Pioneering brokerage, Stake, brings world-first $0 brokerage to the ASX with ‘three to free’ offering

Pioneering brokerage, Stake, brings world-first $0 brokerage to the ASX with ‘three to free’ offering

After sitting in the ‘too hard basket’ for decades, digital brokerage Stake is shaking up investing for Aussies, doing what they famously did for Wall St and bringing $0 brokerage to the ASX for the first time ever. On a CHESS-sponsored model, no less.

“It’s been four years since we pioneered $0 commission for US shares and during that time have maintained the core belief that there’s no reason Australians should be stung with high brokerage fees, regardless of the market they’re trading on,” said Stake CEO and Founder Matt Leibowitz.

“We launched ASX trading on Stake late last year because we believed ASX brokerage could be done better. With over 60,000 customers joining in just a few short months we’re excited by the impact we’ve had.

Previously considered impossible and getting to $0 brokerage on the ASX has been achieved thanks to a unique ‘three to free’ referral method, allowing customers to refer friends in exchange for discounted brokerage, with the opportunity to continue free brokerage indefinitely.

For each person a customer refers, their brokerage drops by $1 for 1 year. That means just three referrals can get you to $0. Plus, referrals beyond the third are banked and kick-in once another has expired. So, customers can keep their fee-free ASX trading rolling.

Those referred must sign up to Stake and fund their account for the referral to be valid.

Until now, the possibility of fees on ASX trades falling to zero has been deemed impossible. Stake breaking this barrier to bring $0 brokerage to the ASX meant drawing a line in the sand to all others operating in the investing space, Leibowitz said, “The more players operating, the more pressure there is to deliver what’s best for consumers while ensuring the long-term viability of their platform. That’s what we’ve done, and we’ve done it in a sustainable way.”

“We’re able to remain profitable without charging the fees that other higher frequency brokerage houses do.”

“With Stake, those investing on the ASX have everything they need – access to more than 2000 companies and exchange-traded funds (ETFs), CHESS-sponsorship, instant funding into an AUD wallet, and a dedicated dashboard for their Australian holdings. Now they can get all of that with $0 brokerage for as long as they want, given they’ve got the hustle.”

That’s in addition to Stake’s mainstay $0 brokerage on more than 6000 US stocks and ETFs which can be traded on both its app and website.

Since its launch in 2017, Stake has amassed nearly 500,000 customers, and more than US$1.5 billion in funds under management, across Australia, New Zealand, the UK, and Brazil. This has been achieved by spearheading commission-free brokerage yet still offering investors sophistication through advanced order types, analyst ratings and price targets, full company financial data, as well as fractional shares.