Disclaimer: This is not financial advice. You are responsible for doing your own research before investing.
It can be difficult to know which broker is cheapest since the pricing structures are complex. This analysis attempts to figure out the total costs for a simple investor depositing a fixed amount of NZD every month, investing it using equal sized trades and then withdrawing everything after some number of years. Rate of return is assumed to be 7% annually for all investments. You can use a back-tester like Testfol.io to a more realistic idea of expected returns.
The effect of taxation is excluded from this analysis; Investing more then $50,000 (cost basis) into foreign funds will likely cause investors to fall under the foreign investment funds (FIF) income tax regime which typically results in a 1.5-2% drag on performance. After investing $49k it is a good idea to consider PIE funds such as those offered by Kernel Wealth, InvestNow, Simplicity etc. PIE funds will pay FIF taxes on behalf of their investors, often at a lower tax rate, and the individual can avoid having their direct investments taxed.
This analysis does not review the user experience of each broker. Brokers will differ in learning curve, service, quality of apps etc. Sharesies and Hatch tend to be easier to use while Tiger and IBKR tend to have more features and a steeper learning curve.
- Tiger Brokers
- IBKR aka Interactive Brokers
- Sharesies
- Hatch
- SuperHero
- ASB, Craigs IP and Jarden are omitted from the comparison due to their high fees.
To calculate this net returns were first cacluated using the FV() function in Google Sheets with monthly fees removed from the payment amount and then the fees for a lump sum withdrawal subtracted from the returns. Then this was compared with the returns of a hypothetical no-fee broker by calculating the future returns purely based on the amount to invest with no monthly fees or withdrawal costs.
Log Scale
When the number of trades per month is increased to 20 Tiger becomes less attractive since the four free trades are not making much of a difference. Interactive brokers on the will be the best option for traders with the tiered pricing option offering trades starting at 0.35USD plus third party fees.
| Fees USD | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Monthly investment or withdrawal (USD) | Sharesies | Sharesies $3 | Sharesies $7 | Sharesies $15 | ASB Securities | Craigs IP | Hatch | Stake | Superhero | Tiger Brokers | IBKR | IBKR recurring trade | |
| $5 | $0.12 | $1.93 | $4.47 | $9.54 | $91.90 | $81.06 | $15.03 | Below min | Below min | $2.00 | $3.75 | $0.35 | |
| $20 | $0.48 | $2.00 | $4.54 | $9.62 | $15.10 | $16.27 | $6.44 | $2.00 | $3.75 | $0.36 | |||
| $50 | $1.20 | $2.15 | $4.69 | $9.77 | $92.80 | $81.63 | $15.25 | $16.27 | $6.59 | $2.00 | $3.75 | $0.37 | |
| $100 | $2.40 | $2.40 | $4.94 | $10.02 | $93.80 | $82.25 | $15.50 | $16.27 | $6.84 | $2.00 | $3.75 | $0.38 | |
| $200 | $4.80 | $2.90 | $5.44 | $10.52 | $95.80 | $83.50 | $16.00 | $17.00 | $7.34 | $2.00 | $3.76 | $0.42 | |
| $500 | $12.00 | $4.40 | $6.94 | $12.02 | $101.80 | $87.25 | $17.50 | $20.00 | $8.84 | $2.00 | $3.76 | $0.51 | |
| $1,000 | $24.00 | $6.90 | $9.44 | $14.52 | $111.80 | $93.50 | $20.00 | $25.00 | $11.34 | $2.00 | $3.78 | $0.68 | |
| $2,000 | $35.00 | $18.80 | $14.44 | $19.52 | $25.00 | $35.00 | $16.34 | $2.00 | $3.81 | $1.01 | |||
| $5,000 | $50.00 | $46.90 | $38.24 | $34.52 | $111.80 | $93.50 | $40.00 | $65.00 | $31.34 | $12.50 | $3.89 | $1.99 | |
