Australian’s have been buying and selling US listed stocks on the popular Stake platform since 2017, saving investors in US brokerage. However, the company is now looking to shake up the ASX with a low cost brokerage platform down-under. So we take a look at the existing offering, this is the Ultimate Stake Review.

If your looking for up to $150 of free stock with Stake see below:

STAKE Review Summary:

Stake Rating: 4/5 The Stake Trading App offers an excellent Mobile and Desktop UI. The App is advertised as 0$ brokerage for US shares however, Stake instead charge an FX (Forex Exchange Fee) of 70bps (Basis Points) on Deposit and Withdrawal of funds. The App also offer’s additional features with Stake Black such as detailed company financials and data, buy and sell ratings and Early Access to Funds.

Currently Stake Only offers trading of US listed securities however, has recently updated their website flagging their intentions of bringing an offering to the ASX.

Stake Review Positives
Excellent UI for Mobile and Desktop
Brokerage Fee Share Trading
Trading of US Shares
Easy Set-up
Stake Black

Prophets Trusted Affiliate Partner

Provides access to Inverse and Leveraged ETF’s

Stake Review Neutral
No ASX Trading Yet..
Pricing Model Somewhat Confusing
Easy Withdrawal of Funds

Stake Review Negatives
No Access to Advanced Trading Features

Currently only allows US markets, however looking to add ASX shortly

Does Not Currently offer options trading

SelfWealth Review
We Give the Existing Stake US App 4/5 Stars

What Is STAKE?

STAKE is an Australian Broker allowing over 330,000 current users to trade for $0 brokerage on the US markets. Stake currently lists over 4,500 US stocks and ETF’s for trading on their platform. Stake offer’s a sign up bonus for new users where they gift a free stock up to US$150 when users fund a new account within 24hours.

STAKE Coming to the ASX?

According to the company website STAKE is looking to update the current experience for investors on the ASX and enrich the investing experience by doing the ASX the Stake way. Details on the website are scarce at the moment, however, they are looking to provide investors with more control and greater transparency over their trades. We expect Stake will bring a decent product to the market with a more competitive pricing model and UX than existing offerings.

It will be interesting to see how competitive their pricing model for ASX shares will compare with ASX:SWF SelfWealth. Check out our review on SelfWealth, which we believe has ASX current best platform here.

STAKE Review, The GOOD:

Best In Class UI & UX on Mobile and Desktop

STAKE provides in our opinion the best UI and UX of any Mobile or Desktop online brokerage platform. Information is clear and minimal, however, you can easily jump into more detail if you need. The news feed is also typically up to date and lists worthwhile articles.

Example of a Basic Earnings Overview on the Stake Platform

The UI which in our opinion is the best of any online brokerage is the primary driver for Prophet using Stake for their US listed buying and selling.

Image result for stake day trade gif
Stake Trading Interface Mobile

The charting functionality is a little lacking, however for buy and hold investor’s this is not of too much of a concern. However, for anyone looking at high frequency trading this interface would not be suitable.

Reporting and Compliance

Stake automatically compiles reports at the end of each month called Account Statements. These statements show the overall change in the position in the month, making it easy to track your performance MoM.

US Tax Compliance Made Easy. The sign up form for Stake is all digital and includes automatic submission of the US tax form required to avoid paying a higher rate of US tax on trading profits.

Stake Black

Stake Black offer’s users access to instant buying power on sell trades. This is useful for investors who don’t necessarily want to wait the typical T+2 settlement of funds under the free platform. The platform also has a few good features in regards to day trading, such as notifications of Pattern Day Trading Protection.

The Pattern Day Trade protection is useful as Under US rules, your account may be restricted if you make more than 3 day trades in a rolling 5 day period. This is helpful in helping to avoid account restrictions for day trading.

Fractional Shares – Buy part of a Stock

Stake allows purchasing of fractional shares, which are just smaller chunks of the same share, this is calculated based on the proportion of what you invested over the price you brought the shares. This is useful for stocks like Berkshire Hathaway whom currently trade at over USD$400,000 a share, meaning that you can now own a fraction of BRB shares without having USD$400k to buy in.

