Superhero Review - Understanding the US and Australian Shares and ETFs Investment Platform
We review Superhero, a low-cost share investment platform for New Zealand investors, offering access to US and ASX-listed companies and ETFs. We cover its fees, features, and how it compares to other platforms like Sharesies, Hatch, Stake, and Tiger Brokers.
Updated 24 October 2023
Summary:
Our take on Superhero:
To help you understand Superhero, our guide covers the following:
- Superhero is a share investment platform offering investment into US and ASX-listed companies and Exchange Traded Funds (ETFs).
- Superhero charges a US$0 brokerage fee for buying and selling shares in US-listed companies - something unrivalled by any other investing platform. There is an AU$5 brokerage fee if you buy or sell ASX shares or ETFs.
- Superhero has no ongoing account fees, as is the case with other share platforms such as Sharesies, Hatch, Stake and Tiger Brokers (NZ).
- Superhero requires a minimum of AU$100 for each ASX transaction and US$10 for a US-listed transaction.
- Superhero launched in Australia in September 2020 and was originally backed by the founders of Afterpay and ZIP. Its launch is arguably similar to Sharesies, which originally aimed to make investing in Australian companies more user-friendly and accessible. Since launching, it has extended to brokering US shares and, in May 2023, Superhero launched in New Zealand to help Kiwis invest their money long term.
Our take on Superhero:
- Superhero has some of the lowest pricing that is simple to understand; there are no complicated plans, subscriptions or tiered pricing; it’s very straightforward.
- Superhero offers features such as auto-invest, stop-loss, instant FX transfers and live market data free of charge (where other platforms may offer these as part of subscriptions).
- Superhero focuses on one thing and does it very well – an easy way to invest in AU or US shares and ETFs with the lowest fees among the platforms.
To help you understand Superhero, our guide covers the following:
The Specs of Superhero
Superhero customers can invest in the following assets:
1. ASX Shares
Superhero enables users to buy and sell the approximately 2,000 shares listed on the Australian Securities Exchange (ASX). This includes:
2. ASX Exchange Traded Funds (ETFs)
Superhero also allows users to buy and sell ETFs. ETFs are funds that hold many assets, allowing you to diversify your investments easily. Superhero gives you access to around 300 ASX-listed ETFs from several providers, including:
Examples of ETFs are:
3. US Shares
You can trade US shares with US$0 brokerage with instant FX transfers & live market data. They provide access to 4200+ US shares. Some of their top-traded US shares include:
4. US Exchange Traded Funds (ETFs)
Superhero gives you access to 900+ US ETFs. Like US shares, they are US$0 brokerage and also have instant FX transfers and live market data. Per our discussions with Superhero in researching this review, their team confirmed that some of their top traded ETFs are:
1. ASX Shares
Superhero enables users to buy and sell the approximately 2,000 shares listed on the Australian Securities Exchange (ASX). This includes:
- Shares in Australian companies, for example, Xero, Qantas, Woolworths and Commonwealth Bank.
- Australian Real Estate Investment Trusts (A-REITS). A-REITS invest in (primarily commercial) property, such as Scentre Group, which owns Westfield shopping malls in Australia and New Zealand. Our guide to REITs (albeit with a New Zealand focus) explains what this investment type is.
- Listed Investment Companies (LICs). LICs choose and invest money into a portfolio of assets on your behalf, for example, Argo (ASX:ARG).
