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Is Selfwealth The Best Trading Platform In Australia?

SelfWealth is an economical internet brokerage service aimed at experienced investors. Its flat-fee assessment structure will be attractive to anyone contemplating higher-value deals and wanting to avoid costs set as a percentage of the transacted amount.

 

If you’ve already opted to join the trading platform, SelfWealth may be able to provide you with a low-cost site to access not just Australian listed equities but also US markets. It gives tons of options for both seasoned investors and permanent ones. During a 90-day free trial, it may also work for relative newcomers who may peer over the shoulders of successful investors and imitate what they’re doing.

 

This post will take you through some of the top trading platforms in Australia so that you can figure out what’s involved and determine whether it’s the right platform for your requirements.

What is SelfWealth?

SelfWealth is a digital brokerage firm, formally known as SelfWealth Ltd, founded in 2012 and is owned and run by Australians.

 

It offers affordable, furnished apartments and other financial trading in Australia and the United States, with no further commissions or monthly fees except if you choose a premium account.

Who Needs SelfWealth?

SelfWealth has amassed a customer base of 60,000 traders in just a few years. Individuals, businesses, and trusts can all create SelfWealth accounts.

 

It’s geared straight at investors who are already familiar with trading stocks and other investments but are put off by the high percentage of trade-value charges levied by many traditional and internet brokers.

 

Access to the SelfWealth Community, on the other hand, may benefit even those with little experience in the stock market.

 

You can choose to optimise your portfolio based on these top achievers’ assets. Nevertheless, after the first 90 days, you will be required to pay a monthly membership fee to continue viewing the materials.

Selfwealth For Kids

There’s no such thing as starting your financial path too young. Having this in mind, SelfWealth has created the opportunity for your children to establish their trading accounts. You ― or your kid’s grandparents – can create a share trading account for your child, with one or more adults serving as trustees and the youngster serving as the beneficiary.

 

You may begin trading on their behalf while figuring out what needs to be done next. Older children can participate in financial decisions by picking assets that correspond with their interests or values. Holding shares for the long term can result in a large nest egg to help support their schooling or first house deposit. 

 

Children of all ages will discover the value of setting financial goals and putting money down for the future. When they reach the age of 18, you can quickly transfer the trustee account’s shares to their names.

How Do I Sign Up for a Kid’s SelfWealth Account? 

Before you start, it’s a good idea to talk to an accountant about the potential tax ramifications.

 

The application method is reasonably identical to that of creating a regular account, except for an additional ID required in the form of a birth certificate for the child:

 

  • Log in to your SelfWealth account.
  • Click on the avatar in the upper right corner and select ‘Settings.’
  • Click on ‘Open an Additional SelfWealth Trading Portfolio’ then ‘Start Application.’ 
  • Choose ‘Kids (Minor)’ and then follow the steps. The application method is reasonably identical to that of creating a regular account, except for an additional ID required in the form of a birth certificate for the child:
  • When necessary, provide a copy of the child’s birth certificate or an excerpt of the child’s birth certificate.

How SelfWealth Works?

When you join SelfWealth, you will be assigned an ANZ cash account to deposit funds to fuel your ASX trading. OpenMarkets, an extensive retail brokerage company, executes trades that are CHESS-sponsored—Clearing House Electronic SubRegister System and utilises your personal HINHolder Identification Number.

 

That’s a lot of jargon, but it effectively implies that the ASX is registering your ownership stakes and that you are their beneficiary instead of being kept in a shared custodian account.

 

You can acquire a cash limit of $500 in every stock or less if you already own a marketable parcel worth more than $500 in the stock you’re interested in. The cash in your trading account simply limits the most significant amount you may purchase.

 

All transaction orders can be made to trade at the current market price or at a purchasing or selling price limit that you choose.

 

You must transfer funds from your ANZ AUD bank account to a USD bank account to invest in US stocks. A currency exchange fee of 0.6 percent is charged, which is relatively low in the trading industry.

SelfWealth Pricing

Each trade is subject to a fixed cost of AUD 9.50 for Australian transactions and USD 9.50 for US trades. As a result, whether your deal is for $500 or $1 million, you’ll never spend more than $9.50.

 

There are two account types—a basic, free account with no further commission or account-keeping costs beyond the $9.50 per trade and a SelfWealth Premium account with a $20 monthly membership charge.

 

The following are the features of the two account types:

SelfWealth Free

  • A standard price of $9.50 for both US and Australian trade transactions
  • Free from account-keeping cost.
  • Stock evaluation
  • Real-time price data

SelfWealth Premium

  • A standard price of $9.50 for both US and Australian trade transactions
  • Subscription charge of $20 each month
  • Stock evaluation
  • Real-time price data
  • Detailed stock reports
  • Stock sifter
  • Requires you to follow SelfWealth members
  • Portfolio option of choice
  • Portfolio evaluation
  • No restrictions on the number of news articles

What to Trade with a SelfWealth Account?

