Are you looking for a platform in Australian that can invest directly in the US stock market and ETF? Stake is an investment platform that provides access to US stock market and ETF. Stake is also available in New Zealand, United Kingdom and Brazil. They also have plans expanding to more countries in the future.
Invest
in US Stocks and ETFs on Stake. Join today using my referral code kuripot or click on this LINK and we can both get a free stock either GoPro, Dropbox or Nike when
you fund within 24 hours.
It is always a
challenge finding the cheapest and easiest platform to invest in
individual US stock and ETF in Australia. You can buy Australian public listed
ETF that has exposure in US or overseas market but buying individual US stock
doesn't have many option.
There are other
platform which I mention at the bottom of article and each may have its target
audience but I choose Stake among the rest due to its affordability (trade
free), accessibility (mobile app or web), user friendly (UX) and easy to
understand, can start small as low as $50.
Topics covered:
========================================
Why Stake?
Why I use Stake and who is it for ?
Pros and Cons
Get FREE Stock
Stake Fees
(I THOUGHT It's FREE ?
If STAKE is trade FREE, How does Stake make money
Direct USD transfers
Subscription Packs
Withdrawing Funds
How do they pay dividend?
Is it SAFE to invest in Stake?
Account security
What if Stake went down/bankrupt/closed down
Other investment platform I use aside from Stake
Pros and Cons
========================================
Pros:
- NO trading fees
- NO monthly fees on
Starter Pack (I think this is good enough for a start with unlimited trades)
- FREE Stock when
you join (either GoPro,Dropbox or Nike randomly when you fund your account for
the first time)
- Option to buy
fractional shares
- Lower FX rate and
spot rate. They use OFX and its rate is competitive compare to other broker
- You can fund your
Stake using TransferWise
- Search options by
category: Stocks, ETFs, Sector,Values, Strategy, Industry and Region
- No dormancy fee
(eToro and other broker have dormancy fee or inactivity fee)
- Easy to use and
monitor from your mobile app.
Cons:
- Covers only US
market.
- Express delivery
fee (0.5%) and it is set by
default so be mindful to change it to Standard delivery to avoid extra
fees. Refer to stake
fees
- Limit and stop
loss order is only available on premium packs.
- No advance
technical charting. It is intended for mobile app and I don't think you want to
do your charting on mobile devices. You do your charting from other platform
and place order in Stake.
Why I use Stake and who is it for ?
========================================
Aside from the Pros
mention above.
- Stake would fit
for investors who are just starting out with low capital as you can start as
low as $50 AUD deposit and can buy a minimum trade size is $10 but I would
transfer over $100 AUD as the minimum FX fee is $2.00 USD even if you deposit
below $100. Play around with values in making a deposit and observe the deposit
details.
- I use POLi (bank
transfer) as it doesn't have additional fees. Most big banks allow POLi
payment. List of Banks that
use POLi payment.
- Always change the
delivery from Express to Standard to avoid extra fees.
- Option to use TransferWise to fund via Direct USD deposit.
- I can do cost
average to the extreme as I can buy even 1 unit of shares (as long as it is
over $10 trade value). There was a time I place an order of 1 unit with
different limit price.
- Starter Pack(FREE)
is good enough specially for starters or new to investing. You can always
upgrade easily if needed.
There are other alternative platform which I mention at the bottom of this article and each may have its own market target
audience.
Other investment platform I use aside from Stake
========================================
Cheapest broker to
buy Australian StockSelfWealth
Flat rate of $9.50/trade irrespective of trading size.
Use the link below
and get FREE 5 trades to use within your first month
Invest in Managed
Fund global portfolio in Manage
fund
FEE FREE Diversified
stock investing with global exposure
Under $5,000 with
Universe or Index portfolio. (I choose Universe portfolio)
Diversified
portfolio with global market exposure like Google, Facebook, Microsoft etc..
Input the referral code after signing up and depositing
your first $5 investment to get your FREE $5. Code valid until Jun 30, 2020.
Click HERE to know more about Spaceship Voyager
Why Stake?
========================================
Fast - Make trades in seconds on over 3,500 US
Stocks and ETFs.