2. ASX Exchange Traded Funds (ETFs)
Superhero also allows users to buy and sell ETFs. ETFs are funds that hold many assets, allowing you to diversify your investments easily. Superhero gives you access to around 300 ASX-listed ETFs from several providers, including:
- Vanguard
- iShares
- BetaShares
Examples of ETFs are:
- A200 - BetaShares Australia 200 ETF
- HACK - Betashares Global Cybersecurity ETF
- NDQ - Betashares Nasdaq 100 ETF
3. US Shares
You can trade US shares with US$0 brokerage with instant FX transfers & live market data. They provide access to 4200+ US shares. Some of their top-traded US shares include:
- Tesla
- Apple
- Amazon
4. US Exchange Traded Funds (ETFs)
Superhero gives you access to 900+ US ETFs. Like US shares, they are US$0 brokerage and also have instant FX transfers and live market data. Per our discussions with Superhero in researching this review, their team confirmed that some of their top traded ETFs are:
- VOO - Vanguard S&P 500 ETF
- TQQQ - ProShares UltraPro QQQ
- BOIL - ProShares Ultra Bloomberg Natural Gas
Superhero Fees
Superhero's fees come in two main forms:
1. Brokerage fees
Brokerage fees are charged every time you buy or sell shares through Superhero. These are:
US-listed shares:
ASX-listed shares:
2. FX fee: 50 basis points added to the rate
The FX fee is A$0.50 per NZD$100 (AU Trading) and US$0.50 per NZD$100 (US Trading).
The FX fee is converted back and charged in NZD; when transferring back from AUD to USD customers are charged:
For example, if you transfer NZ$100 to USD, you'll pay 50 cents USD, making it around 78 cents (based on an FX rate of NZD:USD 0.63). This fee is different from some other platforms which charge the FX fee in NZD to convert to USD. How this works:
1. Brokerage fees
Brokerage fees are charged every time you buy or sell shares through Superhero. These are:
US-listed shares:
- US$0 for buying or selling shares and ETFs
- Minimum US$10 trade
ASX-listed shares:
- AU$5 flat fee for buying or selling shares and ETFs
- Minimum AU$100 trade
2. FX fee: 50 basis points added to the rate
The FX fee is A$0.50 per NZD$100 (AU Trading) and US$0.50 per NZD$100 (US Trading).
The FX fee is converted back and charged in NZD; when transferring back from AUD to USD customers are charged:
- NZ$0.50 on US$100
- NZ$0.50 on AU$100
For example, if you transfer NZ$100 to USD, you'll pay 50 cents USD, making it around 78 cents (based on an FX rate of NZD:USD 0.63). This fee is different from some other platforms which charge the FX fee in NZD to convert to USD. How this works:
- If you're transferring NZ$100 to USD, with an exchange rate of 0.63, you'll initially have US$63 before the FX fee is applied. After the FX fee of 0.50% (or 50 cents in USD), you'll end up with US$62.50.
- If you convert US$100 back to NZD, you'll be charged NZ$0.50, and the remaining US$99.685 (assuming NZD:USD is 0.63) will be converted back to NZD at the prevailing exchange rate.
- In essence, you pay a fixed fee when you convert NZD to USD, but get an advantage when you convert back to NZD after selling your shares.
How does Superhero Work?
1. Depositing money
You can deposit money into Superhero from your New Zealand bank account, which is free.
2. Buying shares or ETFs
Buying shares and ETFs is as easy as placing an order through the Superhero app. There are just a couple of rules to know when buying shares and ETFs on Superhero:
For example,
3. Selling shares and ETFs and withdrawing money
Like buying shares or ETFs, selling is as easy as placing an order through the Superhero site. Once your shares or ETFs are sold, it takes two business days for the transaction to settle, after which you can transfer back into NZD and withdraw the cash into your bank account.
Unlike other brokers however you are able to trade with unsettled funds from sales at no extra cost.
You can deposit money into Superhero from your New Zealand bank account, which is free.
2. Buying shares or ETFs
Buying shares and ETFs is as easy as placing an order through the Superhero app. There are just a couple of rules to know when buying shares and ETFs on Superhero:
- The minimum investment amount is AU$100 for ASX-listed securities and US$10 for US-listed shares and ETFs.
- Fractional shares are allowed if you're buying US-listed shares - Superhero explains this here.
- However, if you're buying ASX-listed shares or ETFs, you must buy a minimum of one share or one unit in an ETF - You are unable to trade fractional Australian securities.