Both Australian and US assets (ASX-listed stocks, ETFs, property company shares, investment company shares, and fixed income debt securities) are available for trading (all major US exchanges, including NYSE and NASDAQ).

 

However, commerce with other nations, such as the United Kingdom and Japan, is not possible.

How Can I Sign Up for an Account? 

Create a free digital trading account or download an app. To join, you need an active email address and a secure password, as well as your legal name and date of birth, an account pseudonym, contact information, and 100 pieces of identification—driver’s license, Medicare card, passport, and so on.

 

After your account has been authorised, you will be assigned an ANZ cash trading account. You will also have the option to set up a USD trading account.

Pros and cons

Pros

  • A low, one-time trade cost. Pay $9.50 for each deal, no matter how big or little.
  • There are no extra costs unless you choose a SelfWealth Premium account.
  • The free account includes stock research and live prices.
  • Both market price and fixed price transactions are possible.
  • SelfWealth Premium is only available for free for the first 90 days.
  • Members with a SelfWealth Premium account may follow successful investors and build their portfolios based on their findings.
  • Holdings are beneficially owned under your HIN and are not included in a shared custodian account.
  • Funds from a trading account are kept safe in an ANZ bank account.
  • Children can open their share trading account with an adult trustee (s).

Cons

  • The SelfWealth Premium account does not come cheap. After the first 90 days of free access, you’ll have to pay $20 per month.
  • Trading is restricted to Australia and the United States rather than a wide range of foreign markets.

Alternatives to SelfWealth

If you are entirely new to trading investments, want a more traditional broker, or want access to markets outside Australia and the United States, SelfWealth may not be for you.

 

Before you decide, consider the following alternatives:

1. Stake

Stake, a subsidiary of the financial services company Sanlam Private Wealth Pty Ltd, was established in Australia in 2017 and has quickly risen to become one of the top stock trading apps providing non-US consumers with access to US share markets.

 

Its services are now available in New Zealand, the United Kingdom, and Brazil.

 

Stake promises to bring groundbreaking innovations to the world of brokerage applications and looks to be on pace to do so.

 

Stake works in a similar way to most other trading applications. It provides users with access to various alternative investments, allowing them to invest in their chosen companies.

 

If you’re familiar with stock trading, the Stake trading app will seem like home. If you’re new to this form of investment, though, the app has a complete Support section that can answer your questions and help you get started.

 

The Staking app is compatible with any device that can connect to the internet. It requires its users to be over 18 to be able to trade equities.

 

Non-American users, on the other hand, have access to American equities without the necessity for a US trading account, contrary to other trading apps. So, whether you live in Australia or another Stake-operated nation, you may invest in a vast range of stocks and ETFs.

 

The first step is creating an account, which takes only a few minutes, thanks to their simple registration process. However, because the program is only available to individuals over the age of 18, you will be required to provide proof of identification to verify your age. To expedite the login process, ensure you have your ID on hand.

 

If you want to pay for your stocks on Stake, you must credit your account using the “Add Funds” button, either with a bank transfer (direct bank transfer or BPay) or through Online Banking POLi. This will take at least 1-2 business days to process, so plan ahead of time if you want to buy shares.

 

You may fund your account by utilising the Express method on bank transfers and POLi to have your funds cleared the following US trading day. For a charge, you may expedite the process. It will only cost you an additional 0.5 percent of your fundraising amount.

Pros 

  • Allows Australians to trade in US stock markets without the need for a US trading account. This is great for persons living outside of the United States who desire to trade in US stocks.
  • The user-friendly interface and charts are appropriate for investors of varying levels of experience. So, whether or not you are experienced with stock trading, you will rapidly become accustomed to utilising this software.
  • There are no commission or custodial costs. This means that when you use Stake to make a deal, you won’t have to worry about any additional fees.
  • US tax compliance has been simplified. Signing up for stakes involves the automated filing of the US tax form necessary to avoid paying a higher US tax rate on trading earnings. This service is available for a cost of USD 5.
  • Buy and sell fractional shares. You don’t have to acquire an entire share of a high-priced stock like Amazon or Google. Stake allows you to purchase a portion of a claim.
  • Just for signing up, you’ll receive free Nike, Dropbox, or GoPro merchandise. Stake provides new users with free equity simply upon signing up.
  • Available on browser and mobile app. This allows you to trade whether on the road or from the comforts of your own home.

