Stake breaks barrier with $0 offer for ASX investors
Investors can now trade ASX CHESS-sponsored shares for $0 brokerage.
For the first time in Australia, retail investors will now be charged $0 brokerage on CHESS-sponsored ASX shares, but there's a catch.
Stake is following the US's lead and will allow consumers to trade for $0 brokerage.
According to Stake's CEO and founder Matt Leibowitz this is a huge step forward for consumers.
"It's been 4 years since we pioneered $0 commission for US shares and during that time have maintained the core belief that there's no reason Australians should be stung with high brokerage fees, regardless of the market they're trading on," Leibowitz explained.
But there's a catch
Stake will offer free brokerage, but investors will need to bring across a few friends.
Stake notes that for every new person that is referred they will drop the brokerage the existing investor pays by $1 for 1 year.
With a current brokerage fee of $3 per trade an investor will need to refer 3 people in order to take advantage of this scheme.
This runs separately to the free share Stake gives investors when they refer a friend to the US market.
Investors with Stake will also need to refer 3 new people in order to take advantage of this deal, with existing referrals not counting towards this deal.
What do investors gain access to?
Stake notes there'll be no restrictions on what it offers under this new scheme.
That means investors will gain access to the entire ASX.
"With Stake, those investing on the ASX have everything they need – access to more than 2,000 companies and exchange-traded funds (ETFs), CHESS-sponsorship, instant funding into an AUD wallet, and a dedicated dashboard for their Australian holdings," the CEO said.
"Now they can get all of that with $0 brokerage for as long as they want, given they've got the hustle."
Will others follow?
According to Stake this is a "line in the sand" moment for investors.
It believes that reducing the cost of brokerage will not harm its bottom line.
"The more players operating, the more pressure there is to deliver what's best for consumers while ensuring the long-term viability of their platform. That's what we've done, and we've done it in a sustainable way," Leibowitz said.
"We're able to remain profitable without charging the fees that other higher frequency brokerage houses do."
While Stake's marketing manager James Healey points out investors are "fed up" with paying more for brokerage than need be.
"That's why it was important for us to come in at a sharp price point of $3 while also offering a CHESS-sponsored model," he explained to Finder.
"But we pioneered $0 brokerage in Australia for US shares, and with the ASX, we challenged ourselves to find a way to pioneer $0 here too. Good brokerage doesn't need to be expensive and we are always looking to break the barriers to great access for customers."