Sharesies, Hatch, and Stake cater to different New Zealand investor profiles. Sharesies is best for beginners and those wanting small-balance access to NZX, ASX, and US markets. Hatch is ideal for buy-and-hold investors making larger US trades ($500+) due to flat fees. Stake suits active traders prioritizing speed and sophisticated US market access.
Choosing the right investment platform is one of the most critical financial decisions a Kiwi investor can make. In the past decade, New Zealand has moved from a market dominated by high-fee traditional brokers to a landscape rich with accessible fintech apps. However, the nuances between Sharesies vs Hatch vs Stake can significantly impact your long-term returns due to differing fee structures, market access, and foreign exchange rates.
Platform Overview: The Big Three
Before diving into the mathematics of fees, it is essential to understand the philosophy behind each platform. While they all offer access to share markets, their target demographics differ.
What is Sharesies?
Sharesies launched with a mission to democratize investing. It is the only platform among the three that offers access to the New Zealand Stock Exchange (NZX) alongside the US and Australian markets. It is characterized by a user-friendly, gamified interface and no minimum investment requirements, making it the default choice for “micro-investing.”
What is Hatch?
Hatch is a Kiwi-wealth platform specifically designed to give New Zealanders access to the US share markets. Utilizing a flat-fee brokerage model, it positions itself as the premier option for “grown-up” investors who are building substantial portfolios and want a straightforward, professional investing environment without the gamification elements.
What is Stake?
Stake originated in Australia and expanded to New Zealand, focusing purely on the US market. It markets itself on speed and sophistication, offering a digital-first experience that appeals to active traders. Stake historically disrupted the market with a zero-brokerage model (though this has evolved) and focuses heavily on a slick mobile experience.
Brokerage Fee Comparison: Where the Costs Hide
The primary battleground for Sharesies vs Hatch vs Stake is the cost to execute a trade. Your trading frequency and volume will dictate which platform is cheapest for you.
How do Sharesies fees work?
Sharesies operates on a percentage-based model (for pay-as-you-go) or monthly plans. As of the most recent pricing updates, standard orders are charged at roughly 1.9% of the trade value, with caps applied to larger orders.
This model is excellent for small trades. If you are buying $50 worth of Tesla, a 1.9% fee is less than a dollar. However, if you are investing $5,000, that percentage fee becomes significant compared to a flat-fee provider.
How do Hatch fees work?
Hatch utilizes a flat-fee structure. They typically charge a flat rate (e.g., $3 USD) for buying or selling shares.
This creates a clear tipping point. If your trade size is small (e.g., $100), a $3 fee represents a 3% hit, which is expensive. However, if you are trading $2,000, that $3 fee is only 0.15%, making it vastly cheaper than a percentage-based model. Hatch is unequivocally the superior choice for “lumpy” investors who invest larger sums less frequently.
How do Stake fees work?
Stake generally charges a flat brokerage fee (e.g., $3 USD) for standard trades, similar to Hatch. However, Stake often runs promotions or offers subscription packs (Stake Black) that provide access to advanced data and unsettled funds for a monthly fee. For the standard investor, Stake and Hatch are often neck-and-neck on brokerage, but the differentiator lies in the FX fees discussed below.
FX Fees: The Silent Return Killer
When buying US shares, you must convert New Zealand Dollars (NZD) to United States Dollars (USD). Platforms charge a spread on this conversion. This is often where these companies make the bulk of their revenue, and it is a cost many investors overlook.
Who has the best Foreign Exchange rates?
Hatch and Sharesies generally charge an FX fee of around 0.5% on the amount converted. This means for every $1,000 NZD you swap to USD, you lose approximately $5 in exchange fees.
Stake typically charges a higher FX fee, often around 1.0% (though this can vary based on promotions or account types). While Stake may compete on brokerage speed or features, a 1% FX fee is double that of its competitors. If you are moving large sums of money back and forth between NZD and USD, Stake’s higher FX fee can erode the benefits of their low brokerage fees.
Pro Tip: If you are a long-term holder, the FX fee is a one-off “entry cost.” However, if you trade frequently and constantly swap currencies back to NZD, high FX fees will destroy your profit margins.
Market Access: NZX, ASX, and Wall Street
Not all platforms give you the keys to the same kingdoms. Your desire for local versus international exposure will heavily influence your choice.
Can I buy NZ shares on Hatch or Stake?
No. Both Hatch and Stake are currently focused exclusively on international markets (primarily the US). Hatch is strictly US markets. Stake offers US markets to NZ customers (and ASX to Australian customers, though access varies by region setup). If you want to buy shares in Air New Zealand, Spark, or Meridian Energy, neither Hatch nor Stake can help you.
