Stake review 2022: Buying, trading, and selling stocks in the US has never been more accessible in the UK. Thanks to trading applications such as Stake, which have appeared on app stores worldwide. Stake enables you to trade the Australian Securities Exchange and the American Stock Exchange. Thus, allowing you to access both US and Australian stock markets while paying the lowest in terms of broker fees.
Because of the extensive regulations and taxes that apply to foreign investors, it might be difficult for them to invest in the US market outside of the US. As a result, investing may be tricky. But Thanks to Stake App, which offers the lowest possible fees and best trading options.
If you’re looking to invest in US shares but don’t know how to go about it, don’t worry – we’ve got you covered. This article will show you how to buy US shares in the UK, including finding a broker and the paperwork you’ll need.
How to Buy US Shares in the UK?
Buying US shares in the UK is a simple process, but there are a few things you need to know before getting started. For example, you’ll need to open a brokerage account and have your documents in order. But don’t worry – we’ll walk you through the entire process. You’ll need to find a broker to buy US shares in the UK that offers this service. Not all brokers do, so shopping around and comparing your options is essential. Once you’ve found a broker that meets your needs, you’ll need to open an account with them.
The next step is to fund your account. You can invest by transferring money from your bank account or using a credit card. Once your account is funded, you’ll be able to start buying and selling US shares.
When ready to buy, place an order with your broker. You’ll need to type in the ticker symbol for the stock, as well as the number of equity you want to buy. Once your order is placed, it will be executed by your broker, and you’ll own the shares. It’s important to remember that you may have to pay taxes on your profits when you sell your shares. Remember the tax factor before investing, as it is crucial to enjoying profitable investments.
Stake Review 2022
Introduction to Stake
The Stake is an app that allows investors in Australia and other countries to trade equities on US exchanges without having to open an account with a US broker. Stake users have access to over 3,500 distinct stocks, and Exchange Traded Funds (ETFs) when trading, making investments in equities that match their preferences.
You may also make substantial savings on brokerage fees by trading Australian equities and ETFs regardless of the amount you invest in them.
How does Stake work?
Let’s look at what the app is designed to accomplish and how it works in practice. You can enjoy access to both an app and a standard desktop interface.
TrueLayer’s bank transfer deposit method is exceptionally user-friendly. It allows you to link your account with Stake securely using open banking. That means you may make a deposit simply by entering some information. The minimum threshold is £50 for deposits, which is quite generous given that many stock trading apps demand more money upfront. Despite this, for the most part, this is still a low barrier to entry for most people.
Furthermore, it’s a good idea to deposit money into your account with a good amount upfront so that you don’t have to pay FX costs again and again on every small deposit or withdrawal.
How Much Stake Costs?
The Stake app is an excellent place to start investing. You may trade commission-free in the US market, which is a significant advantage. Unlike competitors, you don’t have to pay commissions when executing a US stock trade through their app. It is particularly beneficial for people looking for free stock access or those just getting started with investment. In addition, there are no account maintenance or holding expenses with Stake.
In Australia, Stake charges the lowest fee for CHESS-sponsored ASX trades in the country, flat at just $3 per transaction – regardless of how big or tiny your purchase is. Although the basic version is free, there is also a paid version. Stake Black is a premium app that requires a monthly subscription of $9 to enjoy additional functions. You may subscribe for USD $90 (USD $7.50 per month) for a year.
There is one more condition for USD trading accounts. You must top up your account with US dollars; there is an option to transfer any US dollars into it. On the other side, presently, Stake charges a currency conversion fee of 0.7 percent, with a minimum of $2 as the lowest charge. Moreover, other rivals now charge significantly higher currency conversion fees than Stake.
Stake Pros and Cons
Pros
- The Stake app is a fantastic option for individuals from other nations who want to trade US equities for their local currency.
- US trades are free. It implies you won’t have to worry about additional fees when trading with Stake.
- For Australian trading, Stake offers the lowest flat-fee brokerage.
- You must submit your US tax form automatically to avoid paying a higher US tax rate on trading profits. For this service, you will be charged $5.
- With Stake, invest in a part of a stock. You may buy or sell fractional shares. You don’t have to buy expensive stocks as a whole, like Google or Nestle.
- There’s also promotion of new sign-up, which gives new users a free stock gift just for signing up. For example, if you join Stake, get a free Nike, Dropbox, or GoPro stock just for signing up.
Cons
- When you convert AUD into USD or any currency in USD, you will be charged a 0.7% fee on deposits.
- If you wish to trade frequently, you’ll want to open a Black Stake account. Because after selling out any shares, it will take approximately two days for your money to be available to you.
- Charts are less detailed, and past data is limited to three years.
- You’ll need to search elsewhere if you want to access other worldwide markets in addition to the US and Australia.
Stake vs FreeTrade vs Trading212
Let’s have a look at how Stake compares to the competition. Trading 212 and Freetrade are among the most well-known names in the United Kingdom, with comparable services, and they’re now competing against Stake.
Stake and Trading 212 provide both US equities and ETFs, with Stake having an advantage in terms of the number of US equities and ETFs accessible. Regarding onboard assets, Freetrade has a smaller number than Stake, putting it in third place.
Stake also has a wealth of information and analysis, with which it outperforms Freetrade. On the other side, the most recent version, which includes improved financial data and new capabilities, is now outdoing Trading 212 too.
Stake offers a premium account – Stake Black with extra features at $9 per month. On the other side, Freetrade Plus is a paid membership program at £9.99 per month. Limited orders are one of the key selling points for Freetrade Plus, but in Stake’s free account, there is no such limit.
Freetrade has also established many of its equities behind a subscription, making them only accessible to Plus members. Stake, on the other hand, does not limit account users with any stocks available, regardless of whether you have a free or paid account.
Is It Safe to Invest with Stake?
The Stake is permitted in Australia, and the Australian Securities and Investment Commission (ASIC) is its regulatory body. FINRA regulates Drive Wealth, the US brokerage partner of Stake. In addition, it is a SIPC member (Securities Investor Protection Corporation).