| $10,000 | $75.00 | $76.90 | $74.44 | $59.52 | $302.00 | $276.88 | $65.00 | $115.00 | $56.34 | $30.00 | $4.03 | $3.63 | |
| $15,000 | $100.00 | $101.90 | $99.44 | $84.52 | $90.00 | $165.00 | $81.34 | $47.50 | $4.17 | $5.27 | |||
| $25,000 | $150.00 | $151.90 | $154.44 | $149.52 | $755.00 | $692.19 | $140.00 | $265.00 | $131.34 | $82.50 | $4.45 | $8.55 | |
| $50,000 | $275.00 | $276.90 | $279.44 | $279.52 | $265.00 | $515.00 | $256.34 | $170.00 | $5.15 | $16.75 | |||
| $100,000 | $525.00 | $526.90 | $529.44 | $534.52 | $515.00 | $1,015.00 | $510.00 | $345.00 | $6.55 | $33.15 | |||
| $250,000 | $1,275.00 | $1,276.90 | $1,279.44 | $1,284.52 | $1,265.00 | $2,515.00 | $1,275.00 | $870.50 | $13.76 | $82.36 | |||
| Fees - Percentage | |||||||||||||
| Monthly investment or withdrawal (USD) | Sharesies | Sharesies $3 | Sharesies $7 | Sharesies $15 | ASB Securities | Craigs IP | Hatch | Stake | Superhero | Tiger Brokers | IBKR | IBKR recurring trade | |
| $5 | 2.40% | 38.57% | 89.33% | 190.84% | 1838.00% | 1621.20% | 300.50% | Below min | Below min | 40.00% | 75.01% | 7.04% | |
| $20 | 2.40% | 10.02% | 22.71% | 48.09% | 75.50% | 81.34% | 32.22% | 10.00% | 18.75% | 1.78% | |||
| $50 | 2.40% | 4.31% | 9.38% | 19.53% | 185.60% | 163.26% | 30.50% | 32.54% | 13.19% | 4.00% | 7.50% | 0.73% | |
| $100 | 2.40% | 2.40% | 4.94% | 10.02% | 93.80% | 82.25% | 15.50% | 16.27% | 6.84% | 2.00% | 3.75% | 0.38% | |
| $200 | 2.40% | 1.45% | 2.72% | 5.26% | 47.90% | 41.75% | 8.00% | 8.50% | 3.67% | 1.00% | 1.88% | 0.21% | |
| $500 | 2.40% | 0.88% | 1.39% | 2.40% | 20.36% | 17.45% | 3.50% | 4.00% | 1.77% | 0.40% | 0.75% | 0.10% | |
| $1,000 | 2.40% | 0.69% | 0.94% | 1.45% | 11.18% | 9.35% | 2.00% | 2.50% | 1.13% | 0.20% | 0.38% | 0.07% | |
| $2,000 | 1.75% | 0.94% | 0.72% | 0.98% | 1.25% | 1.75% | 0.82% | 0.10% | 0.19% | 0.05% | |||
| $5,000 | 1.00% | 0.94% | 0.76% | 0.69% | 2.24% | 1.87% | 0.80% | 1.30% | 0.63% | 0.25% | 0.08% | 0.04% | |
| $10,000 | 0.75% | 0.77% | 0.74% | 0.60% | 3.02% | 2.77% | 0.65% | 1.15% | 0.56% | 0.30% | 0.04% | 0.04% | |
| $15,000 | 0.67% | 0.68% | 0.66% | 0.56% | 0.60% | 1.10% | 0.54% | 0.32% | 0.03% | 0.04% | |||
| $25,000 | 0.60% | 0.61% | 0.62% | 0.60% | 3.02% | 2.77% | 0.56% | 1.06% | 0.53% | 0.33% | 0.02% | 0.03% | |
| $50,000 | 0.55% | 0.55% | 0.56% | 0.56% | 0.53% | 1.03% | 0.51% | 0.34% | 0.01% | 0.03% | |||
| $100,000 | 0.53% | 0.53% | 0.53% | 0.53% | 0.52% | 1.02% | 0.51% | 0.35% | 0.01% | 0.03% | |||
| $250,000 | 0.51% | 0.51% | 0.51% | 0.51% | 0.51% | 1.01% | 0.51% | 0.35% | 0.01% | 0.03% | |||
| Long term net returns | |||||||||||||
| Amount to invested monthly (USD), withdrawn lump sum on cheapest plan | Sharesies * | Sharesies $3 * | Sharesies $7 * | Sharesies $15 * | ASB Securities | Craigs IP | Hatch | Stake | Superhero | Tiger Brokers | IBKR | IBKR recurring trade | Benchmark (no fees) |
| $5 | $830.91 | $519.47 | $82.39 | -$791.76 | -$1,741.50 | $517.25 | $212.39 | $800.62 | $865.42 | ||||
| $20 | $3,352.21 | $3,089.84 | $2,652.77 | $1,778.61 | $828.87 | $624.33 | $2,328.13 | $3,109.62 | $2,808.59 | $3,396.04 | $3,461.70 | ||
| $50 | $8,394.79 | $8,230.59 | $7,793.51 | $6,919.36 | $5,969.62 | $5,764.95 | $7,468.88 | $8,283.99 | $8,000.98 | $8,586.88 | $8,654.24 | ||
| $100 | $16,794.09 | $16,793.50 | $16,356.43 | $15,485.09 | $14,537.54 | $14,332.65 | $16,036.79 | $16,907.94 | $16,654.98 | $17,238.28 | $17,308.48 | ||
| $200 | $33,592.71 | $33,919.33 | $33,482.26 | $32,608.11 | $31,673.37 | $31,342.77 | $33,172.62 | $34,155.84 | $33,962.98 | $34,541.08 | $34,616.96 | ||
