Superhero review: ASX and US share trading app
Pay $0 brokerage for US stocks, a $5 flat fee for ASX stocks and $0 for ASX ETFs.
Superhero is a share trading broker which charges a flat $5 brokerage fee for all ASX stocks and zero brokerage for exchange traded funds purchases. It also offers stocks listed on Wall Street at $0 commission per trade. With no monthly account fee for the Basic account and no inactivity fees either, Superhero is one of the cheapest brokers in Australia.
Another key benefit of Superhero is that you can invest as little as $100 per trade, which is lower than the standard $500 minimum deposit for ASX trades.
|Type of broker||
Exchange traded funds
LIMITED TIME ONLY: Get Qantas Frequent Flyer points when you trade with Superhero 2021
New and existing customers can earn up to 5,000 Qantas Frequent Flyer points on the first 10 eligible trades (500 points per trade). After that they will be eligible for 100 points per trade and 1 point per $5 transferred from AUD to USD within the platform.
Investors can also earn up to 10,000 points for transferring their existing US or AU share portfolio to Superhero (5,000 points per transfer).
Superhero has come into the market looking to create a cheaper option for investors on both the fees charged and the minimum trading balances.
As such it should appeal to pretty much any retail investor who is not trading large amounts.
Like all brokers though, it has its limitations. While it is cheaper than some of its competitors it lacks many trading features, has basic functionality and is limited to only a few markets.
- Low brokerage fees
- ASX and US stock trading
- No monthly fees
- Start investing with just $100 per trade
- Live pricing
- Real-time FX transfers
Not so great for
- Minimal trading features
- Can't trade outside of the US or ASX markets
Superhero key features
Flat $5 brokerage fee for ASX stocks
There's a low brokerage fee of just $5 for each ASX trade you make. This is a flat brokerage fee too, so it's the same whether you make 1 or 100 trades in the month. It's also the same fee regardless of the value of your trade.
Zero brokerage US stocks
You can buy and sell US stocks and ETFs for $0 commission per trade. You can also invest in fractions of shares (fractional investing) rather than whole shares, although there's a $100 minimum investment.
Zero brokerage ETFs
You don't need to pay a commission fee to invest in exchange traded funds (ETFs) through Superhero, making it one of Australia's only share trading platforms to offer zero brokerage on ASX products. Note: This offer is for "buy" orders only.
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).
Invest with as little as $100
You can invest in Australian stocks and ETFs with a minimum investment of just $100. This is much lower than the standard minimum investment amount of $500 for Australian companies, as set by the ASX. Superhero is the first Australian broker to allow you to invest in ASX stocks from just $100.
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 then 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.
Superhero offers comprehensive reporting of all transactions and current stock holdings as well as comprehensive tax, performance, dividend and franking credit details.
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
|Brokerage fee per trade||$5 for stocks, $0 for ETFs$0 for US shares|
|Monthly account fee||$0|
|Currency conversion fee||50 pips (US$0.50 for every AU$100 exchanged)|
|Reporting||Basic reporting of your transactions and current holdings as well as comprehensive tax, performance, dividend and franking details on your holdings.|
|Order options||Market order and limit order|
How does it work?
Superhero's proprietary system is unique from other brokers. It allows them to reduce the minimum investment needed (normally $500) for ASX stocks to $100.
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.
According to Superhero's CEO John Winters, the custody model still uses the CHESS system; however, it utilises a single HIN on ASX’s CHESS system. Superhero’s tech consolidates settlements at the end of the trading day to reduce costs.
Is Superhero safe for beginners?
Superhero's limited options and its low minimum deposits allow for investors to have a safer option into the market.
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 towards most retail investors.
In Australia you can trade with Superhero for $5 brokerage and pay $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 those investors looking to trade options other than shares.
Other products offered by provider
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:
- Head to the Superhero website.
- Register your details. Enter your name, email and phone number to start your account registration.
- Verify your identity. You'll need to supply your Australian passport, driver's licence or Medicare card details.
- 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.