The US Sharemarket is the most profitable share market globally that offers options for the top global companies from the US and other countries. There are many ways to invest in US shares from New Zealand. You can choose from platforms like Hatch and Stake to buy and sell US shares. Some New Zealand platforms also offer US-focused managed funds, while e-brokers will help you find the right options. Usually, there are no monthly fees for these platforms, so you can join for free while keeping your ongoing cost down. But before you make your first investment, you must know about the platforms that you can consider to minimize the investor costs and get the most returns. Here is what to know before investing the NZ dollar in the US Sharemarket.
The brokers who help you find the right options may or may not charge a fee to buy and sell shares for you. The average fee for investing in the share market may range from $0-$30. Some brokers also offer free service while they make profits from the spread. The stake is the cheapest brokerage available in New Zealand right now that offers 0% brokerage fees.
NZD to USD conversion will cost you
When you exchange currency on forex based on the spot rate, you will be losing some money as a margin while investing. Hatch takes 0.50% for conversion compared to 1%-1.5% charged by other platforms. It means that for every $1000, you will pay from $5-$15. You will have to pay the same again when converting from the US dollar to the NZ dollar. Invest in a platform that lets you keep your money online to invest in multiple trades rather than a platform that offers instant conversion.
Most platforms charge no fees
Most of the investment platforms charge zero fees for keeping money online. You will only pay when making a trade. Stake offers some extra features for a monthly fee, such as trading with unsettled funds and a stop-loss feature.
Road test the platforms to find your best
It is always better to have extra needless information for the shares than to have limited information. You must be informed as much as possible about your company. Use online tools to check the latest data for the companies. The most common information you need includes share price updates and statistics that help you search for companies by sector. Today, most platforms have a mobile dedicated version for their tools that can provide better access to the information than a website only platforms.
Check the customer support
Last but not least, check for customer support and how easily you can access it. Find out the ways you can communicate with the support team and whether the support will be available at all times. Traders require quick assistance to make urgent decisions, and if a company fails to provide the right solutions on time, it can result in losses for the investors.