SelfWealth Review – Is This Australia’s Best Share Trading Platform?

Welcome to my SelfWealth Review. Today I’ll discuss the popular Australian owned and operated share trading platform. I will be covering the pros and cons of this app to see if it is the right investment platform for you. 

What is SelfWealth?

SelfWealth is a CHESS sponsored, share trading broker that is Australian owned and operated. Downloadable as an app and accessible via desktop, this trading platform is extremely easy to use and access, making it ideal for people looking to invest in the Australian Stock Exchange (ASX). 

Pros of SelfWealth

Cheapest Flat Rate Brokerage Costs in Australia

SelfWealth Review - Flat Rate Brokerage

Currently, SelfWealth offers the cheapest brokerage fees in Australia, with a flat rate brokerage fee of $9.50. Meaning that if you decide to purchase $500 worth of shares or $500,000, you will always be charged $9.50. Other competitors such as the Big 4 banks have brokerage fees starting off around the $14.95 mark, with the majority increasing the fee as your transactions become larger. For this factor alone, SelfWealth can be the most cost-effective investment platform in the Australia.

CHESS Sponsored

SelfWealth Review - What is CHESS Sponsorship?

To make matters even better, SelfWealth offers CHESS Sponsored Shares.

If you join a broker that is CHESS sponsored, you’ll be given a Holder Identification Number (HIN). When you purchase or sell shares that are CHESS sponsored, the Australian Stock Exchange (ASX) keeps a record of it. Under this model, you are the sole owner of those shares.

Subsequently, in the event that SelfWealth or any other investment company that is CHESS sponsored were to liquidate, the shares still remain in your name and therefore won’t be sold or lost.

Backed by ANZ

SelfWealth Review - ANZ Backed

To add to the security of your shares being CHESS sponsored, SelfWealth is also partnered with ANZ bank. As a part of the registration process for SelfWealth, you will receive an ANZ trading account to store your money, purchase shares, receive dividends and actualise capital gains when you sell shares. This means that in the unlikely event of SelfWealth declaring bankruptcy, your funds will remain untouched, due to being held in a closed trust by ANZ. 

For the above reasons, I personally use SelfWealth to invest in ETFs and shares, as the easy to navigate user interface, CHESS sponsorship and cheap flat rate brokerage costs make it unrivalled at this stage. However, there are alternative investment platforms out there that may be more suited to your investing needs. Subsequently, I will go over a few of the things that may make SelfWealth less appealing in your eyes. 

Limitations of SelfWealth

You Have to Use Their Designated Account 

This next point wasn’t an issue for me, but SelfWealth doesn’t allow you to use your own personal bank account to purchase shares, as you automatically create an ANZ account when you join. As a result, you will have to manually transfer money in and out of this account from your main banking account, which can take a few days depending on your banking institution. 

No Interest Rates for Holding Account

The last issue with SelfWealth is that there are no interest rates for cash held in the ANZ holding account. For people who like to hold a lot of cash and try and time the market, this can be detrimental as the lack of interest means that you lose money due to inflation depending on how long you keep it in there. Other investment platforms typically offer some form of interest, meaning that the money depreciates at a slower rate. However, if you simply move funds in and out to purchase shares on a routine basis through dollar-cost averaging then this shouldn’t be much of concern. 

Summary – Pros and Cons of SelfWealth

CHESS Sponsored + Backed by ANZNo interest on cash in your holding account
Cheapest Flat Rate Brokerage Fee in Australia at $9.50 per transaction. You can’t use your banking account to purchase shares
Very easy to set up an account and use the app

SelfWealth ReviewConclusion

In my eyes, SelfWealth is the best share trading platform available in Australia. With the cheapest flat rate brokerage fees, a great user interface, offering CHESS sponsored shares and being backed by ANZ, I highly recommend SelfWealth for people looking to invest in the ASX. However, if you are adamant about keeping your everyday account as your investment account or if you’re looking for a brokerage account with interest rates, there are better options elsewhere.

Added Bonus – 5 Free Shares for the First Month

If after reading this review you have decided to open an account through SelfWealth, you can use my Referral Link to get 5 free shares during your first month. This means that you can save up to $47.50 on brokerage fees, regardless of how little or how much you invest with each transaction.

New members also receive a complimentary 90 day free trial of SelfWealth Premium which is an optional service that provides market depth, stock analysis and live pricing. After the trial ends, you can either elect to continue your subscription to SelfWealth Premium or you can simply use the free version. 

To further help you on your investment journey, please refer to this Investment Frequency Calculator. It will help you determine the optimal investing frequency for your budget, to ensure the highest possible returns with the lowest brokerage fees over a long investment horizon.

Guide on How to Buy and Sell Shares/ETFs on SelfWealth

If you would like a step-by-step process on how to purchase and sell equities through SelfWealth, you can use my easy to follow guide.

Want to Learn About Popular Investment Options offered on SelfWealth?

If you decide that you would like to sign up with SelfWealth, I recommend having a read on these popular investment options. In these guides, I review the common types that exist and cover their pros and cons.

ETFs Explained

LICs Explained

REITs Explained

2 Comments on “SelfWealth Review – Is This Australia’s Best Share Trading Platform?

  1. I agree, I think SelfWealth is 100% the best brokerage platform for Aussies on the path to Financial Independence. I don’t think any of the cons listed should really matter. Firstly the No access to international market thing – You can buy cross listed or Aussie domiciled Exchange Traded Funds which give you international Exposure – I use Vanguards VTS (USA) and VEU (world minus US) ETFs to achieve this, albeit my holdings are small but growing. Secondly no interest on your cash account, this shouldn’t really matter as you shouldn’t leave cash lying around your brokerage account anyway. Thirdly yes the transfer time is annoying and banks using Osko and other instant payment systems have no excuse for this large wait time – having said that, if your disciplined enough to be on the path to FIRE, then your disciplined enough to factor this one or two day wait into your regular investment plan.

    Great review of SelfWealth. Thanks for sharing

    • Thanks for your insights CaptainFI. I agree that for the most part, the cons mentioned, will not impact the majority of people chasing Financial Independence, who are relying on ETF investing. However, I have noticed a growing trend among the community of FI chasers adding individual stocks (albeit in small proportions) to their portfolios. For people who wish to handpick companies, particularly international ones, the cons may have a more pertinent impact. Although as CaptainFI has pointed out, you can gain international exposure to these companies through Australian domiciled ETFs offered on SelfWealth.

      But once again, you are very right in the notion that these cons are inconsequential for the typical FI chaser who is relying on a dollar-cost averaging approach to ETFs and as such, SelfWealth caters for the vast majority of long-term investors and is a very useful platform.

      If any of my readers are unfamiliar with CaptainFI, he is one of the main proponents for Financial Independence in Australia and I cannot recommend his website enough for gaining information on a range of topics related to the FIRE and FI movements. You can view his content on the link below:

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