Ownership of the fractional shares are held in your name with stakes broker and kept in custody by Velox Clearing LLC & Citibank (the custodian), so full beneficial interest (things like dividends etc) are assigned to you. 

As the US market operates on a books and records basis, shares are grouped at the bank level, who then report the holdings to the exchange. The fractions are then split up between the broker’s clients (you and others on Stake etc). 

The best part of all this is that you will still receive a dividend of a share in the proportion of your holdings.

STAKE Review, The BAD:

No Access to Advanced Trading Features

Stake lacks many of the advanced charting tool’s to make this a viable platform for any short term, high frequency trader. The charting options are minimal.

If you are looking to trade at a faster rate, Stake however offer Stake Blake, for a fee of ~$USD9 a month. Allowing you to trade on unsettled funds.

Currently only allows US markets, however looking to add ASX shortly

One of the downfalls of stake is that it doesn’t currently offer options trading, nor trading of ASX listed securities in Australia. However, the company is looking to bring the ASX to Stake in the coming months.

Is Stake Safe?

Stake holds your assets in custody account with CitiBank one of the worlds largest and most established financial institutions. US shares are typically held in the custodian model, which is similar to how Superhero Aus. operate, where shares are not held in your name but are instead held in custody on your behalf. This means that your name would never enter the share registry and you rely on the custodian to secure the assets.

Stake’s US broker is DriveWealth. Meaning that if Stake itself were to collapse, DriveWealth and CitiBank will be able to grant access to all the customers assets without the use of Stake. Think of Stake as the UI, however DriveWealth, OFX and CitiBank do most of the heavy lifting here.

Prophets Trusted Affiliate Partner

Is Stake Safe? Due to shares being held in a custody account with CitiBank, Yes, the Stake is Safe.

Stake Fees

Stake Charge $0 per Trade and $0 FX Fee’s per trade. This is inclusive for Market Orders, Limit Orders, Stop Loss Orders and Fractional Shares. However, Stake make money through Stake Black subscription and by charging a spread of 70BPS on deposit and withdrawal of funds from the platform.

There are also other fee’s associated with the automatic completion of the W-8BEN form and a 0.5% for express deposits.

Prophets Take

Stake offer’s a compelling product for Australians looking to trade the US markets, with the best UI in the online brokerage game. The Zero fee trading is balanced by a FX fee when depositing and withdrawing funds, which makes tracking actual gains slightly harder.

Stake holds shares under a custody account meaning these are secured by DriveWealth and CitiBank. Meaning that if something was to happen to Stake you will still be able to recover your shares.

Stake black offer’s little more than trading of unsettled funds, however also offer’s easy access to company financials, which we are not sure is worth the fee as there are other options out there.

Prophets Trusted Affiliate Partner

The platform does not yet offer trading on the ASX, although they are actively looking to add this feature in the coming months.

However, the ease of use and excellent UI make stake our choice for our long term buying and selling of US listed equities.

Learn How We Analyze A Company:

The Ultimate Stock DD Checklist For Beginners

Want a List of CHESS Sponsored Brokers: Here

Leave a Reply

Your email address will not be published. Required fields are marked *

Introducing our latest and one of our largest portfolio holdings Askari Metals (AS2). 

The Company has 5 prospective copper-gold projects in tier 1 mining jurisdictions in nearology to mining giants.

You May Also Like

Afterpay’s (APT.ASX) Biggest Stock Price Catalyst Yet.

Afterpay has its eyes set on the USA. The Revolutionary Buy-Now Pay-later…

Should I Buy Shares in A2 Milk Latest Update? (A2M.ASX)

Should I Buy Shares in A2 Milk Latest Update? (A2M.ASX, ATM.NZX). Shares in ASX listed company A2M have been crushed of recently, so we take a look and answer the question. A2M is dual listed on both the Australian and New-Zealand Stock Exchanges.