Can I buy shares in an unlisted company via an SMSF? Yes – just not from yourself or a related party #SMSF https://t.co/6QaSmczBYD
Stake SMSF
Buy US Shares in Australia with your Super
Grow SMSF has put together a special offering: Grow US. We think Stake is the best way to trade US stocks from Australia and answers the question of how to buy US stocks in Australia with your superannuation.
Stake is widely believed to be the best way to trade US stocks from Australia.
I opened a Stake account personally back in 2018 and got to know their team after writing a Stake review. My motivation was to diversify my SMSF portfolio by investing directly into companies that were part of the tech heavy NASDAQ.
I found Stake Australia easy to use and superior in both cost and functionality versus Commsec international trading.
The Stake fees are very competitive: 0.70% to transfer money from the Australian dollar Macquarie Cash Management Account to Stakes US broker account DriveWealth. Although some people are quick to point out that other solutions such as Commsec International Trading, ANZ Share Investing, NAB Trade and Westpac Online Investing offer cheaper AUD / USD forex spreads – around 0.60% their brokerage fees for buying US stocks such as Amazon, Tesla, Apple, Facebook, Alphabet (Google), Netflix and even Berkshire Hathaway were a lot higher compared to Stake which has $0 commission free brokerage similar to US based Robinhood.
Stake SMSF solution.
We’ve designed a self-managed super fund solution that enables you to invest in US shares using your super.
We’ve partnered with Stake so you can trade US stocks from Australia.
We’ve partnered with Stake so you can trade US stocks from Australia.
Invest your super directly in the US and AUS markets.
Stake SMSF.
New SMSF setup
If you’ve made the decision that an SMSF is right for you, we can help you get set up the right way.
Easy SMSF transfer
We can transfer an existing SMSF from your current accountant or provider to our Stake solution at no cost.
We handle the paperwork
We take care of all the SMSF paperwork including tax returns, accounts, audit, trustee minutes and cost-base tracking. End-to-end SMSF solution.
Compare Stake’s brokerages fees
Stake is the best way to trade US stocks from Australia.
| Trade Size $USD | Stake | CommSec International | ANZ Share Inv. | NAB Trade | Westpac Online |
|---|---|---|---|---|---|
| $5,001 | $0.00 | $29.95 | $59.00 | $19.95 | $29.95 |
| $10,001 | $0.00 | $31.00 | $59.00 | $19.95 | $31.00 |
| $100,000 | $0.00 | $310.00 | $590.00 | $110.00 | $310.00 |
| $1,000,000 | $0.00 | $3,100.00 | $5,900.00 | $1,100.00 | $3,100.00 |
Current as at August 2020. Refer to Commsec International Trading, ANZ Share Investing, NAB Trade & Westpac Online Investing (PDF) for most up to date brokerage fees.
The above table does not include foreign exchange fees (FX spread) which are: Commsec – 0.60%, ANZ – 0.60%, NAB – between 0.50% & 0.80%, Westpac – 0.60%.
The above is not a comprehensive comparison of all brokers who enable the trading of US stocks from Australia.
How does a Stake SMSF work?
Click below for further information on the Stake SMSF Account or Transaction Account
Stake SMSF Account
Stake has partnered with US broker DriveWealth to provide Australian investors access to US stock exchanges.
DriveWealth Trading Account
DriveWealth provides the US brokerage and execution services to Stake and its customers. It is connected to the relevant exchanges to ensure that orders are executed in accordance with the client’s instructions. DriveWealth, LLC is a US broker-dealer registered with FINRA (US regulator) and is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). You can read more about SIPC at www.sipc.org.
Unlike Australia, the CHESS sponsorship does not exist in the US. Any US stocks and ETFs purchased via DriveWealth are held under a custody arrangement on your behalf. As per the account statements provided by Stake, custodial services provided Citibank, N.A and Velox Clearing LLC. For comparison, any US stocks purchased via Westpac Online Investing or Commsec International are held by Pershings as the custodian under a similar arrangement.
With Stake your SMSF is always the beneficial owner with a legal entitlement to the shares. This is similar to Australian to investment ‘wrap’ accounts like BT, Netwealth, HUB24. They own all the assets in their name on your behalf, but you / your SMSF are/is the entitled owner. The custodian arrangement is the default in the US and enables fractional shares which is useful.
Importantly the assets they hold as custodian are not theirs – and they’re not intermingled with the banks own assets so even if Citibank or DriveWealth or Stake or anyone goes out of business, you still have legal entitlement to the assets.
It’s the opinion of the Grow SMSF team that Stake is the best way to trade US stocks from Australia.
