Stake raises brokerage for the first time in 5 years: Still worth it?
Stake will raise rates for its US share trading starting in March. Here's what you'll soon be paying.
One of Australia's cheapest share trading platforms has told the market it is lifting rates.
The Australian and US broker will now charge customers $3 per trade on its US transactions. This is in line with its Australian offering.
If you trade more than $30,000 you'll pay 0.01% on all transactions.
The changes come into effect from 4 March 2023.
Stake will allow customers to transfer out for free or reduced fees before the price rise, depending on the transfer type.
"As we transition from challenger to Australia's leading modern brokerage – and amidst rising costs in the current economic environment – this change is part of continuing to build out a robust financial services company while still innovating on products and services for you," the company said in a statement.
Is it still worth it?
Whether or not Stake's new offering is worth it to you all depends on how you use the service and how often you transact.
For those that trade consistently, an increase in cost can make a notable difference. Let's say for example you make 100 transactions a year.
This might be a lot of trading in a year, but if you are that style of investor it will mean you'll now pay $300 more for the service.
But before you rush out and change brokers consider the counterfactual.
There's no denying nobody loves paying more.
However, even with the increase Stake is still one of the cheapest brokers going around.
Especially if you are using both its Australian and US services.
The price rises for Stake do not include its Australian offering, meaning it is still offering the cheapest CHESS-sponsored shares on the market.
Alternatives that offer $0 brokerage
The good news for those who want $0 brokerage on US shares, there are still a few providers that offer this service.
These include:
Although if you consider changing brokers keep in mind additional fees that you'll be charged.
After all, these brokers have to make their money somehow and when it comes to trading US shares these are normally on the foreign exchange rate or inactivity fees.
Looking for a low-cost online broker to invest in the stock market? Compare share trading platforms to start investing in stocks and ETFs.