Cons

  • Only allows access to the stock exchanges in the United States. If you’re searching for an app that gives you access to worldwide stocks, including Australian stocks, you’ll have to go elsewhere.
  • Fee for currency exchange. When changing AUD to USD for putting into your Stake trading account, you will be charged a 0.7 percent fee.
  • Funds are being settled slowly. If you do not have a Stake Black account, you must wait for about two days for your cash to determine when you sell out of a position. It’s inconvenient if you want to swap rapidly.
  • Simple graphs using minimal data. The user interface is rather attractive; however, it lacks the sophistication of competing platforms.

2. Superhero

Superhero gives you access to all of the tools you need to invest in the stock market and transfer your earnings in the bank for you, including your savings. You may start investing for as little as $100; it also provides its users with a dashboard where you can see your portfolio at a glance.

 

Another helpful tool is a share trading wallet, which allows you to keep track of your cash flow, and a user reports function, which assists traders in tracking their performance like an expert. The share trading software allows you to do all of this.

 

In short, it’s easy to use, comprehend, inexpensive, and secure, making it an excellent choice for people searching for a straightforward share brokerage solution.

 

Superhero’s main feature is the ability to trade over 2,500 ASX-listed items at quantities smaller than the typical broker’s limit of $500 per trade. The only broker on the market that provides a similar service is Commsec Pocket, and its low-value trading account is limited to seven ETFs.

 

However, Superhero allows traders to invest in any ASX-listed stock and NASDAQ and NYSE-listed US equities.

 

The Superhero Wallet allows users to conveniently track their income stream and shares, while the two-factor verification and high-level cryptography make this a very secure trading platform.

Pros

  • Low-cost trading on the ASX: A flat fee of $5 applies regardless of the amount of the deal or the number of trades you make, with no brokerage fees when buying ETFs.
  • There is no charge. Buy and sell U.S. listed shares and ETFs with no brokerage fees.
  • Purchase fractional shares in the United States: If you want to buy costly stocks like AMZN, which trades for over $3,000, this is an excellent tool to use.
  • Market statistics in real-time
  • As little as $50 each trade is required as a minimum investment.
  • The registration process is simple: Providing information such as your phone number, email, name, date of birth, and address, as well as creating a password and confirming your identification; it takes only a few minutes to get everything set up. 
  • After you sell, trade with unsettled money, which is critical as you make more transactions every day or week. You don’t have to wait for the funds to clear before reusing them when you sell out of a position.
  • Simple-to-use platform: Sleek and easy to use, appropriate for novice investors while being accessible to professionals.

Cons

  • Charting is a fundamental skill. Market data is current, but with only a simple line chart and a maximum lookback period of one year, you’ll most likely find yourself performing your research outside of the platform.
  • Beyond the basic charting, there are no Buy or Sell recommendations, price goals, or stock research to aid your trading selections.
  • There is no detailed financial information about the firm. You’ll have to obtain that amount of data outside of the platform.
  • It is not possible to purchase fractional shares of ASX-listed firms. In Australia, you must buy at least one share of any ASX-listed securities or ETF.
  • Selling your ASX-listed ETFs will cost you $5.
  • There is a $1 cost for transferring money into your Superhero Wallet with BPAY.

3. Spaceship Voyager

Spaceship Voyager is a smartphone app that allows non-experts to develop and grow their investment portfolio while receiving professional advice. An investment scheme might terrify anyone, but this one is reasonably straightforward, and the technology will act as your financial advisor.

 

Fortunately, you do not need any money to begin trading. You may invest in equities in Australia and worldwide with as little as $1 and select from three managed funds.

 

Spaceship Voyager streamlines all of the complex aspects of founding an investing fund.

 

  • Install the app for free. Alternatively, you may create an account from your computer.
  • Fill out the form. This phase isn’t too challenging; simply enter your information into the form, and you’re done.
  • Select a portfolio. You may select one of three portfolios based on how much risk you want to accept and how much money you intend to generate from your investments.
  • Connect with your bank/savings account. Just connect the mobile app to your bank account to top your investments when you’re ready to start. This makes money transfers quick and straightforward.

 

When investing in Spaceship Voyager, you may choose from three kinds of portfolios to meet your needs.

 

Which one is best for you depends on whether you want to invest in substantial global companies that have been around for a long time, want to invest in high-tech enterprises, or whether you want ethical investments.

 

In actuality, you don’t have to choose between the three portfolios. You have the option to invest in all three.

 

Investing with Spaceship is a great way to diversify your portfolio. Voyager is primarily intended for newcomers to the stock market. This app may be perfect for you if you are an investor with minimal expertise in trading accounts and little understanding of investing strategy.

 

The software will help you through the process, giving you the best opportunity of building a successful portfolio. It will tap on financial risk, interest rate risk, liquidity risk, and other concerns. 