For example,
- If you buy shares in Insurance Australia Group (IAG, AU$4.85 per share), the minimum investment would be AU$ 101.85 for 21 IAG shares.
- If you buy shares in Commonwealth Bank (CBA, AU$83.50 per share), the minimum investment would be AU$167 for 2 CBA shares.
3. Selling shares and ETFs and withdrawing money
Like buying shares or ETFs, selling is as easy as placing an order through the Superhero site. Once your shares or ETFs are sold, it takes two business days for the transaction to settle, after which you can transfer back into NZD and withdraw the cash into your bank account.
Unlike other brokers however you are able to trade with unsettled funds from sales at no extra cost.
How Does Superhero Compare With Other Options?
The best way to present this is with two tables - one covering ASX investing and one covering US-listed investing.
US Shares - Superhero vs Sharesies vs Hatch vs Stake 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
- 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 |
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 |
$0 |
0.50% (charged in USD) |
nil |
$7.50 |
$0.01 per share minimum $3 per order |
0.50% |
nil |
$10.50 |
|
1.9% up to a cap of $5 |
0.50% |
nil |
$12.50 |
|
$3 |
1.00% |
nil |
$18.00 |
|
0.60% (minimum of US$50 per trade plus agency fee) |
Not disclosed (ASB Securities customers can maintain a foreign currency account [FCA] which reduces exposure to FX margins) |
0.40% minimum $40 per order |
At least $90.00 |
|
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 |
Australian Shares - Superhero vs Sharesies vs Tiger Brokers vs Jarden Direct vs ASB Securities
- Our table below reflects the differences between trading platforms when buying $1,500 shares (for example, around 300 Qantas shares, or 16 Xero shares)
- All fees and costs are in AUD
- 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; customers are charged NZ$0.50 for every AU$100 converted from AUD back to NZD. We believe this neutralises the seemingly higher 0.50% fee (AU$0.50 for every NZ$100) charged when converting NZD to AUD for the purchase of Australian shares or ETFs.
Investment Platform |
Brokerage fee |
FX fee NZD:AUD |
Pass-through fees / Agency fee |
Total Cost |
$0.025% X trade value (minimum $5 per order) |
0.35% |
0.03% X Trade Value |
$10.70, comprised of: $5 (Brokerage) $5.25 (FX) $0.45 (Pass-Through) |
|
Superhero |
$5 |
0.50% |
nil |
$12.50 |
1.9% up to a cap of $15 |
0.50% |
nil |
$22.50 |
|
$29.00 (trade value up to $30,000) |
Up to 1.50% (the current margin applied is 0.89% as at 5 May 2023 per their guidance) |
nil |
$42.35 |
|
$15 (up to and including $1,000) $30 ($1,000 to $10,000) 0.30% (over $10,000) |
Not disclosed (ASB Securities customers can maintain a foreign currency account [FCA] which reduces exposure to FX margins) |
Nil |
$30 |
Apart from the brokerage fees, there are a few other key differences between Superhero and the above platforms:
- Low minimum investments: Superhero offers a low minimum investment (AU$100) in the ASX, although Sharesies and Tiger Brokers (NZ) have no minimum. For US shares and ETFs, it's US$10.
- Live data and limit orders: Superhero offers live market data and limit orders .
Must-Know Superhero Facts
1. It's possible to transfer shares into Superhero from other brokers
If you currently hold ASX-listed shares or ETFs with another broker or on an SRN (Shareholder Reference Number), it's possible to have these transferred over to Superhero. This can be done by completing a transfer form available on their website. Once the transfer is complete, you can manage your holdings through the Superhero platform.
2. Superhero shares are held under custody (similar to how Sharesies, Stake, Tiger Brokers and Hatch operate)
When you buy shares through Superhero, the shares are held in custody on your behalf, i.e. held in Superhero's name. While this can sound daunting, custody arrangements are common in the investing world and highly regulated in Australia and New Zealand. This explainer page on the Superhero website explains more.
