Superhero review: ASX and US share trading app

Superhero key features

$2 brokerage fee for ASX stocks and ETFs up to $20,000

There's a low brokerage fee of just $2 to trade Aussie shares and ETFs

You will be charged this fee for all trades up to $20,000, while trades over that amount will incur a fee of 0.01% of the trade value.

Zero brokerage US stocks

You can buy and sell US stocks and ETFs for US$0 commission per trade.

You can also start investing if you have $100 or more. This is done through fractional investing, or buying a fraction of a share.

Real-time FX orders

Currency exchange transfers happen immediately rather than needing to wait days to switch from AUD to USD (in order to trade US stocks).

Low minimum trades

You can invest in Australian and US stocks with a minimum investment of just $10. This is much lower than the standard minimum investment amount of $500 for Australian companies, as set by the ASX.

Cash funds are held with NAB

Your Superhero wallet within the app is used as your cash management account. This is where you can transfer funds so they're ready to be used to place trades. The money in your Superhero wallet account is held with NAB.

You can transfer money into your cash account via bank transfer using PayID or via BPAY.

Tax reporting

Superhero offers comprehensive reporting of all transactions and current stock holdings as well as comprehensive tax, performance, dividend and franking credit details, although this is not with its basic account.

Stop Loss features

Superhero allows investors to put a stop losses. This means investors can automatically sell an Australian share or ETF at pre-determined price, should the shares fall to this level.

Real-time prices

You get live stock pricing on charts and when you place orders. This stands out from other trading platforms that typically charge a monthly account fee to access live prices.

Fees and features breakdown

We tested it out

To help gain a better understanding of the broker, we gave it a road test a little while back.

See our findings below.

How does it work?

Superhero's proprietary system is unique from other brokers. It allows Superhero to reduce the minimum investment needed (normally $500) for ASX stocks to $10.

Essentially, Superhero uses a custodian model which is fairly common among brokers including Vanguard Personal Investor and IG, as well as by micro-investment apps such as Raiz and Spaceship.

This means shares bought on Superhero are beneficially held in your name.

Under this model the shares are still in your name, meaning you will receive dividends and can reinvest like any other shareholder.

If Superhero was no longer operating, your shares could be transferred by you from Superhero to another broker account.

According to Superhero's CEO John Winters, the custody model still uses ASX's CHESS, but it utilises a single Holder Identification Number (HIN) on CHESS. Superhero’s tech consolidates settlements at the end of the trading day to reduce costs.

Is Superhero safe for beginners?

Superhero is one of the better platforms for beginners.

The company has a lot of nifty features for newer investors. These include fee-free buying on ETFs and low minimum deposits.

Given the broker does not offer riskier asset choices such as CFDs, investors avoid the temptation of trading in more speculative assets.

Who should use Superhero?

Given Superhero is a low-cost broker option it is suited to most retail investors.

In Australia, you can trade with Superhero for $2 brokerage and pay US$0 on US trades. This is one of the cheaper products on the market.

With a hassle-free, easy-to-use platform and fee-free transactions, Superhero should appeal to the majority of investors.

It becomes less suitable for investors who want sophisticated research as part of their trading platform or investors looking to trade options other than shares. It is also not suited for investors who are looking to buy shares outside of Australia or the US.

Other products offered by Superhero

Aside from its share trading platform, the company has diversified into other areas.

Superhero has also launched company accounts, including trusts and SMSFs with a corporate trustee.

How to open a Superhero account

You can open an account in just 10 minutes by following these steps:

1. Head to the Superhero website. You can do this by clicking the green "Go to site" button.
2. Register your details. Enter your name, email and phone number to start your account registration.
3. Verify your identity. You'll need to supply your Australian passport, driver's licence or Medicare card details.
4. Fund your account. Once Superhero has verified your identity, you can transfer money to your Superhero Wallet via BPAY or PayID and start trading. You'll find these details by navigating to your wallet in the app.

Superhero has also launched a mobile app version of the platform for iOS and Android users.

To see our hands-on review of the product click here.