For retail investors in Australia, the cost of investing in shares has been a major barrier to participate. This has been the case for as long as we remember. While our counterparts elsewhere in the world enjoyed $0 trades (e.g. Robinhood in the US), we were left with clunky old platforms charging ridiculous fees. That was until a couple of years ago when this landscape started to get more competitive. New platforms being introduced has gradually dropped the costs for the customer. Among them, the Stake’s ASX module has had the most hype. The $3 fees they offer for ASX is a lowest ever Down Under. This post will compare Stake vs CommSec side by side.
BONUS STOCK: If you haven’t used Stake before, by signing up using this link, you will be eligible to receive a free stock. And you will be supporting this publication 😊 This is only a referral link if you want to use the app, and not a recommendation.
Comparison: Stake vs CommSec
| Stake | CommSec | |
|---|---|---|
| Fees to trade in ASX | $3 per trade | • $10.00 (Up to and including $1,000) • $19.95 (Over $1,000 up to $10,000 (inclusive)) •$29.95 (Over $10,000 up to $25,000 (inclusive)) •0.12% (Over $25,000) |
| Fees to trade in US Markets: • New York Stock Exchange • NASDAQ • American Stock Exchange • Includes equities, foreign denominated bonds and managed funds | $0 per trade | • USD $19.95 for trades up to USD $5,000 • USD $29.95 for trades up to USD $10,000 • 0.31% for trades above USD $10,0001,2 |
| Analytics | Below Average | • ASX: Excellent • US: Poor |
| Charts e.g. historical performance | Poor (limited to a 3 year view) | • ASX: Excellent • US: Average |
| Analyst Ratings | Terrible - none at all | • ASX: Excellent • US: Poor |
| Ease of Use: Desktop | Good | • ASX: Average • US: Below Average |
| Ease of Use: Mobile App | Above Average | • ASX: Excellent • US: Terrible - no app and nearly unusable on the mobile browsers. |
| Referral Program | Yes, you and and anyone you refer can get a share worth around $10. | No |
| Streamlined US tax compliance (W-8 Form) | Yes | Yes |
| Currency Exchange Fee (International Stocks) | 0.7% of trade value | 0.6% of trade value |
As you will notice from the table above, in terms of fees Stake is the clear winner. But if falls behind on the Analytics, Data Visualisation and Research (such as analyst ratings and key metrics). You get a bit of that by singing up to Stake Blake but most users don’t.
How hard is it to transfer from one broker to another?
If you are in a position where you want to move between brokers, it’s very straightforward. Nearly all brokers will do it for free (some may charge a tiny exit fee). As a CHESS Sponsored share holder, it’s your right to move brokers whenever you want to. So you’re not ‘stuck’ with anyone. Most platforms have a section/link in your account to initiate a portfolio transfer (e.g. see here for CommSec’s). If not, contact their support team and ask for the steps.
If you want to know about how portfolio transfers work for CHESS sponsored shares, this article explains it using Stake and CommSec as an example.
