Compare Online Share Trading platforms in New Zealand at Canstar. Sharesies, ASB Securities, CMC Markets, Direct Broking and Hatch were compared on Overall Satisfaction, Account Info & Management, Communication, Customer Service, Educational Resources, Fees (Brokerage and Ongoing), Platform Reliability, Research Capabilities, Value for Money
Once the reserve of the rich and financially well-connected, thanks to online tools, now anybody with a smart phone and a few spare bucks can invest in stocks markets home and abroad.
Online share trading platforms are easy to use and cheap. And, over the past couple of years, they’ve exploded in popularity. Across the globe, a whole new generation has embraced investing in shares, lured by the promise of quick and easy returns. And terms such as EFTs (exchange-traded funds), CFDs (contracts for difference) and ADRs (American depositary receipts) have become part of the vernacular.
But as apps such as Sharesies and Hatch have proliferated, and more established share trading brokerages have increased their online footprints and ease of use, consumers have been faced with greater uncertainty about the quality of the services provided.
Indeed, in the US, apps such as Robinhood have been accused of turning investment into an addictive game; of using the same techniques as poker machine manufacturers to encourage users to invest, and not providing clear education into the inherent risks.
In New Zealand, there’s a wide choice of online share platforms. So as part of our mission to inform consumers of the best products and services, this year we are proud to announce Canstar’s inaugural award for Most Satisfied Customers | Online Share Trading.
To rate the providers in the market, our expert research panel canvassed the opinions of 859 New Zealanders who invest online, to measure and track their satisfaction with their provider across a range of categories.
To decide which online share trading platform offers the best level of customer satisfaction, each was rated across the following categories:
Coming out on top is Sharesies. The homegrown success story is the clear winner of Canstar first award for Most Satisfied Customers | Online Share Trading. In our ratings, it’s the only platform to earn our Five-Star rating for Overall Satisfaction, which it achieves through strong performances across the board, especially for Fees, Account Management and Account Reliability.
Many online trading apps charge very low fees. And it’s interesting to note that this is reflected in our research.
Only 11% of respondents rate fees as a main concern. Overwhelmingly it’s the reliability of the investment platform and the ability to access account information quickly and easily that drive users’ satisfaction.
Given that a quarter of those in our survey admit to making uneducated investment decisions and 12% treat it like taking a punt on a lottery ticket each week, it’s not surprising that platforms educational and research functionalities don’t rate highly with users. Overall, the main drivers of satisfaction are:
Half of the investors in our survey use apps to trade. And Sharesies has always been front and centre at driving the fintech revolution in investment.
Founded here in 2017, Sharesies now has hundreds of thousands of users across NZ and Australia who, together, have over $1.2bn invested.
Through Sharesies, you can invest in over 3000 companies, exchange-traded funds (ETFs) and managed funds. It provides access to the New Zealand Stock Exchange (NZX), Nasdaq, New York Stock Exchange (NYSE), Chicago Board Options Exchange (CBOE), and the Australian Securities Exchange (ASX).
Of course, investment of any kind isn’t to be taken lightly. You are always at risk of losing money. That said most of the investors in our survey are modest traders, with under $500 invested; and 42% said they only invest money they are prepared to lose. As such you should always do your research: 43% say they always investigate companies before investing in them.
And the same can be said for online share trading platforms: always do your research. And what better place to start than our up-to-date research and Sharesies, the winner of our award for Most Satisfied Customers | Online Share Trading 2021.
Use an online app to participate in share trading: 50%
Research companies before investing: 43%
Only invest as much as prepared to lose: 42%
Invest because of the ease of apps: 31%
Invest in NZ companies to support the economy: 30%
Have lost money share trading: 29%
Invested in shares rather than property: 26%
Traded in shares despite not being well informed: 25%
Know more about online portfolio than KiwiSaver: 25%
Check trading account at least once a day: 21%
Invest in EFTs as think they are safer: 19%
Invest mainly in overseas markets: 15%
Been surprised by fees: 12%
Treat share trading like lotto: 12%
$50,000 or more: 3%
New Zealand: 77%
Canstar Blue surveyed 5000 New Zealand consumers across a range of categories to measure and track customer satisfaction, via ISO 26362 accredited research panels managed by Qualtrics. The outcomes reported are the results from respondents who have an online share trading and have traded in the past 12 months. In this case, 859 New Zealanders. Brands must have received at least 30 responses to be included. Results are comparative and it should be noted that brands receiving three stars have still achieved a satisfaction measure of at least six out of 10. Not all brands available in the market have been compared in this survey. The ratings table is first sorted by star ratings and then by mean overall satisfaction. A rated brand may receive a ‘N/A’ (Not Applicable) rating if it does not receive the minimum number of responses for that criteria.
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