ASB Securities Review

Company Background & Regulation

Founded in 1994, ASB Securities is a subsidiary of ASB Bank, one of New Zealand's leading financial institutions, which is itself a subsidiary of the Commonwealth Bank of Australia (CBA). This lineage provides ASB Securities with a robust foundation and access to significant financial expertise and resources. The company has positioned itself as a trusted broker, particularly within New Zealand, by leveraging the reputation and stability of its parent company.

ASB Securities is headquartered in Auckland, New Zealand, and operates under the regulatory oversight of the Financial Markets Authority (FMA) of New Zealand. Holding a licence from the FMA ensures that the broker adheres to stringent financial standards and regulatory requirements, which enhances investor confidence. However, specific licence numbers are not publicly disclosed, reflecting a common practice in the region that prioritises regulatory compliance over detailed public availability of licencing data.

Client fund protection is a critical concern for any investor, and ASB Securities addresses this by ensuring that all client funds are held in segregated accounts. This means that client funds are kept separate from the company's operating funds, providing an additional layer of security. In the unlikely event of insolvency, these segregated accounts help safeguard client assets from any claim by creditors against the broker.

Compensation schemes are also a vital aspect of client protection, although New Zealand does not have a specific investor compensation scheme like some other jurisdictions. However, the backing of ASB Bank and its parent, CBA, offers a substantial level of implicit security. The financial robustness of these institutions is an added assurance for clients, making ASB Securities a dependable choice for investors concerned about fund security and regulatory compliance.

Trading Fees & Spreads

ASB Securities has a distinctive fee structure that reflects both its focus on the New Zealand market and its integration with ASB Bank's services. One of the primary aspects of their trading fees is the minimum commission of NZD 30 per trade. This is a flat fee, which can be considered relatively high, especially for investors making smaller trades. However, for larger transactions, this fee may become more competitive in percentage terms.

The broker offers access to trading on the NZX and ASX, with spreads starting from 0 pips. This zero-spread offering is particularly attractive for traders looking to minimise the cost per trade. However, due to the nature of stock and ETF trading, spreads are generally not as significant a cost factor compared to the fixed commission fees.

ASB Securities does not charge overnight swap rates, as it primarily deals with stocks and ETFs, which do not typically involve overnight financing. This can be advantageous for investors who are concerned about the costs associated with holding positions overnight, a common consideration in forex or CFD trading but not applicable here.

Regarding deposit and withdrawal fees, ASB Securities integrates seamlessly with ASB Bank accounts, allowing for free transfers between bank and brokerage accounts. This integration streamlines the financial process for clients who bank with ASB, eliminating any associated costs. However, it's important to note that investors using banks other than ASB may incur standard banking fees for external transfers. Additionally, ASB Securities does not impose any inactivity fees, making it a cost-effective choice for investors who may not trade frequently. When comparing with competitors like Sharesies or Hatch, ASB Securities' fees are less competitive, particularly for smaller investors due to the high minimum commission. However, for those already banking with ASB or those making larger trades, the overall package can be appealing.

Trading Platforms & Tools

Proprietary Web Platform

ASB Securities offers a proprietary web-based trading platform designed for intuitive navigation and ease of use. The platform primarily caters to investors seeking access to the New Zealand Stock Exchange (NZX) and the Australian Securities Exchange (ASX). While its functionality may seem basic compared to more sophisticated trading platforms, it provides essential features such as real-time data, market depth, and the ability to execute trades swiftly. Users can monitor their portfolios and access research reports, which can aid in informed decision-making. However, it lacks advanced charting tools and technical indicators that more experienced traders might expect.

Proprietary Mobile Platform

The proprietary mobile app by ASB Securities extends the capabilities of the web platform to handheld devices, allowing traders to manage their investments on the go. Available on both iOS and Android, the mobile app offers a streamlined interface, focusing on simplicity and ease of access. Users can view their account balances, execute trades, and receive notifications on market movements. While convenient for executing trades and checking portfolios, the app does not support advanced technical analysis or customisation features that some traders might require for in-depth market analysis.

Charting Capabilities and Order Types

The charting capabilities on ASB Securities are relatively basic, offering standard line and candlestick charts. The platform provides essential charting tools suitable for beginner to intermediate traders but falls short for those who require advanced technical analysis. Order types available include market orders, limit orders, and stop orders, providing traders with basic order execution strategies. The absence of more complex order types like trailing stops or conditional orders may limit the strategies that experienced traders can execute on ASB Securities.

Alerts, API/Algo Trading, and Third-party Integrations

ASB Securities does not currently support API access or algorithmic trading, which may deter traders looking to implement automated trading strategies. The platform also lacks integrations with third-party tools, which limits its customisability. Alerts are available for price movements and trade confirmations, but these are basic in nature and do not offer the comprehensive alert systems seen in other platforms. These limitations can make ASB Securities less appealing for advanced traders or those who rely heavily on technology-driven trading strategies.

