average price paid, last price, total holding value, day return and total return. From the dashboard you can trade any stock in your portfiolio.
  3. Watchlist - You can select any stock from 'Search' to appear here, and also prompt a trade.
  • Trading takes two-clicks, with up-to-date data for making buy and sell decisions.
  • Stake works with two partners, DriveWealth (a US-regulated broker-dealer) and OFX (an Australian-based currency exchange provider).

4. Selling, Settling and Keeping Track of Your Portfolio
  • When you sell, all settlement proceeds are shown in a settlement calendar. In the US, trades settle T+2. This means investors cannot access these funds for two days. Only if you have access to trading on unsettled funds (as offered in the 'Stake Black' pack) would you be able to trade using unsettled funds. Once funds clear, you can use them to invest, leave them in the Stake account, or withdraw them to NZD. Settlements are explained in detail here.

Stake-Specific Features (Extended Hours, Stake Black, Web App and Education Resources)

Stake is focused on delivering valuable resources and features to investors of all experience levels. Key features include:

1. Stake Black
Beyond the standard features of Stake, Stake Black is a paid service that is aimed at active investors and offers features that provide immediate operational and analytical advantages. Priced at NZ$15 monthly or NZ$156 annually (a discount to $13/month), this premium service offers:
  • Instant buying power: This feature enables users to reinvest funds immediately after selling shares, bypassing the usual T+2 settlement days. It is particularly valuable for active traders who need to respond quickly to market movements.
  • Comprehensive financials: Direct access to detailed financial data, including income statements, balance sheets, and cash flow statements for the past eight quarters for all US shares and ETFs. This allows for thorough, in-depth analysis without needing to toggle between different financial platforms.
  • Real-time analyst updates: Access to over 150 daily updates on analyst price targets and buy/sell/hold ratings, ensuring investors have the latest data. These updates are provided three hours before the US market opens and continue throughout the trading day.
  • Advanced research tools: Users can utilise enhanced tools for deeper market analysis and investment decision-making.

2. Extended Hours Trading
Extended hours trading on Stake allows for trading outside the normal hours of 9:30am to 4:00pm ET, which translates to very early morning hours in New Zealand. This feature includes:
  • Pre-Market and After-Hours sessions: Trading from 4:00am to 9:30am ET for pre-market and 4:00pm to 8:00pm ET for after-hours, using Electronic Communication Networks (ECNs) to facilitate orders. In NZ time, this is pre-market 8pm-1.30am and after hours 8am - 12pm.
  • Strategic advantages: Access to extended hours allows investors to react to news and earnings reports outside regular trading hours. This means they can respond to events before the broader market.
  • Exclusive use: Stake is one of the few investing platforms, alongside Tiger Brokers, offering extended hours trading. It's not without its risks, such as reduced liquidity, increased volatility, and wider bid-ask spreads, but it offers a lot more flexibility for anyone wanting to trade urgently.
  • More details can be found in our dedicated guide.

3. New Web Platform
The new Stake web platform, launched in early 2024, introduces a series of advanced tools and features designed for an enhanced trading experience:
  • Enhanced charting tools: Interactive charts with features like a pen tool for drawing trend lines, drag-to-select for examining specific periods, and a right-click quick order functionality.
  • Stock comparison tool: This tool allows users to directly compare the performance and key fundamentals of any two US stocks, aiding in better investment decisions.
  • Portfolio visualisation: Users can see a breakdown of their portfolio in NZD, customise and reorder columns in the advanced table view, and assess each stock's percentage in the overall portfolio.
  • Dark mode and more: The interface also includes a Dark Mode for easier viewing and a side panel for quick navigation among frequently accessed stocks or watchlists. A full list of features is outlined on the Stake website.

​4. Stake Academy
The Stake Academy offers an extensive range of educational content tailored to both novice and experienced investors. While other investing apps offer insights and tutorials, it's arguable that Stake leads the field with its US-markets-specific resources. Features include:
  • Specialised content: Detailed exploration of specific investment vehicles like Bitcoin ETFs and over-the-counter (OTC) stocks, providing actionable insights for diversified investment strategies.
  • In-depth courses: Topics include technical analysis, the basics of momentum investing, understanding and using balance sheets, and the specifics of trading US stocks from New Zealand.
  • Practical guides: These guides explain how to implement various trading strategies, such as using stop-loss orders, understanding market indices like the S&P 500, and distinguishing between bullish and bearish markets.
  • Regular updates: New content is frequently added, informing users of the latest trends and strategies.