Affordable - Clear, simple and better pricing
with no hidden fees. See full pricing
here.
Secure - Securities insured up to $500k.
Simple account creation
Instant approval by digital verification
Seamless account funding
Stake Fees
========================================
Stake offers three
subscription pack, Starter, Unlimited and Black. More info on Pricing Pack.
For all packs:
+ Unlimited free
trades - buy and sell as much as you
like with your USD balance
+ FX fee of US 70c per AU$100 ($2 min) ONLY when you
move money in or out of your Stake account from AUD to USD or vice versa. We
never charge FX fees on stock trades.
+ Funding Options:
Take control of your funding with choice and
transparency.
Express funding for +0.5%. (Recommend: Change to
standard to avoid paying express fee). Fund with card for +2%. (Use POLI to
avoid paying extra fee)
Withdrawals incur a $2 bank fee but you’ll always know
the total fees, in dollar amount, upfront.
+ On your first
funding, there’s a $5 fee to complete and lodge your W-8Ben tax form.
+ Nominal government levies apply when you sell:
- SEC fee. SEC
Fee $0.231 per US$10,000 of sale proceeds This is an SEC fee created by the
Securities Exchange Act of 1934 to provide the necessary capital for the US
Government to pay for the costs involved in the SEC’s regulation of equity
dealers and the equities market.
- 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.
(I THOUGHT It's FREE ? - it is TRADE FREE)
There is NO CHARGE
for buying and selling.
Other broker like
Commsec charge from $19.94 USD per trade.
Some of the fees are
unavoidable, mandatory and regulated by US government.
Buying US stock
requires USD therefore FX transfer fees are required even on other platform.
Recommendation to minimize fees:
-It is cheaper to use POLi in funding your Stake
Account (FX rate fee 0.7%).
-Change to standard delivery if you are not in a
hurry to fund your account and avoid additional cost on Express delivery.
-There are 3 packs. Starter pack is FREE of charge while Unlimited is $9/month and Black is $19/month. I think Starter pack is good enough if you are more of a passive
investor.
-Don't be surprise if you get an initial charge of $5
upon your initial deposit as it is for the automatic completion of your US Tax
Form (W8-BEN) which is mandatory if you are holding US stock. Other platform
doesn't charge a fee but you have to manually file it yourself and renew/update
3 years.
I will start using Starter pack: (FREE)
+ Unlimited free
trades
+ Fractional shares
+ Market orders only
Scale up if you need
other functionality. It is easy to switch packs.
Subscription Packs
Stake offers three
packs:
-Starter pack is FREE
-Unlimited pack costs $9/month for
advanced orders (Limit & Stop) functionality.
-Black pack costs $19/month for features
of 'Unlimited' and day trading on unsettled funds with priority customer
support.
If
you are a passive investor who doesn't trade much, Starter pack is good enough and it is FREE.
If STAKE is trade FREE, How does Stake make money?
With no trading
fees, Stake makes money in three distinct ways:
Freemium model - beyond the free account,
Stake offers two paid 'premium' packs (Unlimited and Black)
FX transfers - they partner with OFX (0.7%
fee)
Interest on balances - Stake earns
interest on the USD balances yet to be invested or withdrawn.
Minimum & Maximum order size
The maximum size of
an order in the US market is 10,000 shares, but you can place as many orders
(subject to your cash or holdings) under that amount.
The minimum trade
size is $10.
Withdrawing Funds
You can withdraw
your available funds any time from Stake. Much like funding your account,
the spot FX rate and all applicable fees will be provided to you before you
decide to process your transfer. The minimum amount you can withdraw is $5
(USD).
Transfers can only
go from Stake to your local bank account, which must be in your name.
Before you make your first withdrawal, you'll need to provide your bank
details (BSB & Account Number).
How do they pay dividend?
Dividends are paid
directly into your brokerage account approximately 2-3 trading days after the
payment date. You will be eligible for a dividend if you own a share through
its ex-dividend date.
The amount of the
dividend will be proportional to your holding. This includes fractional shares.
For example, if a company pays a dividend of $10 and you hold 1.34
shares, your dividend will be $13.40 (less any applicable withholding).
