Stake App Review

Content Producer · 25 August 2021
To invest in the biggest companies in the world, it’s no surprise you’ll need to look further afield than Australia and instead turn your attention to the US. Stake is one share trading platform on the market that offers an easy way to gain access to Wall Street where you’ll find the likes of Apple, Google and Facebook.

What is Stake?

Stake is an online share trading platform that aims to make it easy for Australians to trade US shares. Prior to Stake’s arrival on the scene, in order to invest in the US you would likely face excessive fees and mountains of paperwork, but with the Stake app you can open an account relatively easily and with minimal fees. At the time of writing, Stake has 330,000 users from all over Australia.

How does investing with Stake work?

To invest with Stake you’ll need to open an account, which requires a few forms of identification, including a drivers license or passport. Once you’ve transferred money into your Stake account you’ll have access to over 6,000 US stocks and ETFs. Stake also has a premium account called Stake Black which gives you access to additional products, features, data and information.

How much does it cost to invest with Stake?

There are no trading fees or FX trading fees with Stake, however, you will have to pay an FX fee on deposits and withdrawals which is 0.7%. For the premium account, Stake Black, there is an account fee of $9 per month. There may be other fees you’ll encounter, so before opening an account you should read through the terms and conditions and have a clear understanding of the fees involved.

Who can invest with Stake?

To open a Stake brokerage account in your name, you’ll need to:

  • be 18 years or older
  • have a valid address in Australia
  • be an Australian resident, citizen or have a valid visa (student or work visa etc)
  • have any Australian government ID (license or passport) or a bank account in your name.

Why invest overseas?

Aside from the fact that US and international markets, more generally, have had a strong year (making record gains in some cases), there are many upsides to investing overseas. First and foremost the exposure to foreign markets will help diversify your investment portfolio. By investing in a spread of different countries, when some regions are experiencing a downturn, others may be seeing growth, thus potentially safeguarding your investment from additional risk.

However, there are downsides too. When investing overseas you’ll have to consider the currency exchange rate. While you could make a profit selling stocks you could easily find your returns are eroded when you exchange funds back to Australian dollars. It is also worth being across foreign exchange rates It’s also worth considering when investing in foreign markets that there are different rules and regulations to follow. If you are ever in doubt, you should seek the help of a professional financial advisor.

Cover image: vichie81/

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Marissa is the Content Producer for the Wealth team at Canstar, and specialises in investment content. Her previous experience has seen her create content for wide range of industries from travel to the legal sector. Follow Marissa on LinkedIn, and Canstar Investor Hub on Facebook.

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