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Sharesies joins Stake in lifting brokerage fees: How does it now compare?

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Sharesies has changed its fees structure, implementing a transaction cap.

Sharesies' new fee structure started today.

Under the new structure, you'll pay a transaction fee of 1.9% on the amount you invested, up to a capped amount.

The new pricing model will replace the existing fee structure which has you paying 0.5% on orders for trades up to $3,000 and 0.1% if your transaction is above $3,000.

But the trading platform will have a cap, so larger traders won't necessarily pay more.

Instead, the maximum you'll pay is:

  • $6 per trade on Australian shares
  • NZ$25 per trade on New Zealand shares
  • US$5 per trade on US shares

Even though Sharesies' claim to fame is it allows anyone to trade, under the new model those who are trading smaller amounts are slightly worse off, while those who are trading more come out ahead.

Sharesies' changes in price came into effect today, following an announcement by fellow provider Stake which says come March it is dropping its $0 brokerage on US shares.

Brendan Doggett, Sharesies' country manager for Australia, says "everyone on the Sharesies platform should be able to invest in a way that's competitive, suits them, and delivers great value by limiting the maximum amount they'll pay in fees per order."

How does Sharesies now compare?

Before you rush out and change providers, even with the changing fees, Sharesies is still cheap.

Especially in comparison to much of its competition.

But there is better value out there depending on your trading.

If you're trading US stocks, there are plenty of $0 brokerage offerings out there including:

You can trade Australian stocks for less if you're trading $200 or more and in some instances you can get CHESS-sponsored shares for this price, something Sharesies doesn't offer under its custodian model.

Although it is worth pointing out brokerage fees are not the only fees you'll be charged.

As such, you should keep an eye on these additional fees when you sign up.

Sharesies also has another thing going for it when it comes to retail trading as it still performs well in allowing you to trade for less.

If you're newer to investing and want to start with a smaller amount, a micro-investing account like Sharesies will allow you to get into the market quicker.

Looking for a low-cost online broker to invest in the stock market? Compare share trading platforms to start investing in stocks and ETFs.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances and obtain your own advice before making any trades.
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