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Best Brokers to Trade Shares NZ (Hatch Invest, ASB Securities)

hey guys tom here from the investing

with tom youtube channel welcome back to

the channel if you enjoyed today's video

be sure to hit like and subscribe as

well so that you can watch future videos

also so today what we're going to be

talking about is we're going to dive

into some questions I've had fairly

frequently from some of my New Zealand

viewers and that is around what is the

best broker to you so if you're just

getting started and investing you know

should you go with one of the banks

should you go with one of the new

discounts sort of online brokers what's

the bit what's got the best fees what's

the easiest to use all those kinds of

questions so I've got a bit of personal

experience using a couple of different

brokers now so I'm going to dive into

that and run you through the different

options and my opinion on what I have

used so far so let's get into it so when

it comes to buying shares from New

Zealand and picking out a broker there's

really a couple of different categories

that you've got a kind of stick brokers

and - in my opinion and that is all

revolving around what country and what

exchange you want to buy shares on so

for buying shares from New Zealand I'm

assuming that there's probably a few

different exchanges you probably want to

be buying shares on the first one is

obviously the NZXT the New Zealand

exchange I'm guessing if you're based in

New Zealand you want to be buying new

zealand companies and i think that's

great so that's going to be the first

sort of broker category that we kind of

look and so most of the brokers in that

category also offer a essex trading or

the Australian Stock Exchange which I'm

guessing is probably second or third on

your list and the other one that I'm

guessing you also probably want to be

looking fairly closely at is the US

markets so companies listed on the

NASDAQ and in the S&P 500 and that sort

of thing and the companies or the

brokers that work in the US are going to

be in quite a different category here so

although some of your New Zealand and

Australian brokers will offer

international share trading outside of

those two countries the fees often ramp

up quite dramatically and that is one of

the reasons that I actually now work

with a couple of different brokers so I

work with one broker for sort of New

Zealand and Australia and I work with

one just for the US alone so let's get

into there let

go through some of the different fees

and some of the kind of user interface

and how you actually go about buying

shares with these different brokers and

I'll get into my opinions on what I

think's best and what's easiest to use

and all that kind of stuff so let's get

into it

so first off let's talk about buying

shares in New Zealand and Australia and

I'm gonna talk specifically about buying

shares and individual companies so one

of the companies that's become quite

popular recently as she Aziz they have

very low fees and they offer very small

amounts of money you can put them very

small amounts of money and invest it but

predominantly that is just investing in

ETFs and index funds at least at this

point I know they have been putting out

some feelers for kind of what people

would want to do in terms of investing

in individual companies but for now as

far as I as far as I'm aware at least

it's just ETFs and index funds so we're

not going to talk too much about

sharesies today we're going to talk

about the individual kind of company

brokers and the first one I'm going to

talk about as ASB securities so ASB

securities is the first broker that I

ever started with and it's the one I'm

still worth in terms of New Zealand and

Australian exchanges so just to run you

through the fees when I first started

basically all brokerage under $10,000

was basically 30 New Zealand Dollars a

trade over and above $10,000 is 0.3% so

still at that $10,000 threshold you're

talking $30.00 per transaction but over

and above that you'll start to continue

to pay sort of 0.3% from there so a

couple of things that come along with

that they've recently changed to offer

$15 brokerage if the trade is under

$1,000 so for people really just getting

started that's a big plus and it means

that in terms of trying to get those

fees down as a percentage of the amount

of money you're investing there's a bit

of incentive there to try and get you

know up close to the $10,000 mark and

get those bigger trades kind of coming

through so what you don't want to do

obviously is invest a whole lot of money

and have a big percentage of it go to

fees so if you invest say $1,000 and 5%

I've got as

and 5% of that is going to fees that's

50 bucks and then when you sell you've

also got 5% going to fees so you're down

a hundred dollars or about 10% before

you even get started so keeping fees low

is very important and the other thing

that comes along with brokers in general

is you obviously want something secure

you're putting your hard-earned money

and to enter these shares into these

businesses so you don't want something

too dodgy you want to have something

reliable and safe and something like ASB

you can literally walk into a branch if

you've got any burning questions you can

also call an email and all that kind of

stuff so ASB is the one that I continue

to use for New Zealand in Australia if

she is ezel someone comes on comes along

with a lot lower brokerage costs even

than that I'm a kind of flip across but

ASB is the broker that I'm working with

at the moment so that's a SP in terms of

fees just in regards to the actual user

interface and what it's like to sort of

go through the process of putting in an

order to buy or sell shears and New

Zealand in Australia at least it's

pretty straightforward so essentially

you go on to the ASB website you enter

the security that you want to buy so if

you want to buy shears and say that a 2

mil company then you'd put the check out

ATM and pick the New Zealand Exchange

you then put in the amount of shares you

want to buy the price you're willing to

pay and essentially go through the order

from there and you can do this all

online and they've got email

notifications for when that trade

actually goes through and processes and

things as well so that's really easy one

of the things that I did find tricky in

terms of ASB was when it got to

international orders so that's what

we'll talk about next let's talk about

some international brokers and some

different options you've kind of got

there so in terms of buying and selling

shares outside of New Zealand on

Australia I'm assuming that most of the

time you're probably going to be looking

at the US they have one of the largest

stock markets in the world some of the

best-known companies in the world and

it's a place that has performed very

well in the past of in terms of the

returns back to investors so that is the

