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).
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.
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.
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.
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.
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.
|CHESS Sponsored + Backed by ANZ||No 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|
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.
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.
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.
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.
Category: Blog Feed, Apps, SelfWealth, Stock Market InvestingTags: Best share trading platform in Australia, Best way to buy shares in Australia, Is SelfWealth CHESS Sponsored, Is SelfWealth legit, SelfWealth, SelfWealth brokerage, SelfWealth Review, SelfWealth Review 2020