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Stake Review

We review Stake, the US stock platform offering US$3 trade fees and an app-based experience for 6,000+ shares and ETFs.
Updated 10 August 2023
Our Review
In this guide, we outline what Stake is, its features, fees and FX conversion fees. We also look at whether it's safe to invest in given its recent entrance to the market, as well as must-know features unique to Stake. Please be aware, all dollar ($) 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.

Important: Sharesies and Stake Fee Change
  • On 21 December 2022, Sharesies announced a fee change that will affect most customers. In short, the average investor's brokerage fee jumps from around 0.50% to 1.90%. This excludes foreign exchange fees which are also set to increase.
  • Stake announced it was ending its 'free trade fees' in March 2023 and charging $3 per US trade up to $30,000, or 0.01% per US trade $30,000 or greater. This guide reflects Stake's fee increase (and references to Sharesies and Hatch where relevant).
  • Please be aware that for most New Zealanders who invest around $500-$5,000, the new fees significantly increase trading fees, making Sharesies and Stake less attractive compared to Hatch.
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. We also compare Stake vs Hatch vs Sharesies.
  3. Other options: Superhero offers US$0 trade fees, and Tiger Brokers offers low FX fees; our Superhero Review and Tiger Brokers Review explain more.
  4. Wanting 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, Flint Wealth and Kernel Wealth have you covered.

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 6,000+ 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, which translates to 4.10 shares (at time of writing).
  • Much lower FX fees and brokerage commissions compared to incumbents Direct Broking and ASB Securities.
  • 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.
  • There's an app for both Apple and Android, both with reasonably positive reviews.
  • 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 (04) 888 0104 being Stake's New Zealand number.
  • 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
  • 'Express' speed for funding your account is the default option, which adds 0.50% to the 1.00% FX fee - you'll need to manually change this to 'standard' to avoid this extra fee.
  • No joint-accounts are offered
  • 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). 
  • No other foreign markets offered (although it's reasonable to say the US provides enough opportunities for even the most bullish investor).
  • Paid features: Trading on unsettled funds is offered by Stake's premium accounts, which cost $15/month.
  • 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.
  • Technical - Stake offers candlesticks charts and granular tick data. Users can access a full suite of analytics using the website or app.

​The Bottom Line
  • Stake offers a tremendous number of options for exposure to US-listed shares and ETFs, with a fee of US$3 per trade.
  • The Stake app makes investing effortless, and the design and functionality of Stake in general will encourage frequent use. 
  • There are no custodial fees for investments, and you won't pay any account management fees.
  • Many New Zealand investment platforms and fund managers limit access to unethical investments - Stake has no such limitations.​

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$0 trade fees, and Tiger Brokers offers low FX fees; our Superhero Review and Tiger Brokers Review explain more.
  4. Wanting 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.

Stake Fees

Stake offers two subscription types, known as 'packs' and resembling a freemium model per the pricing page. For all packs:
  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 on any pack.
  4. Nominal government levies apply - SEC and Trading Activity Fees (TAF) are incurred with each trade, as outlined in this fees PDF. There is a one-off tax filing fee ($5) which covers you for life. Stake does not profit from any of these fees.

Subscription (Pack) Options
Stake offers two packs:
  • The 'Starter' pack is free
  • The 'Black' pack 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).
  • Avoid FX fee altogether: With Stake, you can fund your account directly with another FX service (and avoid Stake's FX service and fee). This means you won't pay the 1% on top of the spot rate.
  • 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 your 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 as this example illustrates. 
  • 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 '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 - What You Need to Know

The claim:
"Make trades in seconds on over 3,500 US Stocks and ETFs"
AND
"Clear, simple and better pricing with no hidden fees".
AND
"Securities insured up to $500k".

Is it true?
Yes, currently there are over 6,000 investment options exist. The pricing is straight forward ($3 per US trade up to $30,000, or 0.01% per US trade $30,000 or greater), with the FX fee being clear and heavily disclosed. With regards to the $500,000 insurance, this is provided by the Securities Investor Protection Corporation (SIPC) to insulate investors from the risk of a brokerage bankruptcy.

The claim:
"Stake exists to put all the opportunity of the US stock market in the palm of your hand. This means making you our partner, not our product, and giving you an unrestricted, unparalleled and fully transparent brokerage experience".

​Is it true?
Yes, Stake gives performance data, comparative shares and lets you add shares onto a watchlist. At the heart of Stake is a trading-focused tool that delivers everything you need to make buying and selling shares effortless.

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”.

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$0 trade fees, and Tiger Brokers offers low FX fees; our Superhero Review and Tiger Brokers Review explain more.
  4. Wanting 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.

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 0.5% FX fee on the interbank rate, with no minimum transfer.
  • Other options: Superhero offers US$0 trade fees, and Tiger Brokers offers low 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, Direct Broking 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, InvestNow or Simplicity as 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
Free
0.50% (charged in USD)
 nil ​
$7.50
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

10 Things to Know About Stake

Stake doesn’t provide any investment advice or investment information (but premium members have been promised "Analyst-level data" in the future)

Stake is a financial platform and does not offer anything further than general guidance on tax and trading basics on its website. Stake is not a financial adviser either.

Stake makes this clear on their website: "The content provided on our website or mobile application is for general information purposes only and is not intended to constitute financial advice, or an invitation or an offer to buy or sell any financial product or security".​

You won't be paid interest on uninvested USD balances (but Stake will be)

As Stake doesn't charge trade fees, it makes money by earning interest on uninvested balances. This is different to Hatch, which pays a small interest rate on funds not invested. By offering 0% interest on balances, Stake is no different to most other platforms.

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).

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

Unlike other platforms (and specifically Direct Broking), 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. 

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 per this announcement. Sharesight is free to use, and our review explains the platform in detail. In time, Stake hopes to bring more data and to let investors track trades, dividends and corporate actions more simply. 

Stake offers fee-free transfers of Hatch portfolios and USD balances to their platform

Stake offers to cover any transfer fees meaning a Hatch portfolio can transfer directly across with no NZD/USD FX fees. Any USD balances transfer at the spot forex rate - you'll get a live rate and all fees shown to you before you confirm your transfer. Once you fund your account in Stake, there are no fees on trading, nor do you pay FX fees on each trade.

Know this: When transferring from another broker with DriveWealth (Hatch, Revolut etc.), you will get a free Dropbox share when you transfer your portfolio over.

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).

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

T​he 6,000+ 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 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.

If you have USD already, you can transfer funds into your Stake account

There is a one-off $5 fee for USD-USD money transfers, which reflects a third-party cost from Stake's US partner. The fee covers the reconciliation process and general transfer management costs. 
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$0 trade fees, and Tiger Brokers offers low FX fees; our Superhero Review and Tiger Brokers Review explain more.
  4. Wanting 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, Flint Wealth and Kernel Wealth have you covered.

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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