3. The brokerage rates lead the market
For US shares, the US$0 brokerage fee leads the market, as does the flat AU$5 brokerage fee for Australian trades. However, an AU$5 fee is still expensive for smaller transactions, especially if you invest the minimum of AU$100. With the AU$5 being a flat fee, larger transactions are more cost-effective.
4. You can only buy whole ASX-listed shares through Superhero
Due to current ASX regulations, you can only buy or sell whole shares.
5. You don't need to buy and sell US-listed shares and ETFs to get exposure to overseas markets
The ASX offers exposure to overseas markets. Many ASX-listed ETFs invest internationally, for example:
- iShares Core S&P 500 ETF - invests in the 500 largest companies listed on the US share markets
- iShares Global Healthcare ETF - invests in healthcare companies from around the world
- BetaShares FTSE 100 ETF - invests in the 100 largest companies listed on the LSE
Superhero Security of Investments
In this section, we answer common questions relating to the ownership of Superhero and how your investments are protected.
Know This First: What happens to my shares if Superhero shuts down? Superhero coves this specifically in this dedicated guide.
1. Who owns the investments purchased using Superhero?
Your shares are held by Superhero in a custody structure. Australian shares are held on your behalf by Superhero Securities, while US shares are held by Apex Clearing Corporation LLC (Apex). Their website states:
2. Who owns Superhero?
Superhero is privately owned by its co-founders John Winters and Wayne Baskin along with key investors.
3. Who is the Custodian?
For Australian securities, assets are held on your behalf by Superhero Securities that operates under an Australian Financial Services Licence (AFSL). Superhero is authorised under its AFSL to provide custody services to its customers.
For US securities, assets are held on your behalf by Apex Clearing Corporation LLC (Apex). Further details can be found here.
Who is the auditor?
Superhero currently utilises the services of BDO Australia Limited as the external auditor.
Know This First: What happens to my shares if Superhero shuts down? Superhero coves this specifically in this dedicated guide.
1. Who owns the investments purchased using Superhero?
Your shares are held by Superhero in a custody structure. Australian shares are held on your behalf by Superhero Securities, while US shares are held by Apex Clearing Corporation LLC (Apex). Their website states:
- "The shares purchased within your Superhero account are yours and cannot be accessed by others, including claims from any creditors of Superhero" and
- "Neither Superhero Securities or Apex Clearing Corporation LLC (Apex) is able to exercise any rights attached to the ownership of your securities, including disposing of, or otherwise dealing in, your securities, unless you instruct Superhero Securities to do so".
2. Who owns Superhero?
Superhero is privately owned by its co-founders John Winters and Wayne Baskin along with key investors.
3. Who is the Custodian?
For Australian securities, assets are held on your behalf by Superhero Securities that operates under an Australian Financial Services Licence (AFSL). Superhero is authorised under its AFSL to provide custody services to its customers.
For US securities, assets are held on your behalf by Apex Clearing Corporation LLC (Apex). Further details can be found here.
Who is the auditor?
Superhero currently utilises the services of BDO Australia Limited as the external auditor.
Our Conclusion
- Superhero has US$0 brokerage for US-listed shares and ETFs plus an easy-to-understand AU$5 brokerage for ASX-listed shares and ETFs. The US-listed fees are unrivalled by the main share platforms.
- The minimum investment amount is only US$10 for US-listed and AU$100 for ASX-listed shares, which makes it accessible for smaller investors.
- Superhero provides access to a large range of investments. Members have a range of 5,000+ US-listed securities and 2,500+ AU-listed securities, including in some of the largest and most well-known Australian companies.
Keep in mind:
- The ASX AU$5 brokerage fee is still high when investing very small amounts, particularly at a minimum of AU$100. However for amounts of AU$500 Superhero is one of the best value offerings on the market.
- Support is limited to live chat or email.