SMSF Transaction Account – Macquarie CMA
The second key component of the Grow SMSF Stake solution is the Transaction Account. Stake uses the Macquarie Cash Management Account (CMA) as the linked Australian dollar bank account for your SMSF.
The Macquarie CMA acts as the central HUB for the self-managed super fund receiving all income, paying all expenses and being the source of monies for all investments. To buy US stocks and ETFs in the name of your SMSF using Stake money first needs to be deposited into the Macquarie CMA. From there, via the Stake app or website, you initiate a transfer from Australian to US dollars.
You have a number of options to transfer Australian dollars to US dollars with Stake:
- Regular bank transfer
- POLi
- Debit / credit card
The regular bank transfer option is by far the cheapest option. Stake also offers an express funding option at a premium (0.50% extra). Refer to the Stake pricing page for the detailed fees on FX transfers. It’s important to note the regular bank transfer option is currently only available via the web browser desktop interface – it’s not availble via the Stake mobile apps.
If you have an existing SMSF that already has a Macquarie CMA, you can link the existing CMA to Stake as part of your new account set up. More information on how to do this is included in the following Stake support article: Link existing Macquarie account.
Grow SMSF does not mandate which bank account you use for your SMSF transaction account, however as part of the creation of a new Stake SMSF account, you will be provided with a Macquarie CMA.
To be eligible for the Stake Base and Flexi fixed fee packages, you are required to use an SMSF transaction account that provides an automated feed into our SMSF accounting platform. The Macquarie CMA fulfills this criteria.
For a list of all bank accounts that fulfill this criteria, please contact us.
Deposits into your SMSF transaction account
The following are examples of the type of deposits that might be received into an SMSF transaction account:
- Rollovers / transfers from external superannuation funds
- Contributions from members of the SMSF
- Contributions from employers
- Interest income from banks
- Dividends and distributions from investments (excluding from stocks and ETFs purchased through Stake as these are deposited into the Stake USD cash account)
- Tax refunds
- Transfers of cash from your Stake USD trading account
Withdrawals from your SMSF transaction account
The following are examples of the type of withdrawals that might be paid from an SMSF transaction account:
- Transfer of cash to your Stake USD trading account
- Expense payments (e.g. SMSF administration, financial advice fees, independent audit etc)
- Insurance premium payments (life, disability insurance etc)
- Bank fees
- Tax payments
- Member benefit payments (pensions and lump sums)
Stake Review
TrustPilot.com 63% rate Stake ‘Excellent’
ProductReview.com.au: 3.2/5.0
ProductReview.com.au: 3.2/5.0
Best place to trade the US market from Australia. Hands down.
Great, sleek investing app with no brokerage fees too.
Able to invest and trade in some of the biggest companies, but also some pretty cool ETFs when the market has been volatile.
Definitely the future of investing for Aussies!
Able to invest and trade in some of the biggest companies, but also some pretty cool ETFs when the market has been volatile.
Definitely the future of investing for Aussies!
Trenton Briar
via ProductReview.com.au
It’s become my go to for trading US equities
Have always used IG for trading US equities due to the robustness of their platform. Started using Stake about 18 months ago and loving the ongoing updates and improvements to the platform. Couldn’t think of going elsewhere at this point and can’t wait to see more features (I’ve been talking to their team about dark mode and good till cancelled orders) in the future.
Also like the ease in buying inverse / volatility ETFs. Super handy with the current market conditions to get some exposure to TVIX!
Platform is solid, especially the mobile app. I can see them making gradual improvements to the web version too, hopefully we’ll continue to see that in the coming months.
Also like the ease in buying inverse / volatility ETFs. Super handy with the current market conditions to get some exposure to TVIX!
Platform is solid, especially the mobile app. I can see them making gradual improvements to the web version too, hopefully we’ll continue to see that in the coming months.
VolatilityGod123
via ProductReview.com.au
Finally a platform allowing Aussies to trade US stocks commission-free!
I’ve been using Stake for almost 2 years and have been really happy with the platform and service! It’s super easy to use and by far the cheapest way to trade US stocks from Australia.
Andrew
via ProductReview.com.au
Easy as
The interface is really simple and the support team were very helpful. Also, I managed to get in on the upside of TVIX. Epic. I highly recommend it to anyone!
etflover
via ProductReview.com.au
Perfect, achieves everything it sets out to
This app is perfect for me. Downloaded this app to trade US stocks and it allows me to do that exactly without any fuss. Furthermore, the market data it provides is extremely helpful! Some hiccups here and there but customer service is quick to respond and actively helps with providing solutions.
