Stake review: A trading platform for AU and US stocks

Congratulations, Stake!

Stake received the following awards in the 2024 Product Awards:

• 'Share Trading Platform – Australian Equities' - Highly Commended

Full list of 2024 winners

What can I trade with Stake?

You can access more than 9,500 US stocks and ETFs plus all 2,500+ ASX listed securities via Stake.

But Stake is limited in its options. It won't let you buy shares outside of the US and AU, and it doesn't have access to derivatives, such as CFDs, or options.

Features of Stake’s basic (free) account

Access some of the world’s biggest brands

By offering access to the US markets, Stake offers Aussies access to some of the biggest brands in the world including the likes of Apple, Tesla, Facebook and Google.

$0 brokerage

Stake has a claim as one of the cheapest CHESS-sponsored brokers and will even remove its brokerage fees, on the assumption your bring across a few friends.

CHESS is the registration system used by the Australian Securities Exchange (ASX) to register stock ownership. Think of it as an insurance policy as the shares are in your name.

Stake will reduce your ASX brokerage fees by $1 (or give you a free stock) for every successful referral you make to the Stake platform.

This discount period is for 12 months. This means if you refer 3 people to Stake at the same time, you can get $0 brokerage fees on ASX CHESS-sponsored shares for 12 months. Plus you can keep referring more friends to bank rewards.

Fractional investing

On Stake Wall St, instead of buying individual shares, you can invest smaller dollar amounts (minimum US$10). For example, if 1 Apple share costs US$164, you have the option of investing just US$100 if you choose. This means you can buy part of an Apple share.

User-friendly platform

Stake's platform is easy to pick up, regardless of your trading experience. It's user-friendly enough that you can familiarise yourself with the features in just a few minutes and start trading right away.

Advanced filtering options

Users can apply a range of advanced filters when looking for stocks to trade. For example, you can filter by stocks that are trending such as most up, most down, most traded or most watched. You can also filter by a range of categories including food, travel and technology or even the size of the company.

Discover related stocks

When you select a stock to look at, the platform also suggests a range of related stocks based on what others are trading. This is a helpful tool to discover some lesser-known stocks.

News and analysis

Access the latest news and analysis for each individual stock from various sources across the internet. Plus, access Stake’s own blog and stock commentary too.

Charts and financial data

Through Stake Black (which you have to pay for), you have the option of switching between regular stock price charts and candlestick charts to see how a stock has performed over the past day, week, month, year or 3 years.

Advanced order types

You can choose to buy or sell at market price as well as place a limit or stop order. Trade settlement takes the standard T+2 for US stocks – 2 days on top of the day you made the trade – and you can easily cancel any orders before they've been placed, with no additional charge.

US tax compliant

When you trade US shares as a non-US citizen, you must fill out the W8-Ben US tax form to avoid paying 30% tax instead of 15% on your profits to the US government. While this can take several weeks and involves lots of paperwork with some other brokers, Stake streamlines the process by automatically submitting the form for you when you sign up.

Stake Black

For those looking for more advanced features, they can gain access to them through Stake Black.

Stake Black will give you access to features such as instant buying power, buy-sell ratings, price targets, OTC stocks and full company financials.

But you will have to pay for the service. If you choose a monthly subscription, it is US$9 a month or you can pay US$90 for a full year, equivalent to US$7.50 per month.

What fees does Stake charge?

Stake does not charge any brokerage fees when you buy and sell US stocks. Instead, Stake makes money on the currency exchange when you fund your account or withdraw money from your account.

Before you can trade with Stake, you'll need to add funds to your account. Stake charges approximately US$0.70 for every AUD$100 you transfer from Australian dollars into US dollars and vice versa. However, as Stake points out on its website, these foreign currency transfer fees are applied by other brokers, including many major banks, to international trades. With other brokers, this fee may be applied each time you trade, whereas with Stake, you're only charged the fee when you transfer funds.

There are some other charges to be aware of. Below is the full list:

List of fees

• 70 BPS on deposits and withdrawals only (~US$0.70 for every AUD$100 exchanged), minimum US$2. Add 0.5% for express (same-day) deposits.
• One-time W8-Ben completion fee. This is automatically completed by Stake on your feed trade. It is a once-off fee of US$5 and reduces your withholding tax on any income (such as dividends) from 30% to 15%.
• $3 brokerage on ASX-listed securities.

Is Stake safe for beginners?

Stake's limited options actually make the app safer for beginners.

Given the broker does not offer riskier asset choices such as CFDs, investors avoid the temptation of trading in more speculative assets.

Also, Stake is considered to be among the safer options due to it being regulated by the Australian Securities & Investments Commission (ASIC) and the UK's Financial Conduct Authority (FCA).

Not only is it heavily regulated, but client assets are also protected up to $500,000 under the Securities Investment Protection Corporation's insurance.

Who should use Stake?

Despite its limitations, Stake should appeal to the majority of investors, especially those at the beginning of their investing journey. This is due to the ease of access to the Australian and US markets.

Stake is among the cheapest apps out there with a $3 brokerage model for US stocks, a $3 fee for ASX stocks and no ongoing monthly fees for standard accounts.

As a comparison, Australia's largest broker CommSec charges from $5 per trade for ASX shares and US$19.95 for US stocks.

Where Stake becomes less appropriate for investors is when they are after highly sophisticated options or want research included with their broker. However, it's worth noting investors do have the option of paying for "Stake Black".

How to get started with Stake

You can create an account with Stake online in minutes and have your account funded and ready to go that same day.

Click "Get started" on Stake’s site and follow the prompts to enter your personal details including name, residential address and contact details. Create an account by selecting a username and creating a unique password. You’ll need to verify your ID throughout the process, so make sure you have your driver's licence handy.