| $500 | $84,008.54 | $85,316.82 | $84,879.74 | $84,005.59 | $83,080.85 | $82,234.90 | $84,577.95 | $85,897.24 | $85,886.97 | $86,449.49 | $86,542.40 | ||
| $1,000 | $168,051.60 | $170,995.96 | $170,558.89 | $169,684.73 | $168,760.00 | $167,055.11 | $170,248.48 | $172,132.42 | $172,425.50 | $172,962.05 | $173,084.81 | ||
| $2,000 | $338,376.57 | $341,165.94 | $341,917.17 | $341,043.02 | $340,118.28 | $336,695.53 | $341,589.55 | $344,602.77 | $345,501.99 | $345,986.62 | $346,169.61 | ||
| $5,000 | $852,451.43 | $852,984.72 | $854,476.50 | $855,117.88 | $854,193.14 | $845,616.79 | $855,612.74 | $860,202.90 | $864,731.47 | $865,060.33 | $865,424.04 | ||
| $10,000 | $1,709,242.86 | $1,708,915.06 | $1,709,339.08 | $1,711,909.31 | $1,710,984.57 | $1,693,818.89 | $1,712,318.07 | $1,719,536.45 | $1,730,113.95 | $1,730,183.18 | $1,730,848.07 | ||
| $15,000 | $2,566,034.30 | $2,565,706.49 | $2,566,130.51 | $2,568,700.75 | $2,567,776.01 | $2,542,020.99 | $2,569,023.39 | $2,578,973.53 | $2,595,496.42 | $2,595,306.04 | $2,596,272.11 | ||
| $25,000 | $4,279,617.16 | $4,279,289.35 | $4,278,852.28 | $4,279,700.32 | $4,281,358.87 | $4,238,425.18 | $4,282,434.03 | $4,297,709.62 | $4,326,261.37 | $4,325,551.74 | $4,327,120.19 | ||
| Long term - total fees | |||||||||||||
| Amount to invested monthly (USD), withdrawn lump sum on cheapest plan | Sharesies * | Sharesies $3 * | Sharesies $7 * | Sharesies $15 * | ASB Securities | Craigs IP | Hatch | Stake | Superhero | Tiger Brokers | IBKR | IBKR recurring trade | |
| $5 | $34.51 | $345.96 | $783.03 | $1,657.18 | $2,606.92 | $865.42 | $865.42 | $348.17 | $653.04 | $64.81 | |||
| $20 | $109.49 | $371.85 | $808.93 | $1,683.08 | $2,632.82 | $2,837.37 | $1,133.56 | $352.07 | $653.11 | $65.66 | |||
| $50 | $259.45 | $423.65 | $860.73 | $1,734.88 | $2,684.62 | $2,889.29 | $1,185.36 | $370.25 | $653.26 | $67.36 | |||
| $100 | $514.39 | $514.98 | $952.05 | $1,823.39 | $2,770.94 | $2,975.83 | $1,271.69 | $400.54 | $653.50 | $70.20 | |||
| $200 | $1,024.25 | $697.63 | $1,134.70 | $2,008.86 | $2,943.59 | $3,274.19 | $1,444.34 | $461.12 | $653.98 | $75.88 | |||
| $500 | $2,533.86 | $1,225.58 | $1,662.66 | $2,536.81 | $3,461.55 | $4,307.50 | $1,964.45 | $645.17 | $655.44 | $92.91 | |||
| $1,000 | $5,033.21 | $2,088.85 | $2,525.92 | $3,400.07 | $4,324.81 | $6,029.70 | $2,836.32 | $952.39 | $659.31 | $122.76 | |||
| $2,000 | $7,793.04 | $5,003.68 | $4,252.44 | $5,126.59 | $6,051.33 | $9,474.08 | $4,580.07 | $1,566.84 | $667.62 | $183.00 | |||
| $5,000 | $12,972.61 | $12,439.32 | $10,947.54 | $10,306.16 | $11,230.90 | $19,807.25 | $9,811.29 | $5,221.13 | $692.56 | $363.71 | |||
| $10,000 | $21,605.21 | $21,933.02 | $21,509.00 | $18,938.76 | $19,863.50 | $37,029.19 | $18,530.01 | $11,311.62 | $734.12 | $664.89 | |||
| $15,000 | $30,237.82 | $30,565.62 | $30,141.60 | $27,571.37 | $28,496.11 | $54,251.12 | $27,248.72 | $17,298.59 | $775.69 | $966.08 | |||
| $25,000 | $47,503.03 | $47,830.83 | $48,267.91 | $47,419.87 | $45,761.31 | $88,695.00 | $44,686.15 | $29,410.57 | $858.81 | $1,568.45 |
This guide took a long time to put together. If you'd like to support me and get a bonus for yourself feel free to use one of the links below.
| Tiger | https://www.tigersecurities.com/signup?invite=QN2UBC | 50 NZD |
| IBKR | https://www.interactivebrokers.com/referral/benjamin240 | Up to $1000 USD - 1% of first year deposits as free stock |
| Sharesies | https://sharesies.com/r/7R8PRT | 5 NZD |
| Hatch | https://app.hatchinvest.nz/share/xu24tfs5 | 10 NZD |