Sharesies

Sharesies is an NZ Micro-investing app that is also now in Australia looking to compete with the likes of Raiz Spaceship & Comsec Pocket.

You can choose from a huge range of companies and exchange-traded funds (ETFs) from Australian, US, and New Zealand stock exchanges

The app has auto-investing also

 

Beware. You cannot transfer your shareholdings to another broker without selling, realizing CGT.

 

One of the issues with fractionalized investing in some of these apps

 

$1.7B FUM is fairly respectable for a NZ mirco investing app I would have thought.

It's not my scene but credit where its due, I know a couple or people who have beer money sums in Sharesies and imo the value it has provided them is an awareness of shares and investment opportunities beyond resi property.

 

Baby steps for some

I know a few people who've got into the markets and are learning via Raiz or Spaceship

 

I don't quite see the point of "microinvesting":, go hard in the real market and buy a real market ETF, or elsewhere if you want speculate, or go home. Keep saving until you can buy about $3k+ tranches, where the brokerage is not killer

If you can't afford 2-3k to start with, save until you can, research the absolute *** out of the market, and just get into it, as 20 years on you'll still be learning.

These new fads are just in it for themselves, making some money on the spread (on top of another maker making it on the spread!), not the investor...

 

True. Don’t see the point of these. And in any case. They still make their money. One way or another. There are not much cheaper than traditional brokers. Let’s take commsec for example. Who charges 0.12% of a transaction. Sharesies charges 0.10%.


That said. Based on their business model it seems most people will be transacting under $3K. Which attracts a whooping fee of 0.5%.

 

Looks like Commsec Pockets fee is $2 up to $1,000 then 0.2% after that

$50 minimum investment

 

Why restrict oneself to commsec pocket and not look at full blown commsec. Or NAB. Just something to think about

 

If dropping in $2.5k at 0.5% that's a fee of $12.50 with Sharesies, compared to NAB's $14.95, or Commsecs and Westpac's $19.95

VAS is at around $94.51 at the moment, so your $2.5k's upcoming dividends wont be enough to buy a full share, but you could use those dividends to buy a fractional share of VAS as you build your treasure chest

It's aimed at beginners who cant contribute $3k per month or more

 

Their NZ model seems to be able to do this XFER at $5 per share

In Aus they say

 

My son who's in his first full-time job recently has Spaceship and has built it up over time to around $7k, but is also going to give Sharesies a try



*When you make your first investment in a company or ETF with SelfWealth, CommSec, or Nabtrade, it must be for at least $500 worth of shares—this is known as a ‘minimum marketable parcel’. After the first investment, you may then be able to buy smaller amounts of shares.

 

For arguments sake, let’s agree you are right. Sheresies is a $2 cheaper.

Now imagine a totally theoretical word where Sheresies goes bust. Heaps of brokers theoretically go bust. History tells me it’s hard to recover money when I don’t have a HIN. Trust or no trust, omnibus or omnichannel. When administrators are called in… it tends to get ugly. What other protections are there? Uh.

Now imagine theoretical word where NAB who is $2 more expensive goes under. I know it’s hard to imagine it, with APRA being all over them and their capitalisations. But for the sake of argument let’s imagine it. Government unlikely to let one of big 4 go under. Still, use all imagination power and it’s gone. Hey. There is a governmental guarantee, isn’t it? Woohoo. Now. Let’s imagine even that is gone. Crazy, I know. But imagine. Turns out they use HIN. So shares are all in the name of actual investor. Not omnibus thing. I take HIN. I rock up to CBA. I tell them to register my shares.

All that for $2. Nice!

Investing change is not imperative. I think investing in itself is a worthy endeavour. Might be a good idea though to pull money and invest every few months. Hey once a year. Twice a year. Or invest cents in Super. Many options that I would prefer to Shersies, Saxo, eToro, Rocket or whatever.

That’s my theoretical input.

 

I take on board what you're saying, there are many pro's and con's as the marketplace evolves, hopefully, all for the better of the individual investor

CHESS or custodian: making the right move with your broker

 

Great. As long as people are aware of risks they are taking up for what I see as marginal benefit, it’s all cool.

Informed decision is usually a good decision, regardless of outcome

 

Is that true?
I moved from ANZ's etrader to Maqro Trade. It was an instead switch. I didn't receive any sell and buy notification or broker fees.

 

My comment was specific to limitation with Sharesies

From Frequently asked questions (FAQs)—Sharesies Australia

Investors in Australia currently cannot transfer investments to or from their Sharesies account.

 

Cash XFER's to the trading account is quick via OSKO, no delays

 

I like the fact that with your dividends you can buy 'part' shares

for example, if I have 1000 units of VAS, and they pay a $2.16 dividend, I get a $2'160 distribution

I can then buy (or DRP) 25 more units...but I have $10 left over, with Sharesies I can invest the full $2'160 as I can buy 25 units, plus a fraction of another unit

 

To clarify under the Vanguard DRP arrangements the cash surplus e.g. $10, is carried forward to the next distribution.