The Sharesies Advantage
Sharesies is the only platform in this comparison that offers a “one-stop-shop.” Through a single login, you can buy:
- NZX (New Zealand): Local companies and ETFs.
- ASX (Australia): Mining giants and banks across the ditch.
- US Markets (NYSE, NASDAQ, CBOE): The global tech giants.
For an investor who wants a diversified portfolio containing both local dividends and international growth stocks without managing multiple logins, Sharesies is the winner.
Custody Arrangements and Safety
When you buy a share through an app, do you actually own it? This is a common concern for Kiwi investors.
How is my money protected?
All three platforms utilize a custodial model for US shares, typically partnering with DriveWealth, a US-based brokerage execution firm. This means:
- Bare Trust: The shares are held in a “bare trust” or custodial name on your behalf. You are the beneficial owner. If the platform (Sharesies, Hatch, or Stake) goes bust, your assets are ring-fenced from their creditors.
- SIPC Protection: Because the US shares are held via a US broker (DriveWealth), they typically benefit from SIPC (Securities Investor Protection Corporation) protection, which covers up to $500,000 USD in securities and cash (with a cash limit of $250,000) in the event the US broker fails.
The CSN Nuance (NZX)
For NZX shares on Sharesies, they utilize a custodial service. You do not get your own CSN (Common Shareholder Number) by default; the shares are held in Sharesies’ name on your behalf. This reduces paperwork but means you don’t have direct voting rights in the same way a direct holder might, although Sharesies has introduced mechanisms to allow proxy voting.
User Experience and Features
Beyond the numbers, the “feel” of the platform matters.
Fractional Shares
All three platforms offer fractional investing. This is a game-changer, allowing you to buy $50 worth of a stock that trades at $3,000 per share (like Amazon or Booking Holdings). This feature ensures that portfolio diversification is accessible to everyone, not just the wealthy.
Auto-Invest and Kids Accounts
- Sharesies: Offers robust auto-invest features for NZX and US funds, and has excellent Kids Accounts, making it great for families.
- Hatch: Offers a “Kids Accounts” feature with lower fees for minors, which is excellent for long-term compounding.
- Stake: Geared more towards the individual trader; less focus on family accounts or passive auto-investing structures compared to the others.
Final Verdict: Which Platform Wins?
There is no single “best” platform, but there is a best platform for you.
Choose Sharesies if:
- You are a beginner investor.
- You want to invest small amounts (under $500) regularly.
- You want access to New Zealand (NZX) and Australian (ASX) companies.
- You value a simple, visually appealing interface.
Choose Hatch if:
- You are investing larger amounts ($500+) per trade.
- You are focused on building a long-term portfolio of US shares.
- You want fair FX rates and a professional environment.
- You want to set up accounts for your children with flat-fee structures.
Choose Stake if:
- You are an active trader who values execution speed.
- You want a sophisticated mobile app experience.
- You are interested in their specific rewards or referral programs.
- You are comfortable with slightly higher FX fees in exchange for a dynamic trading experience.
People Also Ask
Which platform is cheapest for US shares in NZ?
For trades under roughly $300-$400 NZD, Sharesies is generally cheaper due to the percentage fee. For trades above $500 NZD, Hatch and Stake become cheaper due to their flat-fee structure, with Hatch often edging out Stake on total cost due to lower FX fees.
Is Sharesies safe for large amounts of money?
Yes. Sharesies uses a custodial system where your assets are held in a separate trust, independent of the company’s finances. They are also audited and subject to New Zealand financial regulations. However, for very large US portfolios, some investors prefer Hatch for the flat-fee structure.
Can I transfer my shares from Sharesies to Hatch?
Yes, you can transfer US shares between platforms. This usually involves a transfer fee (e.g., $50-$100 per holding). You must initiate the transfer request with the receiving broker (e.g., Hatch) who will guide you through the process.
Do I have to pay tax on US shares in NZ?
Yes. You may be liable for tax on dividends. Additionally, if you invested more than $50,000 NZD cost basis in Foreign Investment Funds (FIF), you fall under the FIF tax regime, which is complex. Always consult a tax professional.
Does Stake have a minimum investment?
Stake allows you to buy fractional shares, but there are usually minimum trade sizes (often $10 USD) to ensure the trade can be executed on the market. Sharesies has virtually no minimum (1 cent), making it the most accessible.
Which app is best for day trading?
Stake is generally considered the best of the three for active or “day” trading due to its interface design, speed, and access to unsettled funds (on premium tiers), whereas Sharesies and Hatch are designed more for buy-and-hold investing.
