Sharesies Review

Company Background & Regulation

Sharesies, founded in 2017, is a New Zealand-based online investment platform headquartered in Wellington. The platform was established by six founders—Sonya Williams, Leighton Roberts, Brooke Roberts, Richard Clark, Martyn Smith, and Ben Crotty—who aimed to democratise investing by making it accessible to everyone, regardless of their financial background. Sharesies was born out of a need to create an easy-to-use investment interface that encourages people to grow their wealth through the stock market.

Ownership of Sharesies remains largely within the founding team and its early supporters. The company has seen rapid growth since its inception, attracting a diverse user base of individuals keen on exploring the financial markets. Despite its relatively short history, Sharesies has managed to capture a significant share of the New Zealand and Australian retail investment space, capitalising on the increasing trend towards digital investments.

In terms of regulation, Sharesies operates under the jurisdiction of the Australian Securities and Investments Commission (ASIC), which is known for its stringent regulatory standards. ASIC oversight ensures that Sharesies adheres to all necessary financial regulations, providing a secure environment for investors. The platform's compliance with ASIC regulations underscores its commitment to maintaining high standards of transparency and client protection.

Client fund protection is a critical aspect of Sharesies' service offering. The platform ensures that client funds are held separately from its operational funds, providing an additional layer of security. While Sharesies does not participate in a formal compensation scheme, its adherence to regulatory standards offers investors a degree of reassurance regarding the safety of their investments. The company's focus on transparency and security is pivotal in building trust with its user base.

Trading Fees & Spreads

Sharesies offers a straightforward fee structure, focusing on transparency and affordability. One of the key aspects of its pricing model is the absence of spreads in the traditional sense, as the platform operates on a commission-based structure. This means that the cost of trading is primarily determined by the transaction fee per trade, rather than variable spreads. This can be particularly advantageous for investors who prefer a clear understanding of their costs upfront.

The commission structure at Sharesies involves a transaction fee that is charged on each trade. This fee is relatively modest, making the platform accessible to a broad audience. The transaction fee varies depending on the market in which the investment is made. For instance, trades on the New Zealand Exchange (NZX) incur a fee of 0.5% per transaction, while trades on the Australian Securities Exchange (ASX) and US markets also follow a similar fee structure. This transparent fee model is a significant draw for investors looking for predictability in their trading costs.

Regarding overnight swap rates, Sharesies does not impose additional charges for holding positions overnight. This is primarily because the platform is geared towards long-term investors rather than short-term traders. The absence of overnight fees aligns with Sharesies' ethos of encouraging sustainable investment practices, making it a suitable choice for investors who prefer to hold positions over extended periods without incurring additional costs.

Deposit and withdrawal fees on Sharesies are also designed to be investor-friendly. The platform does not charge any fees for depositing funds, allowing users to start investing with as little as $1, which is the minimum deposit requirement. Withdrawal fees are likewise minimal, ensuring that investors can access their funds without significant deductions. Additionally, Sharesies does not impose any inactivity fees, which is a considerable advantage over many competitors who charge clients for dormant accounts. Comparatively, other platforms may charge both spreads and inactivity fees, making Sharesies an attractive option for new and casual investors.

Trading Platforms & Tools

Web Platform

Sharesies offers a proprietary web-based trading platform designed to cater to both novice and experienced investors. The platform is intuitive and user-friendly, making it accessible for those new to investing while still providing enough functionality for seasoned traders. The web platform supports trading across New Zealand, Australian, and US markets, allowing users to buy and sell shares directly from their web browser without the need for downloads or installations. The platform's layout is clean and straightforward, focusing on ease of navigation and efficient trade execution.

Mobile Platform

The Sharesies mobile app is available for both iOS and Android devices, delivering a seamless trading experience on the go. Like its web counterpart, the mobile app is designed with simplicity in mind, offering easy access to market information and trading functionalities. Users can execute trades, monitor their portfolio, and stay updated with the latest news and market movements. The mobile app includes push notifications for price alerts and other account updates, ensuring that investors are always informed of critical changes in their portfolios.

Charting Capabilities

While Sharesies provides basic charting tools suitable for casual investors, it lacks the advanced charting features found in more sophisticated trading platforms. The charts allow users to view historical price data and basic technical indicators, but they do not support in-depth technical analysis or customisable charting options. This limitation might deter traders who rely heavily on technical analysis, but it suffices for those who prefer a straightforward, no-frills approach to investing.

Order Types, Alerts, and Integrations

Sharesies supports market orders and limit orders, which cover the basic needs of most investors. However, it does not offer more complex order types such as stop-loss or trailing stop orders, which might be a drawback for traders looking for comprehensive risk management tools. The platform provides basic alert functionalities, including price alerts to notify users when a stock reaches a particular price point. Currently, there is no support for API or algorithmic trading, and Sharesies does not integrate with third-party tools, which may limit its appeal to tech-savvy traders who prefer customisable trading environments.