5. Stock Lending
Stake's Stock Lending feature offers investors the opportunity to earn additional income by allowing institutional players such as investment banks to borrow their U.S. stocks. Stake explains this in detail on their website, which we summarise below:
  • Stake partners with DriveWealth in this arrangement, who may re-lend the stocks to other parties. The arrangement is underpinned by a robust monitoring process to ensure the creditworthiness of the borrowers. The loans are secured with cash collateral held in a bank account to protect the value of the loaned stocks, and any fluctuation in market value is adjusted daily to keep the collateral value at a minimum of 102% of the stock's market value.
  • Investors receive a share of the borrowing fees from DriveWealth, calculated based on the market value of the borrowed stocks and current lending rates, with monthly payments.
  • Stake's Stock Lending program offers participants the freedom to opt in or out at any time. This flexibility allows investors to maintain control over their investment strategy, adapting it to their changing financial needs and market conditions. 
  • Overall, while offering potential financial benefits, we believe Stake communicates the associated risks, including borrower default and market fluctuations, ensuring that investors are well-informed before opting into the program.

Is Stake (and My Money) Safe?

Stake launched in 2017 – can I trust it, where is it based, and is it safe for me to invest?
  • Trading platforms come and go, so it's perfectly reasonable to be cautious about investing overseas with an overseas-based platform like Stake.
  • Stake was co-founded by two Australians, and the Australian-based company is privately owned and venture-backed. This article profiles the company's history.
  • ​Stake is not registered as a 'financial product' by the New Zealand Financial Markets Authority (FMA) due to the fact it only provides access to trading opportunities in the US Share markets. Specifically, Stake partners with DriveWealth, a broker-dealer regulated by FINRA (the Financial Industry Regulatory Authority), which is similar to the FMA although it is a private corporation (not a government organisation) and acts as a self-regulatory organisation (i.e. federal laws do not govern it).
  • Confusing matters slightly, Drivewealth does not hold your securities. Citibank custodies your shares, and is headquartered in New York. The shares are not in your name, so investors must be comfortable relying on standard practice in the US of “held in street name”.

The Competition - Stake vs Hatch (and Sharesies, ASB Securities, Direct Broking, Among Others)

Share trading alternatives:
  • Hatch -  US trades incur a flat $3 per order to buy or sell up to 300 shares. After 300 shares, it's $0.01 a share. The FX fee is 0.50%. Hatch includes all regulatory fees as part of its $3 fee. 
  • Sharesies - 1.90% to buy or sell, with a US$5 cap. Deposits and withdrawals incur a 0.50% FX fee on the interbank rate, with no minimum transfer.
  • Other options: Superhero offers US$2 trade fees, and Tiger Brokers offers low trade and FX fees; our Superhero Review and Tiger Brokers Review explain more.
  • ASB Securities - US share trades incur a 0.80% brokerage fee (with a minimum of $50 per trade, plus agency fee of 0.4% with a minimum of $40 per trade for orders up to $50,000). The FX fees are around 1.50% on the spot rate per our ASB Securities review.
  • Interactive Brokers - US share trades incur a $5.95 maximum brokerage fee; account holders fund their balances independently, meaning a choice of foreign currency companies is available. There is a $0 fee for any ETF trades. However, unlike Stake, Hatch, Jarden Direct and ASB Securities, Interactive Brokers charges a quarterly account management fee to inactive account holders not buying and selling investments regularly. ​

ETF alternatives:
  • There are a number of US and global ETF options available to New Zealand investors without the need to translate NZD into USD. Many also have the benefit of offering currency hedging. 
  • See Sharesies, Superlife and InvestNow as popular examples.

US Shares - Sharesies vs Hatch vs Stake vs Superhero vs Tiger Brokers vs Jarden Direct vs ASB Securities

  • Our table below reflects the differences between trading platforms when buying US$1,500 shares (for example, around 9-10 Apple shares, or 5 Microsoft shares)
  • All fees and costs are in USD
  • Some platforms call their brokerage fee a 'transaction' fee or similar, but for the purposes of our comparison, we have kept the column's title consistent.
  • We've ranked Superhero second in the table due to its conversion fee. Customers are charged NZ$0.50 for every US$100 converted from USD back to NZD. We believe this neutralises the seemingly higher 0.50% fee charged when converting NZD to USD (e.g. US$0.50 per NZ$100 exchanged) for the purchase of US shares or ETFs.
Investment Platform
Brokerage fee
FX fee NZD:USD
Pass-through fees / Agency fee
Total Cost ​
Tiger Brokers (NZ)
Minimum $2 per order
(flat fee to buy or sell up to 200 shares and USD 0.01 for every additional share after that per transaction)
0.35%
$0.003 per share
$7.25
Superhero
$2
0.50% (charged in USD)
 nil ​
$9.50
Hatch
$0.01 per share
minimum $3 per order
0.50%
 nil ​
  $10.50 ​
Sharesies
1.9% up to a cap of $5
0.50%
 nil ​
$12.50
Stake
$3
1.00%
nil
$18.00 ​
ASB Securities
0.60% (minimum of US$50 per trade plus agency fee)
Not disclosed
0.40%
minimum $40 per order
At least $90.00
Jarden Direct
Greater of $69.50 or 0.60% for approved NYSE and NASDAQ Listed Securities
Up to 1.50% (the current margin applied is 0.89% as at 5 May 2023 per their guidance)
nil
$82.85
Special Offer: Exclusive US$30 New Signup Bonus with Stake
  • When you deposit NZ$200 into your new Stake account, you'll receive an additional US$30 to enhance your trading and investing power.
  • Ready to maximise your investment potential? Sign up to Stake here using the promo code "moneyhub30" as your referral code and have a head start with more in your portfolio. 
  • T&Cs apply.

