What is ASB Securities?
ASB Securities is a service offered by ASB. It is a do-it-yourself share trading account offering access to New Zealand and Australian markets through a desktop or mobile browser. Other overseas markets, in Canada, Europe, the UK and USA, can be accessed, by phone, through ASB's broker team.
Unlike many other online share trading platforms, which trade on your behalf, ASB Securities provides direct trading. This means you own the shares outright.
What can people invest in through ASB Securities?
Through your ASB Securities share trading account, you can invest in more than 170 companies listed on the New Zealand stock exchange (NZX) and over 1800 equities listed on the Australian stock exchange (ASX).
Through ASB Securities you can invest in:
- Shares: When you buy shares, you invest in a particular company, like Tesla or Facebook. Shares can be bought or sold between people on an exchange, which is a market where people can trade shares.
- Exchange traded funds: ETFs are a group of different assets rather than one particular company, but they trade like shares on an exchange. Think of it in terms of a bakery. Buying individual doughnuts is like buying shares. You pay the price for each different kind of doughnut. An ETF is like buying a box of doughnuts, you get all the different types, which can be grouped by a theme.
- Fixed interest securities: Fixed interest securities are debt investments that pay a fixed or floating rate of return. When a company wants to raise funds, it can issue bonds. The bond is like an IOU. As an investor, you are lending money to the issuer. You buy or invest in a bond and in return, the issuer intends to pay you interest and repay you in full at a date in the future.
Some key features of ASB Securities include:
- No account fees*
- Free newsletters and market data
- ASB margin lending service
*Standard service charges may apply
How much does it cost to invest with ASB Securities?
Because ASB Securities offers direct share trading, minimum holding amounts are set by the companies you're investing in. Additionally, because you are unable to purchase less than a share, if one share of a company costs $30, you can only invest in increments of $30.
The fees charged by ASB Securities for New Zealand trades are:
- NZ$15 for trades up to $1000
- NZ$30 for trades over $1000 and up to $10,000
- 0.30% on trades over $10,000
The fees charged by ASB Securities for Australian trades are:
- AU$15 for trades up to $1000
- AU$30 for trades over $1000 and up to $10000
- 0.30% on all trades over $10,000
It's important to note that New Zealand and Australian trades can be done via phone, but typically cost more than online trading.
For other international trades, these can only be done through ASB's broker team, by phone. The fees vary depending on the market.
There's also a management fee built into the price of ETFs, charged by the fund manager. The fees are different for each fund, so check the fund info before you invest.
How do I sign up to ASB Securities?
In order to access ASB Securities, you need to open up a cash management account. This account has zero fees, and it is used to hold the funds that you wish to trade. If you're an existing ASB customer, you can easily set up an ASB securities account through ASB's FastNet Internet Banking.
If you're not an existing customer, you will have to set up an account, which can be done online or by visiting an ASB branch.
If you are planning to trade in offshore markets, you may want to consider opening an ASB foreign currency account. This can be done online.
A joint share trading package is also available for individual or joint applicants.
You must be 18 years or older, and living in New Zealand to set up this account.