Account Types & Minimum Deposit

Account Tiers and Features

Sharesies offers a straightforward account structure with no tiered accounts, making it easy for investors to understand and manage their investments. The platform is particularly popular for its low barriers to entry, as there is no minimum deposit requirement. This accessibility is complemented by the ability to purchase fractional shares with as little as $1, allowing investors to start building their portfolios without significant capital. The platform's simplicity and low cost make it an attractive option for beginners and those looking to dip their toes into the stock market.

Demo Account and Islamic Account

Currently, Sharesies does not offer a demo account, which might be a limitation for users who want to familiarise themselves with the platform's features and functionalities without risking real money. Additionally, there is no Islamic account option, which could be a consideration for traders who require Sharia-compliant investing solutions. The lack of these options suggests that Sharesies primarily targets casual investors who are confident in starting with live accounts.

Minimum Deposit and Deposit Methods

One of Sharesies' standout features is its lack of a minimum deposit requirement, which allows investors to start trading with as little or as much as they are comfortable with. This flexibility is further enhanced by the option to invest in fractional shares, enabling diversification across various markets and stocks without requiring substantial capital. Deposits can be made via bank transfer, with the platform supporting major banks in New Zealand and Australia. While Sharesies does not charge a deposit fee, users should be aware of any fees their bank may impose for transfers.

Markets & Instruments

Sharesies offers a focused selection of markets and instruments, primarily concentrating on stocks and indices. The platform provides access to major stock exchanges, including the New Zealand Stock Exchange (NZX), the Australian Securities Exchange (ASX), and US markets like the New York Stock Exchange (NYSE) and NASDAQ. This selection allows investors to diversify their portfolios across different geographical markets, albeit with a limited range of asset classes.

While Sharesies does not offer the extensive range of instruments seen with some larger international brokers, it does provide access to a variety of individual stocks and ETFs. Investors can choose from thousands of stocks and ETFs listed on the NZX, ASX, and US exchanges. This makes it an attractive option for those looking to invest in well-known companies and sector-specific ETFs without managing a multitude of different asset types.

A notable offering from Sharesies is the ability to purchase fractional shares starting from as little as $1. This feature allows investors to buy portions of high-priced stocks, making it accessible for those with limited capital to still invest in major companies like Apple or Amazon. Additionally, the platform’s focus on fractional shares and ETFs makes it a suitable choice for those interested in dollar-cost averaging and building diversified portfolios with smaller amounts of money.

Safety & Security

Sharesies places a strong emphasis on safety and security measures to protect their users' funds and personal information. The platform employs a fund segregation policy, ensuring that client funds are kept separate from the company’s operating funds. This policy is crucial for protecting investors' capital, as it ensures that clients' funds remain intact in the event of any financial difficulties faced by the company.

In terms of cybersecurity, Sharesies implements robust measures to safeguard data. This includes encryption technologies, regular security audits, and the use of multi-factor authentication to prevent unauthorized access to user accounts. Sharesies is regulated by the Australian Securities and Investments Commission (ASIC), which is known for its stringent regulatory standards, providing an additional layer of trust and reliability. However, it is important to note that Sharesies currently does not offer negative balance protection, so traders should manage their investments wisely to avoid potential losses exceeding their initial deposits.

Who Is Sharesies Best For?

Sharesies is tailored primarily for beginner and intermediate investors who are looking to enter the stock market with minimal barriers. The platform's user-friendly design and educational resources make it particularly appealing to novice traders and younger investors. The ability to invest in fractional shares from as low as $1 allows users to start investing without needing substantial initial capital, making it an ideal platform for those new to investing.

Additionally, Sharesies is well-suited for parents who wish to introduce their children to investing. The platform offers a simplified interface that is kid-friendly, allowing parents to set up accounts for their children and help them learn the basics of investing in a controlled environment. This feature is complemented by Sharesies’ educational content, which aims to demystify the investment process for younger audiences.

However, Sharesies might not be the best choice for advanced traders or those looking for a comprehensive suite of trading tools. The platform does not offer advanced features such as technical analysis tools, derivatives, or leveraged trading options, which might limit its appeal to more sophisticated investors. Moreover, the transaction fee on each trade could be a deterrent for high-frequency traders. Despite these limitations, Sharesies remains a compelling option for those seeking a straightforward, accessible entry into stock market investing.

• Ideal for beginner investors with limited capital.
• Suitable for parents teaching children about investing.
• Accessible to those interested in NZX, ASX, and US stocks and ETFs.
• Not ideal for advanced traders seeking comprehensive trading tools.
• May not suit high-frequency traders due to transaction fees.
• Limited appeal for those seeking leveraged or derivatives trading.