Withholding Tax
In the US, there is
a 30% withholding tax on dividend payments, but this is reduced to 15% with the
completion of your W8 form (which we arrange when you join Stake).
When your dividend
is paid, you will see the withholding tax reduction also - you will see this
withholding on your account when your dividend payment is made.
Is it SAFE to invest in Stake?
It’s worth noting
that Stake never holds or touches your money - your money goes directly to our
regulated FX partner (OFX) and then onto DriveWealth. When you withdraw your
funds, it is the same, just the other way back!
Your cash and
securities in the US are held in custody for your benefit with Citibank, one of
the world’s largest banks.
Insurance
The US broker,
DriveWealth, LLC is a US broker-dealer registered with FINRA (US regulator) and
is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims
for cash). You can read more about SIPC at www.sipc.org.
This protects you,
as a non-U.S. citizen with an account at a brokerage firm that is a member of
SIPC. Stake customers are treated the same as a resident or citizen of the
United States.
Please note that
SIPC does not protect against the decline in value of your securities. SIPC
gets involved when a brokerage firm fails and SIPC appoints a trustee to manage
the liquidation of the firm for the protection of customers.
What if Stake went
down/bankrupt/closed down
In the unlikely
situation that Stake goes down, you would still have access to all your cash
and securities.
Our broker partner,
DriveWealth and the custodian (Citibank) will establish access for customers if
anything happens to Stake.
Account security
You have full
control of your account and can enable advanced security in the form of 2
Factor Authentication (using an app like Google Authenticator or Authy) at any
time.
Recommended: TURN
ON 2Factor Authentication. I use Authy as it can sync on my desktop app and mobile app. Always use
2F when available to any of your accounts.
Direct USD transfers
You can fund your
account directly if you have USD already, or would like to transfer any
currency (like AUD etc) into USD using your bank or preferred FX remitter (such
as TransferWise etc).
Making a direct deposit
The key banking and
transfer information for your accounts will be found inside your Account tab on
Stake.
Within the section
“Direct USD Transfer” your specific transfer information is provided - it is
unique to your account and ensures that if followed, your transfer will arrive
as you planned.
To make a direct USD deposit, please also ensure you follow the information in this section.
To make a direct USD deposit, please also ensure you follow the information in this section.
Ensure your
transfers details, found in the “Direct USD Transfers” section, are entered
correctly with your FX provider. In
particular, match your reference number exactly as included.
Ensure that the name on the remitting account is an EXACT match to your Stake
account we are NOT able to accept fund transfers otherwise, for any reason - no
related company accounts, friends & family accounts etc.
Make sure that you are aware of the feeds provided by your bank or FX provider
(i.e wire fees etc).
Stake charges a flat
USD 5.00 fee which is passed through to our US broker dealer to reconcile and
undertake fraud checks on each transfer.
Invest in US Stocks and ETFs on Stake. Join today using my referral code kuripot or click on this LINK and we can both get a free stock either GoPro, Dropbox or Nike when you fund within 24 hours.
When you fund your Stake account for the first time within 24 hours of signing up, you will get a free stock. When claiming stock, these stocks will be randomly issued one of the three available stocks (currently GoPro, Dropbox and Nike).
You cannot claim a
free stock for multiple accounts (i.e. 1 per person under this program). Free
stock is only available when you fund via Stake (on the app or web) and does
not apply when you make a direct USD funding.
Once eligible,
customers can elect to claim free stock or elect not to receive a free stock.
If customers elect
to claim free stock, they agree to the Free Stock Program Terms
& Conditions.
Check out Free Stock Page for more information on
how to get your free share in Nike, Dropbox or GoPro.
===========================================
Here are some of the alternative that allow to buy US
share and ETF in Australia:
1. CommSec
International Share Trading Account
2. nabtrade
3. Westpac
4. ANZ Share
Investing
5. Interactive
Brokers
6. IG Share Trading
7. CMC Markets
8. Saxo Capital Markets
8. Saxo Capital Markets
(Source: www.hellostake.com)
Refer to website
"Disclaimer"
Stake - Access to US Stock Market and ETF
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