Investing in the share market has never been easier for Kiwis. With more online brokerages popping up, offering user-friendly platforms, it’s now simple to start investing—whether you’re taking your first step with a small amount or diving into global markets.
However, with so many options out there, it can be tough to choose the right brokerage. To help you out, we’ve put together a guide comparing some of the top and most trusted brokerages in New Zealand. We’ll break down fees, ease of use, credibility, custodianship, and available markets to help you make an informed decision.
Popular Brokerages for Kiwis
1. Interactive Brokers
- Fees: Known for low commissions on both NZX and international markets. It charges USD 1 per trade for US stocks, with competitive rates for other markets.
- User-Friendliness: Best suited for experienced investors. While it has a steeper learning curve, it offers advanced tools and global market access.
- Credibility: Regulated by the FMA in New Zealand and several other countries, Interactive Brokers is a globally trusted name.
- Custodianship: Your shares are held securely by Interactive Brokers’ custodial service, ensuring regulatory oversight and security.
- Markets: Access to NZX, US, UK, EU, and other global markets.
2. Hatch
- Fees: Hatch offers low fees for trading US stocks, with USD 3 per trade for purchases under $3,000. There are no deposit fees, and it has competitive foreign exchange rates.
- User-Friendliness: Perfect for beginners, Hatch has a simple and mobile-friendly interface, making it easy to trade on the go.
- Credibility: Hatch is FMA-registered as a Designated Business Group (DBG) and works with FNZ, a global leader in custodial services.
- Custodianship: Shares are held by DriveWealth, a US-based, FINRA-regulated broker-dealer, ensuring secure management of your US stock investments.
- Markets: Primarily focused on US markets.
3. Sharesies
- Fees: Sharesies offers low fees for NZX, US, and Australian markets. For example, US stocks cost USD 3 per trade for purchases under $3,000, and 0.5% for larger trades.
- User-Friendliness: Ideal for beginners, Sharesies has a simple interface and even allows fractional share buying, meaning you can start investing with as little as a few dollars.
- Credibility: Fully FMA-registered and NZ-owned, Sharesies is trusted by over 500,000 Kiwi investors.
- Custodianship: Shares are held by FNZ, a trusted custodian ensuring your assets are securely stored and managed.
- Markets: Access to NZX, US, and Australian markets.
4. InvestNow
- Fees: InvestNow has no account fees, but management fees for funds typically range from 0.2% to 1.5%, depending on the fund.
- User-Friendliness: InvestNow is perfect for beginners looking to invest in managed funds and ETFs, with no minimum investment required.
- Credibility: FMA-regulated, InvestNow partners with globally recognised fund managers like Vanguard and BlackRock, offering secure investment options.
- Custodianship: Shares are held by reputable fund managers, such as Vanguard and BlackRock, ensuring your investments are safely managed.
- Markets: Primarily focused on managed funds and ETFs in NZ, US, and international markets.
5. Smartshares
- Fees: Smartshares offers low fees for ETFs, with management fees between 0.2% and 0.5%.
- User-Friendliness: The platform is easy to use, making it great for beginners looking for long-term investment options.
- Credibility: As part of the NZX Group, Smartshares is FMA-regulated, offering transparency and security for Kiwi investors.
- Custodianship: Shares are held securely within the NZX Group custodial service, protecting your investments.
- Markets: NZX and global ETFs.
6. Stake
- Fees: Stake charges $0 brokerage fees for US stock trades, making it a top choice for Kiwis focused on the US market.
- User-Friendliness: With a simple, mobile-first interface, Stake makes it easy to invest on the go and offers fractional share investing.
- Credibility: FMA-regulated and partnered with DriveWealth, a US-based custodian, Stake is a reliable platform for US stock trading.
- Custodianship: Shares are held by DriveWealth, providing secure management under US regulations.
- Markets: Primarily US stocks, with some international exposure.
7. Tiger Brokers
- Fees: Tiger Brokers offers $0 brokerage for US stock trades and competitive pricing for international stocks across various markets.
- User-Friendliness: The platform is designed for both beginners and experienced traders, with a range of educational resources and advanced trading tools.
- Credibility: FMA-regulated and part of the Tiger Financial Group, Tiger Brokers operates under multiple global regulators, offering reliability and security.
- Custodianship: Shares are held by Interactive Brokers, a trusted custodian that provides global market access and regulatory oversight.
- Markets: US, China, Hong Kong, Singapore, and other international markets.
8. Superhero
- Fees: Superhero offers $0 brokerage fees for US and Australian stocks, with $5 per trade for NZX stocks. There are no account fees or fees for deposits/withdrawals.
- User-Friendliness: With a simple interface and mobile-first design, Superhero makes trading easy for both beginners and seasoned investors.
- Credibility: FMA-regulated and NZ-owned, Superhero operates under the Private Wealth Group, a well-established New Zealand investment firm.
- Custodianship: Shares are held by FNZ, a reputable custodian ensuring secure management of your assets.
- Markets: NZX, US, and Australian stocks.
9. Craigs Investment Partners
- Fees: Craigs charges $25 per NZX trade, with higher fees for international trades.
- User-Friendliness: This platform is best for investors seeking personalised advice and tailored investment solutions.
- Credibility: With decades of experience, Craigs is a highly respected FMA-regulated firm in New Zealand.
- Custodianship: Shares are held by Craigs Investment Partners’ custodians, ensuring secure storage and protection of your investments.
- Markets: NZX, US, and other international markets.
10. ASB Securities
- Fees: ASB charges $30 per NZX trade, with discounts for larger trades and some additional fees for extra services like research reports.
- User-Friendliness: The simple platform makes it ideal for beginner investors, especially those who are ASB customers, as it integrates well with your regular banking.
- Credibility: FMA-regulated and part of ASB Bank, ASB Securities offers a high level of security and customer service.
- Custodianship: Shares are held by ASB Securities’ custodial service, ensuring that your investments are safe under the trusted ASB brand.
- Markets: NZX, US, and international stocks.
How to Choose the Right Brokerage for You
Choosing the right brokerage is a big decision, so here are some key points to help you make the best choice:
- Know Your Goals: Are you just starting out or looking to trade globally? If you’re a beginner, platforms like Sharesies or Hatch are easy to use. For more experienced traders, Interactive Brokers and Tiger Brokers offer advanced tools and global access.
- Compare Fees: While low fees are important, don’t forget to check other costs, like currency conversion and custodial fees. Hatch and Sharesies are great for low-cost US stock trading, but Craigs and ASB may be better for local NZX trades.
- Ease of Use: If you’re new to investing, go for something simple and straightforward. Sharesies and Hatch are both mobile-friendly and easy to navigate.
- Trust and Regulation: Always choose a brokerage that’s FMA-regulated for peace of mind. All the brokerages listed here are reputable and trusted in New Zealand.
- Custodianship: Make sure you understand who’s holding your shares. Reputable custodians like FNZ and Interactive Brokers ensure your investments are safe.
- Market Access: Think about where you want to invest. Hatch and Sharesies are great for US stocks, while Craigs and ASB focus on NZ and Australian markets.
Take the time to compare these factors and choose the platform that best suits your needs. The right brokerage will help you take control of your financial future.