Pros

  • You may choose from various portfolios based on risk, performance history, and the sort of firm you want to invest in.
  • The fee structure is affordable and straightforward. There is no fee for balances under $100, and for accounts with a total value of $100 or more, there is a fee of $30 per year (paid at $2.50 per month).
  • Because specialists pick the firms you invest in for each portfolio type, you don’t need any personal experience.
  • You may use this app on your phone and access it from anywhere.
  • You may set up an auto-top-up option to regularly keep your account funded.
  • The investing team refreshes the information regularly.
  • There are no admission or exit costs, and you may start with just $1.

Cons

  • Individual firms are not available for investment; instead, three funds are available.
  • There’s no assurance that strong returns will continue, so previous success isn’t always indicative of future development.
  • The risk of losing money due to a change in currency is quite severe. Because Spaceship does not hedge against currency exposure—one of the reasons for its low costs—currency movements might affect the value of your portfolio in both good and negative ways.
  • Because your portfolio contains investments in foreign nations that may become financially or politically unstable, you are exposed to foreign country risks.

4. CommSec

Commonwealth Securities, CommSec, is Australia’s largest online stockbroking business. The Commonwealth Bank of Australia manages and operates the bank, which was founded in 1995 in Sydney.

 

The majority of CommSec users will trade using the company’s web platform. CommSec, on the other hand, provides phone-in consultation and brokerage services.

 

CommSec is primarily intended for traders and investors who already are familiar with the operation of stock trading systems. New traders on the stock market, on the other hand, may participate since CommSec is incredibly accessible to all types of investors.

 

When you start a CommSec trading account, you may select from several account types.

 

One account type it offers is an app called CommSec pocket, exclusively designed for new folks to the stock market. Users can trade in seven different Exchange Traded Funds (ETFs), ranging from the top 200 Australian corporations to developing markets in rapidly rising global economies.

 

CommSec One, on the other hand, is geared toward aggressive traders who spend more than $3,000 on brokerage each year. You get free extra research, access, and trading tools, as well as a dedicated customer care staff.

 

When you sign up, you may pick between a CommSec CDIA (Commonwealth Direct Investing Account) and a non-CommBank bank account to link your investment activities. However, there are benefits to holding a CDIA account, the most notable of which is the decreased brokerage fees.

Pros

  • Because it is owned by one of the Big Four banks, it is safe and secure.
  • The sign-up procedure is quick and straightforward.
  • Website and smartphone apps are simple to use.
  • There are no account fees for starting or maintaining an account.
  • There are several trading alternatives available, including Australian and foreign equities and ETFs.
  • Available for a variety of account types, including people, corporations, trusts, and SMSFs.
  • Suitable for both novice and expert traders, this site provides market data and insights, business reports and analysis, as well as podcasts and seminars to help you learn about share trading.

Cons

  • Brokerage costs are high when compared to specific smaller online trading platforms.
  • Brokerage costs are higher if you do not wish to create a CDIA account.
  • If you do not trade at least once a year, you will be charged an inactivity fee for your overseas trading account.
  • CommSec One and its associated perks are only available to active traders who spend a significant amount of money on brokerage or have a substantial portfolio.
  • There are no real-time data streams available through WebIRESS unless you are a CommSec One client, execute at least eight trades per month, or are willing to pay a charge, which is presently at $82.50 per month.

5. CMC Markets

CMC Markets, established in the United Kingdom and listed on the London Stock Exchange (LSE), is one of the world’s top stockbroking, forex trading, and CFD (Contract for Difference) platforms.

 

They have a well-known and stable mobile app and a strong customer service reputation. They have won over 50 awards in customer satisfaction, technology development, and trading tools in the last two years. 

 

CMC Markets also offers up-to-date market data, some of which are available for free. It’s more than simply a marketplace. It’s a terrific location to improve your abilities because account users get access to many instructional resources.

 

CMC provides four platforms:

 

  • Next Generation to have access to the whole product line.
  • MetaTrader4 is solely for CFD trading.
  • Stockbroking Standard is a free account that allows you to trade worldwide stocks and ETFs.
  • For a $49 monthly charge, sophisticated traders may use Stockbroking Pro.

Pros

  • Low Australian brokerage costs, especially compared to other long-established brokers like Bell Direct and the big banks’ broking systems.
  • There are no brokerage costs for trading in the US, UK, Japanese, and Canadian markets.
  • Shares, ETFs, options, commodities, currency products, indexes, cryptocurrencies, and government debt are among the many trading alternatives available.
  • The platform has won honours for customer service, its website, and its mobile apps.
  • Market price orders, stop-loss orders, take-profit orders, limit orders, and stop-entry orders are among the order types offered.
  • You’re in the hands of professionals with over 30 years of brokerage experience.

Cons

  • Phone transactions are rather costly. If you prefer to trade over the phone, you can expect to pay roughly $60 for this service.
  • Some worldwide trading has high fees. If you want to trade equities outside of Australia, the United Kingdom, the United States, Canada, or Japan, commission rates are higher, at either 0.59 percent or $59.95.

 

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