next exchange we're going to talk about

and just sticking with ASB first of all

I have actually placed a u.s. sort of

trade with a

speed before and there are a couple of

things that I really really did not like

with that kind of service through ASB

and it's a reason why I have switched

over to a new company actually called

hatch invest which you may or may not be

familiar with and people that may have

had different experiences to me this is

just sort of my opinion but with ASB the

first thing that you'll notice when you

go to place an international order is

well there's three things really there's

three things I don't like so the first

one as there is no online brokerage

service for buying shares in the US the

first thing you have to do is you

actually have to get on the phone and

call the broker and that leads to sort

of my second issue which as it really

ramps up the fees so when you place a

trade online for a New Zealand and

Australia are talking fifteen to thirty

dollars depending on the amount of money

you invest maybe slightly more if you

put in sort of a big trade north of ten

thousand dollars at once but that's

typically the kind of range of studied

in now when you go to invest in the

states and you put in a phone order

you're looking at ninety nine zero US

dollars in other words around one

hundred and thirty s New Zealand dollars

just to put a trade through so to have

that make sense in terms of not taking

up a big percentage of the total capital

you're trying to invest you have to have

a reasonable amount of money to make

that work it's not really set up all

that well for small investors and you've

got to get on the phone and you've got

to pay big fees the third thing that

comes along with that is I found that

the extract exchange rate wasn't great

it wasn't anywhere near as good as hatch

invest which we're going to talk about a

little bit from personal experience I

transferred across around 7,000 New

Zealand dollars into a US currency

through ASB and you know comparing that

against the exchange rate I was looking

at online and the exchange rate I got

through ASB I

they basically clip the ticket at

roughly around $250 I was kind of worse

off from making that exchange so there

are a few negatives there and that's

kind of my personal experience with ASB

securities in terms of their

international trading again just

my opinion people may have had great

experiences but and that's kind of where

I'm studying with ASB so that's some

negatives on the sort of international

side with them on the US side at least I

still continue to use them for New

Zealand and Australia I've found them

really really good for that so without

further ado let's get into hatch invest

and talk about my new broker with the US

okay so hedge invest is a relatively new

company they are backed by Kiwi wealth

which evolved involved in our sort of

superannuation KiwiSaver kind of schemes

here in New Zealand and they have a

couple of big benefits for smaller kind

of individual investors wanting to get

into the US market so they are a

relatively new online platform you can

make all of your orders online you don't

have to get on the phone like you do

with other brokers this is also not a

sponsored video by hatch or anything

like that just in case yeah thinking

that just thought I'd throw that in

there but essentially you can make your

orders online the exchange rate is a lot

lower so well under 1% of basically

that's how much they clip in the ticket

when you convert New Zealand dollars to

US dollars so there's a much more

beneficial exchange rate for investors

and the fees are also very very low so

with ASB like we were talking before

you're looking at 90 US dollars a trade

where as worth Hetch you're looking at a

maximum of about eight US dollars per

trade unless you're buying quite large

number of shares so from anywhere

between one share and 400 shares and a

company you're looking at eight US

dollars per trade so if you even wanted

to invest four hundred and four hundred

shares of Amazon and you're investing

you know six or eight hundred thousand

dollars the u.s. u.s. dollars you're

still looking at eight US dollars per

trade so that's ridiculously low

exchange rate that is fantastic you know

less than 10 percent of what we were

working with with ASB and plus we have

more money to actually funnel into the

markets because of their better exchange

rate so a couple of big pluses there for

individual investors and that is

fantastic one of the other things that

we also get is our tax can be processed

through hatch for 50 cents a year and

another big big bonus that's pretty hard

to beat and the other thing that you get

is you also have any dividends and any

cash sitting in that hatch account

automatically invested in a money market

fund and if you don't know what a money

market fund is essentially it's a type

of fund where you will earn savings

accounts type kind of levels of returns

so it's basically a bit of a placeholder

for any cash that you've got setting in

that account and one of the things I

actually didn't mention with the ASB

securities brokerage before is I don't

actually bank have my sort of regular

savings and checking accounts and things

like that with ASB I bank with Westpac

typically so anytime I wanted to invest

through ASB securities I would transfer

that money across but just because the

the typical securities so the brokerage

accounts don't actually have any

interest rate on them so if you have

cash sitting there it's not generating

any sort of return at all

I'm sure it's easy enough to probably

open up a high interest savings account

with with ASB as well but it's just I

think I never did so I had that sitting

in ASB so that that's an in West back

and I transfer it across that was a bit

of a pain when I was working with

international currencies because if I

got paid an Australian dividend or a

u.s. dividend for example if I wanted to

earn interest on that cash while it was

just sitting there and not invested I'd

again have to transfer it across to New

Zealand Dollars paying an exchange rate

fee again and then back into my west

bank account so there are a few kind of

extra steps that I have to take there

with Hach I get paid a dividend to go

straight into that US money market

account it always stays in US Dollars

and I'm not having to pay fees to

constantly go back and forth between New

Zealand and u.s. currencies so that is a

big big plus for me and something I

really like and that's the reason I'm

using hatch invest for my international

trading so and they have it that's my

sort of background in my kind of opinion

on the best brokers to use for New

Zealand investors I hope you enjoyed the

video and if you do have any questions

or comments definitely drop them down

below I hope you enjoyed it if you did

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to this Cheers have a great day