SelfWealth is the largest non-traditional broker in Australia. It provides low fee brokerage and a good range of features, so we take a look at how it compares with the competition? This is our SelfWealth Review.

SelfWealth Review Summary:

SelfWealth Rating: 4/5 SelfWealth has an extremely good product for what is one of the lowest fees in the brokerage market. SelfWealth is safe, holding funds under an individual’s HIN number and CHESS Sponsored. SelfWealth has a good community and allows benchmarking of an individual’s portfolio against other users.

SelfWealth also offers trading of US listed securities, however, there are typically some stocks missing in this list.

Positives
CHESS Sponsored
Low-Cost Trading from $9.50
Trading of US Shares
Easy Set-up
Large Community of Members

Neutral
FIRE Focused
Integrated Blogs
SelfWealth Portfolio
Benchmarking of Portfolio
Decent Mobile Application

Negatives
No Research Reports
Minimal Historical Data

SelfWealth Review

What is SelfWealth?

SelfWealth is an Australian online broker trusted by over 85,000 Australian Investors. SelfWealth has a flat-fee structure meaning that you will only ever pay $9.50 per trade this is applicable to both AU and US stocks. However, the brokerage fee for US stocks is in USD.

Is SelfWealth Safe?

SelfWealth boasts over $5.15 billion in Investor Assets with over $80m+ of assets traded on a daily basis. SelfWealth allows users to hold assets under their own individuals HIN in a CHESS Sponsored structure, we see this as greater security as compared with competitors to many other platforms which hold assets under a custodian model.

Your funds held in SelfWealth are safe, secure, and liquid cash is backed by the Government Guarantee. Due to the structure of the cash account, neither SelfWealth nor other third parties such as administrators would ever have access to your money, unless a specific direction is provided by you, the client.

For most people, we think CHESS-sponsored brokers are a better option. When buying shares through a CHESS Sponsored broker it means the ASX has a record of you owning those shares directly. When you join one of these brokers you get given a HIN (Holder Identification Number), and the shares are then attached to you, via that number. You can have multiple numbers at multiple online brokers.

There is a lot of misinformation around about CHESS-sponsored brokers with many trading platforms pretending to be CHESS sponsored. This makes it difficult to find the right platform.

SelfWealth Review, The Good:

Very Low Cost Online Brokerage

SelfWealth is one of Australia’s best low-cost online brokerage platforms. The flat-fee brokerage is a massive cost saver over the life of anybody’s share trading or investing career. This fee is nearly half the price of most traditional bank platforms. Over the investing timeframe, this saving in brokerage can amount to 1000’s of dollars saved.

Are There Any Hidden Fees?

There are no hidden fees from SelfWealth. To be sure we had a read through their financial services guide. Brokerage is the only fee SelfWealth charges for domestic shares, there are no accounting opening fees, annual fees, and no hidden fees.

For International shares, they charge 0.60% on the bid/ask spread for moving money between your AUD and USD accounts. There are no account fees on SelfWealth. No inactivity fees.

This is except in the circumstance where you might want to conduct an Off-Market Transfer, which would be an extremely rare circumstance for most individuals.

SelfWealth Mobile App

SelfWealth Australia has one of Australia’s best mobile trading applications. This app allows users to buy and sell shares directly from their phone. The app is user-friendly and responsive.

The app provides most of the same features that can be found in the mobile app, however, the community features seem harder to access from the mobile app.

Overall SelfWealth Australia has done a great job with the app, and in our opinion is Australia’s best.

Love SelfWealth? Own a slice in the Company

Furthermore, if you love SelfWealth Australia, which many of their users do. You can choose to directly own a share of the company under Ticker Code SWF:ASX

You can own SelfWealth. We’re publicly listed (ASX:SWF) and over one-third of the company is owned by SelfWealth members. Otherwise, the founder and local institutional investors have a stake in the business. We’re independent of the banks.

SelfWealth Review, The Bad:

No Research Reports:

SelfWealth Australia offers little in the way of fundamental or historical data except for the basics on the platform. This a common inconvenience for users on the web and mobile version, however, you can always utilize the research component from other online brokers such as NabTrade or Commsec to conduct the market research before buying the shares on the SelfWealth Australia platform.

Minimal Historical Data and Charting:

Similar to the above with the same solution of utilizing another platform to conduct research, SelfWealth has little in the way historical data or charting functionality on the platform. Other platforms typically integrate with iRess Viewpoint however there are no options for this on SelfWealth. SelfWealth would typically fall short of anyone who is day trading’s needs due to not having this functionality.

Prophet’s Take

SelfWealth Australia has produced an exceptional platform for the cost of one of the lowest fee online brokerages in Australia. The platform has an excellent community benchmarking tool to gauge your performance against others on the platform and incorporates one of the best mobile apps currently on offer.

The platform is slightly let down by the fact that they have limited charting or historical fundamental data. This product is likely not suitable for high volume day trading and is targeted more at the buy and hold investor.

Products Prophet Recommends

Check out our Head to Head review of the Best Share Trading Platforms Australia 2021 Best Share Trading Platforms Australia 2021 – Prophet Invest | Investing and Wealth (prophet-invest.com)

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