Recommend to anyone who is even considering trading US stocks from Australia
Recommend to anyone who is even considering trading US stocks from Australia
Jay
via ProductReview.com.au
Very Happy with Stake
Very happy with Stake and given the changes in the pipeline with far more advanced features and tiered brokerage, I will be using it for all my U.S trades. They also have some selected stocks in emerging markets and it would be great, from an Australian perspective, if we could get more Indian and Indonesian stocks.
The interface in stake is really unlike any other. Its incluttered in a word. It will be interesting to see how they present the new features. Hopefully you will be able to toggle the ones you want on and off with relative ease because I like the uncluttered nature of it.
Recommended.
The interface in stake is really unlike any other. Its incluttered in a word. It will be interesting to see how they present the new features. Hopefully you will be able to toggle the ones you want on and off with relative ease because I like the uncluttered nature of it.
Recommended.
Matt H
via ProductReview.com.au
How do Stake’s reviews compare to similar companies?
Turns out share traders are notoriously harsh markers when it comes to online reviews of trading platforms.
Stake reviews at 3.2/5 on ProductReview.com.au – so how does this compare to others? Let’s take a look:
Commsec International Trading – 1.9/5, ANZ Share Investing – 1.1/5, NAB Trade – 1.5/5, IG – 1.2/5
Frequently Asked Questions
Does Grow SMSF receive commission or kick-backs from Stake?
No.
Grow SMSF and our Grow US solution is completely independent of Stake. We do no receive any commissions, referral fees or any other compensation from Stake.
Grow SMSF offers a discounted solution to make a self-managed super fund more accessible for self-directed investors looking to use Stake to buy or trade US stocks from Australia.
How is Grow SMSF different to cheaper online providers like esuperfund?
There are a number of differences if you were to compare Grow SMSF to many of the low cost online only service providers available. We recommend anyone comparing SMSF service providers look at the following as part of their research:
- Service: We provide personalised phone and email support. You are not forced to make all communication via an online portal. Our phone number (1300 651 263) is readily available during business hours (AEST). Check to see whether other providers have a phone number you can call to speak to a human.
- Transparency: Grow SMSF does not receive any commission or referral fees from any of the solution providers we work with including SelfWealth. Some other SMSF service providers receive commissions which increase the ongoing costs of using their preferred suppliers. Check the Product Disclosure Statement (PDS) of those providers to see how much they receive in commissions.
- Work Required from you: Some providers are not ‘full service’ SMSF administration providers – they could better be described as an online accounting system with an SMSF audit and lodgement function attached. Grow SMSF does not require you to categorise or code any of your SMSF transactions yourself.
The above is not a comprehensive list. Take a look at our blog to find more specific information on comparing Grow SMSF to other service providers.
Is the Grow US Stake SMSF solution the best way to trade US stocks from Australia using superannuation?
In our opinion it’s the most transparent way if you are looking at how to buy international shares from Australia – namely the NASDAQ if you want to buy Tesla shares and not use the expensive brokerage of the bank owned Commsec International Platform.
Kris Kitto from Grow SMSF has been using Stake for his own SMSF portfolio for the last few years and found the Stake fees are very competitive and it’s been the easiest way to buy US stocks using superannuation. There are other superwrap solutions such as HUB24 and Netwealth which can also enable ownership and gives super investors the ability to buy US shares in Australia, and these many be good solutions for people who don’t want an SMSF.
I already have a Stake account in my personal name. Do I need a DIFFERENT Stake account for my SMSF?
Yes.
One of the most fundamental principles of a self-managed super fund is separation of assets. A separate Stake account is needed in the name of the SMSF.
Separation of assets means that assets, accounts and investments of an SMSF must be in the name of the trustee of the fund on behalf of the SMSF and cannot be mixed or intertwined with assets and investments of the members / trustees of the fund. If a trustee fails to keep assets of an SMSF separate the breach of the regulations must be reported to the ATO by the independent auditor of the fund. The trustee(s) could be personally fined or in extreme cases the ATO may deem the fund non-complying.
Is Stake a suitable solution for day trading?
If day trading is a strategy you wish to pursue, we suggest you undertake your own research into suitable providers before opening an SMSF and a Stake account for that purpose.
How much does it cost to set up an SMSF?
The set up fees for a new SMSF are as follows:
- $275 with individual trustees;
- $990 with a company trustee
Grow SMSF intentionally DOES NOT offer ‘FREE’ SMSF establishment to ensure we provide you with the best possible upfront support and service you deserve.
Does Grow SMSF track transactions for CGT reporting? Or do I need to use something like Sharesight?
