Selfwealth review: Cheap, fixed-fee share trading

Selfwealth background

Established in 2012, Selfwealth is an Australian owned and operated company which is most known for its flat fee structure on Australian, US and Hong Kong shares.

Selfwealth is trying to position itself in the market as more than just a share broker. It's also aiming to become a one-stop, online investment community. It offers a suite of online tools that helps to compare the performance of your investment portfolio with other investors of similar size.

What are the key features of Selfwealth share trading?

Through the Selfwealth share trading platform, traders are able to access a number of features that make their experience unique. Compare some of these key features against other share trading platforms and weigh up which aspects are most meaningful to you.

Cheap, flat-fee brokerage costs

Selfwealth is known for its flat-fee brokerage service. All Australian and US share market trades are just $9.50 per trade, regardless of trade size. This means that the type of trader you are or the size of your account won't change your trading costs. There are also no extra commissions. When it comes to trading costs, you always know where you stand with Selfwealth.

Access community insights and benchmarking tools with Selfwealth Premium

Members of Selfwealth Premium can set up a target portfolio using the strategies of top investors. Members can also watch or follow portfolios of other members in the Selfwealth community. This is done anonymously with no personal member details shown but instead monitors the performance of their portfolios. Members can watch as many other members as they want.

Free access to Selfwealth Premium for 90 days

When you create your free Selfwealth share trading account, you'll be able to try out all of the features offered with Selfwealth Premium for the first 90 days for free. If you then decide that you'd like to keep using Selfwealth Premium, you can continue for $29 per month.

Access free market data, insights and research

If you choose to trade Australian shares with Selfwealth, you'll find that stock performance and unit prices are updated every 20 minutes using ASX price data. Members can also access specific, detailed market-sensitive and general company information on individual shares via the stock analysis tool that is powered by Thomson Reuters.

Funds held by ANZ

All client funds are held in ANZ bank accounts. This means when you sign up for a trading account with Selfwealth, you'll also automatically receive a cash account with ANZ to settle your trades through. That means in the event of insolvency on the part of Selfwealth, your funds will be safe as they are part of a closed trust at ANZ.

CHESS-sponsored shares

Australian CHESS-sponsored shares are shares that are registered with a share broker like Selfwealth. They're given a Holder Identification Number (HIN) by the broker. On the other hand, Issuer Sponsored Shares are managed by the issuer of those shares via the issuer's share registry. All Australian shares bought through Selfwealth are CHESS-sponsored shares and are executed and settled by OpenMarkets. Shares are legally and beneficially owned by the investor and not held under custody.

No minimum account balance or Selfwealth trade volume requirements

There is no minimum account balance required when opening a Selfwealth share trading account, nor is there an ongoing balance requirement that needs to be maintained. You are also not required to place a certain number of trades each month to avoid an account inactivity fee. Just keep in mind that trades on the ASX must be more than $500 in value in order to go through.

Flexible order types

Investors and traders can place an order to buy shares at a particular price and allocate a "good until end date" setting to the order. This allows you to set and forget, as the trade will only be placed when the market hits your target buy price. This means there's no need to check the price daily for shares you want to buy and takes some of the stress away from trying to get filled at a price that is right for your particular strategy.

What markets can I trade with a Selfwealth share trading account?

Selfwealth provides complete access to the Australian Securities Exchange (ASX), offering investors and traders access to the following:

• Australian shares. These are shares traded on the ASX and are called "ordinary shares" by Selfwealth.
• US shares. Shares listed in the United States are available to trade on Selfwealth.
• Australian-listed property shares. Investors have access to property assets through Australian real estate investment trusts (A-REITs).
• Australian-listed investment company shares. LICs provide traders access to a range of underlying shares listed on the ASX in a single trade.
• Australian-listed debt securities. This is a fixed income security, allowing investors to receive a fixed return, usually at a specific rate of interest.
• Australian exchange traded funds. Similar to LICs, ETFs track the performance of a number of different stocks that investors can access via a single trade.

When it comes to trading international shares, Selfwealth says it will be supported sometime in the future. If this is a priority of yours, then use our guide to compare international share trading accounts.

What account types are available through Selfwealth share trading?

There are a number of account types to choose between. Take a look below and decide which is best suited to you and what you're trying to achieve from trading.

• Individual account
• Joint account
• Company account
• Trust account
• Self managed superannuation fund (SMSF) account

What types of customer support are available with a Selfwealth share trading account?

If you're looking for account or trading support from Selfwealth, then there are a number of avenues that you can take:

• Live chat support
• Email support
• Postal support

There is no phone support available, but there is a postal address listed on Selfwealth's "contact us" page – an interesting medium for an online share trading broker.

What are the fees I can expect when using a Selfwealth share trading account?

One of the key features spoken about at the top of this review is the fact that Selfwealth offers flat-fee, cheap brokerage costs of just $9.50 per trade, no matter the size.

• Brokerage fees. Pay $9.50 per trade for ASX stocks and US$9.50 for US stocks, with no size restrictions. This fee is the same for a trade worth $500 and a trade worth $50,000 on both Australian and US shares. There are no trading commissions or ongoing account fees that need to be monitored. If you trade Hong Kong shares you will pay a flat fee of $88 per share and a $50 FX transfer fee on $1,000.
• Selfwealth Premium. Access to the SelfWealth community, where you can mirror the strategies of top investors, is only available via a premium subscription. The first 90 days are free, then a $29 monthly fee applies to access this content. Alternatively, you can pay $240 for an annual subscription.

How do I pay for shares on a Selfwealth share trading account?

Paying for shares through a Selfwealth share trading account is simple. Just keep in mind that as per standard ASX processes, it takes up to 2 business days for funds to be settled and available to be withdrawn from your cash account.

• Cash account. When you sign up for a trading account with Selfwealth, you'll also automatically receive a cash account with ANZ in order to settle your trades. This account is accessible within your account and funds can be easily transferred in and out from there.
• Dividend payments. You must nominate an account for dividends to be paid into via the share registry after each new holding that you've purchased.

All funds are held in a Selfwealth trust account, within an ANZ bank account. In accordance with regulatory requirements, Selfwealth is not entitled to withdraw any amount from your cash balance in the trust account, except in accordance with a direction from you.

Selfwealth kids account

For those looking to set up an account for minors, Selfwealth offers children access to their own trading account.

An adult can open a share trading account and name a minor as the beneficiary. The account will function just like any other, but when the child turns 18, the shares held in the trustees name will be transferred from the minor to the now adult.

Remember that there are tax implications when it comes to investing for kids. To read more, click here.

How do I apply for a Selfwealth share trading account?

• Step 1. Begin your application online by providing your email address and clicking the activation link.
• Step 2. Provide your personal details including name, address and date of birth. You'll then need to select the account you want. You can sign up for an individual, joint, trust, company or SMSF account.
• Step 3. This process includes a Veda security check so 100 points of identification are required. Suitable forms of ID include your driver's licence, passport, photo ID card, bank statement and/or utility bill.
• Step 4. When your trading account is approved, your ANZ cash account is automatically created. You can now start buying shares.