Final thoughts
- The US$0 US share and ETF brokerage fees are the biggest benefits of Superhero. It's particularly attractive for investors just starting with investing in the ASX and US markets, those with smaller amounts to invest, or those intending to make more regular transactions.
- At a time when Stake and Sharesies have increased their fees, Superhero offers something unrivalled - US$0 brokerage fees on US shares. The 50 basis points FX fee is also competitive with Hatch and Sharesies and half the fee charged by Stake. This doesn’t come at the expense of features however with live data, instant FX transfers and the ability to trade unsettled funds all available without the need for premium subscriptions or plans.
- Superhero has some of the lowest pricing that is simple to understand; there are no complicated plans, subscriptions or tiered pricing; it’s very straightforward.
- Superhero offers features such as auto-invest, stop-loss, instant FX transfers and live market data at no additional cost (where other platforms may offer these as part of subscriptions).
- Superhero focuses on one thing and does it very well – an easy way to invest in AU or US shares and ETFs with the lowest fees among the platforms.
Frequently Asked Questions
Beyond the list below, Superhero has a comprehensive library of guides which are designed to answer and explain Superhero-specific questions.
What is the ASX?
ASX stands for the Australian Securities Exchange, which operates similarly to the NZX. It is heavily regulated by ASIC and is the trading house for shares in many well-known Australian companies.
What's better? Shares or ETFs?
Shares give you the most control over your investment as you can pick precisely which companies you wish to invest in. But while you can't control exactly which companies ETFs invest in, ETFs allow you to easily diversify your investment portfolio (as they invest in many companies) and save you from having to research each company you wish to invest in. Ultimately the decision between shares and ETFs comes down to your personal investment preferences and objectives, and Superhero gives you the flexibility to pursue both strategies.
Our guide to shares vs ETFs has more information.
Our guide to shares vs ETFs has more information.
What is the minimum amount required to start investing with Superhero?
The minimum amount is US$10 for US-listed shares and AU$100 for ASX-listed shares.
How do I choose which shares or ETFs to buy?
Choosing which shares to buy depends on your investment goals, risk tolerance, and research. For example, some investors focus on well-established industrial companies with a history of stable growth, while others look for high-growth, smaller companies with the potential for significant returns. Thorough research, understanding the company's financials, and following market news can help you make informed decisions.
One thing is clear - in 2020 and 2021, many New Zealanders bought shares in NZX-listed companies like My Food Bag, Cannasouth, and Rua Bioscience, as well as US listings such as All Birds and Rocketlab. However, since their share price peaks, most of these companies are now worth 50% to 95% less, evaporating everyday investments. If you're unsure what to invest in, we suggest reading more about ETFS - our guide has more details.
One thing is clear - in 2020 and 2021, many New Zealanders bought shares in NZX-listed companies like My Food Bag, Cannasouth, and Rua Bioscience, as well as US listings such as All Birds and Rocketlab. However, since their share price peaks, most of these companies are now worth 50% to 95% less, evaporating everyday investments. If you're unsure what to invest in, we suggest reading more about ETFS - our guide has more details.
What is the difference between ASX and US markets?
The ASX, or Australian Securities Exchange, is the primary stock exchange in Australia, while the US markets include major stock exchanges like the New York Stock Exchange (NYSE) and the NASDAQ. The primary difference between these markets is the listed companies, currency, and time zone in which they operate. Additionally, regulatory environments and tax implications may vary for investors based on residency.
How do I track my investments in Superhero?
As outlined in Superhero's guide, you can track your total Superhero portfolio performance in your Superhero Dashboard. You will also be able to see the following:
- Portfolio Value: This shows how your overall portfolio is performing. You can track your Aussie and US portfolios separately and together.
- Holdings: This tracks the return on each of your investments and their current value, as well as your overall portfolio return.
- Diversification: Understand how your portfolio is diversified across different sectors, including Information Technology, Materials, Energy and Financials.
- Following: Keep track of the performance of the stocks you follow.