Stake Must-Know Facts

Stake offers up to $500,000 of protection against DriveWealth's bankruptcy

Stake offers protection up to $500,000, which includes a limit of $250,000 for cash claims. This protection is facilitated through Stake's partnership with DriveWealth, a US-based broker-dealer, and is provided by the Securities Investor Protection Corporation (SIPC). The SIPC is a non-profit membership corporation that protects clients of its member broker-dealers when a member fails financially.

When a brokerage firm faces bankruptcy or financial difficulties, the SIPC takes immediate action to recover or replace missing securities and cash, up to the specified limits. This proactive approach, coupled with the SIPC's coverage of up to $500,000, acts as a safety net, ensuring the protection of your brokerage account's assets in the event of the brokerage firm's failure.

For investors using Stake, your investments are shielded from the risk of DriveWealth's potential financial troubles, up to the limits set by the SIPC. However, it's important to note that SIPC protection does not extend to cover market losses. Its primary function is to safeguard against the loss of cash and securities, such as stocks, held by a customer at a financially troubled SIPC-member brokerage firm.

Share and ETF sales do NOT convert back into NZD once sold

Unlike other platforms (and specifically Jarden Direct), selling investments does not trigger an automated conversion of the USD balance into NZD. This means investors can reinvest the balance or wait until the exchange rate is more favourable to make the conversion into NZD.

Be aware: You'll pay a 1% FX fee every time you convert money from your Stake account back into NZD. ​

Dividends get paid back into your Stake USD account

​If you've received an overseas dividend, it will be paid into your USD account. You can then decide to reinvest the sum or withdraw it into NZD. Dividends appear in your USD account approximately 2-3 trading days after the payment date.

In the US, there is a 30% withholding tax on dividend payments, but this is reduced to 15% with the completion of a W8 form (which Stake arranges when you sign up).

Stake offers access to all the US stocks, giving you the same access as anyone living in the US

​T​he 9,500+ US-listed stocks and ETFs Stake offers are available to all New Zealand customers. This includes single stocks on NYSE, NASDAQ etc and ETFs (commodities, inverse, leveraged, index funds etc).

Stake partners with Sharesight to help with tax assessment

Stake doesn't have tax reporting functionality, but it has partnered with Sharesight to make tax-time easier. Sharesight is free to use, and our review explains the platform in detail.

Stake doesn't plan to offer non-US investing at this stage

​The size of the US market (12 stock exchanges) and the low execution costs and highly competitive ecosystem make it a low-cost, big-opportunity market. It's arguable no other country offers the same choice and conditions, which make it economical to offer New Zealanders full access. Other countries do not offer the same conditions.

Stake takes anti-money laundering (AML) seriously, with a triple-check process

Stake does full digital AML checks using Trulioo - this is where your ID is verified. After that, DriveWealth, Stake's platform partner, undertakes their own AML checks. Thereafter, Stake's FX provider (OFX) does their own AML checks. Together, AML, DriveWealth and OFX provide a high level of security. 

Every FX transfer (NZD to USD, and USD to NZD) is subject to AML legislation. Trade activity is monitored in accordance with FINRA and SEC rules (a US requirement under the Patriot Act).
Essential Stake-related guides:
  1. Worried about what happens to your investments if Stake collapsed or shut down? Our easy to read custodian guide explains what you need to know. 
  2. Stake vs Hatch - We compare Stake against incumbent Hatch side by side.
  3. Other options: Superhero offers US$2 trade fees, and Tiger Brokers offers low FX fees; our Superhero Review and Tiger Brokers Review explain more.
  4. Want to invest in the US stock market from New Zealand? Our guide explains everything you need to know.
  5. Want to compare ETFs with shares? Our dedicated ETFs vs Shares guide has you covered.
  6. Looking for an investing platform that offers funds rather than shares? Our reviews of InvestNow and Kernel Wealth have you covered.

Special Offer: Exclusive US$30 New Signup Bonus with Stake
  • When you deposit NZ$200 into your new Stake account, you'll receive an additional US$30 to enhance your trading and investing power.
  • Ready to maximise your investment potential? Sign up to Stake here using the promo code "moneyhub30" as your referral code and have a head start with more in your portfolio. 
  • T&Cs apply.

Do you have an experience with Stake you would like to share with our users? Email our research team who would be delighted to hear from you.
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