Account Types & Minimum Deposit

Account Tiers and Features

ASB Securities offers a straightforward account structure with a single account type designed to cater to both beginner and experienced traders. This account provides access to the full range of markets available through ASB Securities, including the NZX and ASX. It also includes features such as real-time quotes, market research, and portfolio management tools. The simplicity of having a single account type can be appealing for those who prefer a no-frills approach to trading, but it lacks the tiered account structure that might offer additional benefits or reduced fees at higher trading volumes.

Demo Account and Islamic Account

Currently, ASB Securities does not offer a demo account, which might be a drawback for new traders wishing to practice and test their strategies without financial risk. Additionally, there is no provision for an Islamic account, which might limit accessibility for traders seeking Sharia-compliant investment options. The absence of these account types can limit ASB Securities' appeal to a broader demographic of traders, particularly those new to the stock market or those with specific religious investment requirements.

Minimum Deposit and Supported Deposit Methods

ASB Securities offers a significant advantage with its $0 minimum deposit requirement, allowing traders to start investing without the barrier of a substantial initial financial commitment. This feature makes the platform accessible to a broad spectrum of investors, from beginners to seasoned traders looking to diversify their portfolios. Supported deposit methods include bank transfers, which integrate seamlessly with ASB Bank accounts, given the brokerage's backing by a major New Zealand bank. However, the lack of support for credit/debit card deposits or electronic wallets may be inconvenient for some users. Despite this, the integration with ASB Bank enables quick and efficient fund transfers, maintaining the platform’s appeal to New Zealand-based investors.

Markets & Instruments

ASB Securities offers access primarily to equity markets, focusing on stocks and exchange-traded funds (ETFs). The platform enables trading on both the New Zealand Stock Exchange (NZX) and the Australian Securities Exchange (ASX), covering a significant range of domestic and Australian equities. This makes it particularly suitable for investors interested in these regions. However, compared to other international brokers, the range of markets is somewhat limited, focusing heavily on these two exchanges.

Within its offerings, ASB Securities provides access to a broad selection of individual stocks and ETFs. While the exact number of instruments per class is not specified, the focus on two major exchanges suggests that the platform supports a comprehensive list of the most actively traded equities in these markets. Investors can expect to find a wide array of sectors represented, from financials to technology, giving a substantial selection to diversify their portfolios within the offered markets.

A unique aspect of ASB Securities is its integration with ASB Bank, a major New Zealand financial institution and a subsidiary of the Commonwealth Bank of Australia. This integration provides a seamless experience for clients who also bank with ASB, allowing them to manage their investments and banking from a single platform. This feature enhances convenience and operational efficiency for clients, particularly those seeking an integrated financial service solution. However, it's important to note that the platform does not extend its offerings to other asset classes such as forex, commodities, or cryptocurrencies, potentially limiting its appeal to more diverse traders.

Safety & Security

ASB Securities places a strong emphasis on the safety and security of its clients' funds and personal information. The broker is regulated by the Financial Markets Authority (FMA) of New Zealand, ensuring compliance with rigorous standards designed to protect investors. One of the key security measures is the segregation of client funds from the broker’s own funds, ensuring that client money is kept separate and is protected even in the event of the broker’s insolvency.

In terms of cybersecurity, ASB Securities employs robust measures to safeguard users' data. The platform utilises advanced encryption technologies to protect sensitive information and transactions. While there is no specific mention of negative balance protection, the straightforward nature of stock and ETF trading, coupled with a 1:1 leverage policy, inherently mitigates the risk of significant losses exceeding the initial investment. The long-standing regulatory history and backing by ASB Bank further enhance the trust and reliability of ASB Securities as a secure environment for investors.

Who Is ASB Securities Best For?

ASB Securities is ideally suited for investors who are primarily focused on the New Zealand and Australian equity markets. Its platform is particularly beneficial for those who value a straightforward and easy-to-use interface without the complexity of more advanced trading tools. The integration with ASB Bank makes it an attractive option for existing ASB Bank clients who wish to manage their financial activities under one roof.

Investors who prefer a low-cost entry into the market will appreciate the zero minimum deposit requirement, although they should be mindful of the relatively high NZ$30 minimum commission per trade, which could impact those making smaller transactions. The broker is also a good fit for long-term investors or those adopting a buy-and-hold strategy, given the limited trading tools and absence of advanced trading features that are more suited to active traders or day traders.

Conversely, ASB Securities may not be the best choice for traders seeking access to a wide range of international markets or asset classes beyond stocks and ETFs. The lack of forex, commodities, and cryptocurrency trading options could be a significant limitation for those looking to diversify their portfolios across a wider range of instruments. Additionally, traders seeking sophisticated analytical tools and platform versatility may find ASB Securities’ offerings somewhat basic.

• Ideal for: New Zealand and Australian market investors.
• Ideal for: ASB Bank clients seeking integrated services.
• Ideal for: Long-term, buy-and-hold investors.
• Not ideal for: Active traders requiring advanced tools.
• Not ideal for: Investors seeking diverse asset classes.
• Not ideal for: Those sensitive to high trading commissions on small transactions.