Trading app Superhero launches US shares: Here’s how it compares

Posted: 4 July 2021 9:15 pm
News
Superhero-us-stock-trading_1800x1000_Superhero

The Australian share trading platform is offering $0 commission US stock trading as well as fractional investing starting from today.

  • Superhero is now offering both Australian and US shares.
  • $0 commission on US stocks, $5 flat fee on ASX stocks.
  • US stocks can be traded in fractions rather than whole stocks.
  • The platform has selected Finclear and Apex Corp for brokerage services.

Australian low-fee share trading platform Superhero is offering US stocks and ETFs to customers starting from today.

Superhero has also confirmed it will be using Finclear as its ASX execution broker after cancelling its contract with OpenMarkets. It has partnered with Apex Clearing Corporation to manage its US brokerage, custodian and execution services.

Superhero first launched in September last year with $5 brokerage on ASX shares and free trades on ETFs. Today it has around 80,000 customers and plans to release a superannuation product sometime this year.

The decision to offer US stocks comes as thousands of Australians began trading on the stock market in the last 12 months. According to research from Superhero, 39% of people aged 18-45 are now invested in Australian shares while 17% hold US shares.

“The past few years have seen a real shift towards investing in both Australian and U.S. shares, particularly from people aged in their mid twenties to mid forties,” Superhero co-founder and CEO John Winters said today.

How does it compare?

On fees alone, Superhero is one of the lowest costing share trading platforms on the market.

Alongside its $5 flat rate for ASX stocks ($0 for ETFs), Superhero is scrapping the brokerage fee for US stocks. This means you pay no transaction fee to buy or sell US shares. It also charges no monthly account fee and no inactivity fee.

According to Finder data, this update marks Superhero as the cheapest broker for both Australian and US stock trading on the same platform.

Brokers offering $0 commission US shares (*on trades of $1,000)

Broker
US brokerage*
ASX brokerage*
FX fee
Superhero
$0
$5 stocks, $0 ETFs
US$0.50 per AUD$100
IG
$0
$8
0.70%
CMC Markets
$0
$11
0.60%
Stake
$0
Not available
US$0.70 per AUD$100
eToro
$0
Not available
US$0.50 per AUD$100

Superhero is relatively minimal on trading features, however it does offer real-time FX transfers, limit orders, portfolio tracking and comprehensive tax reporting.

In particular, the platform stands out thanks to its low minimum investment of $100 needed to trade ASX stocks, compared to the standard $500 minimum. By also offering fractional shares, investors will be able to invest smaller amounts than many other traditional brokers can offer.

How does it work?

There are now around half a dozen brokers that offer $0 commission US stock trading. However this doesn't mean it's free. Instead of paying a broker fee, investors pay a foreign exchange fee to convert AUD to USD.

To swap AUD to USD on Superhero, you'll be charged a foreign exchange fee of US$0.50 for every AUD$100 transferred.

All Australian share trading platforms must partner with a US brokerage to act as a custodian. Superhero has partnered with Apex Clearing Corporation to manage and execute its US brokerage services, while FinClear is its ASX custodian.

Live US stock prices will also be available through the app. It has partnered with US exchange NASDAQ to offer this service.

The growing popularity of US stock trading has spurred a number of local online brokers to increase their market offering. In December last year, SelfWealth also launched US stock trading along with its ASX offering. Meanwhile, CMC Markets and IG also scrapped brokerage fees on global stocks last year, joining eToro and Stake as $0 commission brokers.

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, CFDs, 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 involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. 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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