There is no need to use any 3rd-party tools to separately track your SMSF portfolio. Incorporated into our solution is detailed investment and capital gains tax (CGT) reporting.
With Grow SMSF as part of our Stake SMSF solution, we will upload all your trades and transactions into our SMSF accounting platform (normally next business day). We track all holdings in your Stake portfolio and when you sell the system will automatically minimise the capital gains on the sale.
At this time the uploading of Stake trades and transactions is a manual process. For Grow SMSF to complete your annual SMSF accounts, tax return and audit, you will be required to download and provide certain reports and statement from the Stake online platform. We will then load all the trades into our SMSF software and convert everything into Australian dollars.
In addition to CGT reporting, we also take care of the realised and unrealised gains on USD <> AUD currency conversions.
Once your portfolio is up to date in our SMSF accounting platform, we can provide you with online access. Our software provides daily pricing updates so you can see the value of your portfolio.
If you are on the Stake Base $95 per month fee ($1,180 per annum including SMSF audit) we only upload and update your Stake portfolio transactions and holdings once per year. If you are on the Stake Flexi or Bespoke service packages we can update your portfolio on a more regular basis (monthly) which might be useful if you want to regularly track your portfolio position and any capital gains / losses in Australian dollars for the year.
Can my SMSF pay for Premium Upgrades with Stake?
Yes.
Stake Premium Upgrades can be paid for from your US dollar cash account.
For more information, refer to the Stake pricing schedule (PDF) or refer their Pricing page (https://hellostake.com/pricing/) for the latest details on all their costs.
Does Grow SMSF provide financial advice?
No.
Grow SMSF does not hold an Australian Financial Services Licence (AFSL) or is not an authorised representative of an AFSL holder.
The advice and support we provide to our clients is limited to either taxation or the compliance of your self-managed super fund under the relevant laws and regulations.
Grow SMSF is not a financial adviser. We do not issue advice, recommendations or opinion in relation to acquiring, holding or disposing of investments or superannuation interests.
Any information contained within this website is provided as an information service only and, therefore, does not constitute, and should not be relied upon as, financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs, and you will need to make your own decision about how to proceed.
Alternatively, for financial product advice that takes account of your particular objectives, financial situation or needs, you should consider seeking financial advice from an Australian Financial Services licensee before making a financial decision.
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Related Articles
How to set up a Stake SMSF account
Setting up a new SMSF Stake account is easy – especially if you have an existing Stake Individual Account.
Selfwealth versus Stake Fee Comparison
With SelfWealth soon to launch its US trading solution, I thought it would be timely to open my trusty spreadsheets and undertake a SelfWealth versus Stake comparison.
Buy US shares using super with Stake
You can use your super to buy US shares with Stake. Stake is the best way to buy US stocks from Australia.
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We’ve received a lot of interest in our Stake SMSF offer. Although this is not the official Super by Stake solutio… https://t.co/RO8HbiJW9r
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Copyright © 2020 by Grow SMSF Pty Ltd. All rights reserved.
General Information Warning & Disclaimer
All information contained on this website is provided as an information service only and, therefore, does not constitute, and should not be relied upon as, financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs, and you will need to make your own decision about how to proceed. Alternatively, for financial product advice that takes account of your particular objectives, financial situation or needs, you should consider seeking financial advice from an Australian Financial Services licensee before making a financial decision.
Grow SMSF does not hold an Australian Financial Services Licence (AFSL) and we are not authorised representatives of a AFSL. We do not provide financial product advice or recommend any financial products either expressly or implied.
From time to time Grow SMSF may produce information or content about specific financial products or services that enable access to specific financial products however we do not recommend, endorse or confirm as suitable any financial product or service featured on the Grow SMSF website or social media assets. This condition specifically applies to any financial product where Grow SMSF provides services at a discounted or preferential fee due to the use of those products, services or accounts. It’s not compulsory to utilise a specific account or service provider to be a client of Grow SMSF however the types of accounts, investments and service providers you use for your SMSF will determine the fees your SMSF is charged.
Where Grow SMSF provides information in relation to a financial product or service supported by or integrated with Grow SMSF the information is factual information only about the operation of the account or service and how data or reporting information is made available to us. Before making a decision on any financial product for your SMSF you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision. As financial product and solution providers are frequently making changes to their products and services Grow SMSF cannot accept any responsibility for any outdated or inaccurate information provided on this website or via social media assets.
Grow SMSF Gold Coast based accountants looking after SMSF trustees from around Australia.
Liability limited by a Scheme approved under Professional Standards Legislation.