Sharesies, Kernel and Hatch — what you'll actually pay
Comparing New Zealand investing platforms is harder than it should be. Fees are a mix of percentages and flat amounts, some charged in US dollars, some capped, some waived under a monthly plan. Working out what you'd actually pay takes real arithmetic.
These calculators do it for you, in New Zealand dollars.
Start here if you want a quick answer
The fee grid needs nothing from you. It shows a range of investment amounts and which platform and plan is cheapest at each one, for both regular and one-off investing.
If you just want to know roughly where you sit, that's the fastest route.
One thing to note: Kernel and Hatch only offer US-listed ETFs and shares. So for NZ and Australian investing, the comparison is between Sharesies' own plans rather than between providers.
The full three-way comparison
Enter what you're investing and how often, and see all three platforms side by side - which is cheapest at your level, and which plan within that platform.
The Sharesies figures assume you're using auto-invest if you invest regularly. If you're not, your fees will be higher than shown, because the plan limits are lower.
Already picked a platform? Pick the right plan
Choosing a provider is one decision; choosing the right plan within it is another, and it's the one people get wrong.
Sharesies and Kernel both offer tiers, and the cheapest tier isn't always the cheapest outcome.
Which Sharesies pricing plan is best for me?
Compares all four plans on what you invest and where. Converts everything to New Zealand dollars, and gives your transaction and FX fees as a percentage of what you've invested, so you can add your fund's fees on top and see your true total.
It is a challenge to calculate how much you will pay in transaction fees when you are originally investing in New Zealand dollars, charged in international dollars, and paying fees in New Zealand dollars.
Thankfully I have done the automation for you. I have made a calculator that lets you compare how much you will be charged under each Sharesies pricing plan based on how much you are investing and where. And the great thing is the calculator converts all the results to New Zealand dollars, so you know exactly how much you will be charged in your local currency.
With this calculator, you can easily see which pricing plan is best for you.
For the exchange rate, the calculator assumes the most recent exchange rate. Since future exchange rate is unknown, it has to assume something, so the current rate is as good as any.
The calculator assumes if you are investing regularly that you are using Sharesies auto invest function. If you are not using that function, the fees may be higher due to lower plan limits.
Also note, that this calculator is only looking at and comparing transaction (or plan) and foreign exchange fees. It is not a total fees calculator. You will be charged other fees when you invest that need to be considered. However, those fees are the same regardless of which plan you go for. For example, fees from the ETF fund you are investing in or buy and sell (spread) fees from the fund you are investing in. So ensure you add these fees. I have made it easy for you to add additional fees by using both a dollar amount and a percentage for the results.
So do consider all fees as part of your consideration in deciding which platform to invest in. But for the purposes of this calculator, because other fees are the same regardless of plan, they don’t aid with the decision on which pricing plan to choose.
But this calculator is assuming you have done all that homework and decided on Sharesies but are just unsure of the best plan for you.
So if you want to know which Sharesies pricing plan is best for you and how much your transaction fees will be with each Sharesies plan, this calculator is for you.
You can read more about the pricing plans and the calculator here.
Some of the results surprise people. Investing $10,000 a month doesn't automatically make the $15 plan the right one, even though it covers up to $10,000 of investing.
Which Kernel Wealth pricing plan is best for me?
The same job for Kernel's tiers. US ETFs and shares only. This calculator, like the Sharesies one above, lets you see which Kernel pricing plan is best for you if you are wanting to invest in US ETF’s or shares.
You can find more on Kernel’s offerings here.
How much will I pay in fees with Hatch?
Like Sharesies, Hatch’s fees are a combination of percentages and dollar amounts. And the dollar amounts are in US dollars. It requires quite a bit of arithmetic gymnastics just to figure out how much you are paying in fees. So I have provided a calculator that shows how much you are paying in fees per year in New Zealand dollars, and also as a percentage of your total contributions.
Unlike Kernel and Sharesies, Hatch has just the one pricing structure. No multiple pricing plans. $3 USD flat fee for buying into an ETF fund or up to 300 shares. If buying more than 300 shares, you will be charged an additional 1c USD for each additional share above 300. You will also be charged a 0.50% foreign exchange rate fee each time you invest or sell. There are of course the fees from the funds you are investing in too. Plus some small additional fees if applicable, such as transfer fees or ADR fees, which you can find out about here.
Like Kernel, Hatch only offer US based ETF and shares.
For more on how Hatch compares, you can read this article here, or use the two comparison calculators at the top of the page.
Fees are the easy part to compare — and not the whole decision
Fees are the most visible difference between platforms and the easiest to put a number on, which is exactly why they get more attention than they deserve on their own.
Also worth weighing:
What you can actually buy. Kernel and Hatch are US-only. Sharesies covers NZ, ASX and US.
The fund's own fee, which is usually larger. Platform fees are cents in the dollar; a managed fund's annual fee is often a multiple of that. The investment fund provider comparison works out which provider is cheapest for what you're investing — a different question from which platform, and often a more expensive one to get wrong.
Tax treatment. Whether something is a PIE, and how FIF applies, can move the answer more than the fees do. Two of the calculators on the investing page cover that.
Features — dividend reinvestment, auto-invest, automatic rebalancing, reporting at tax time.
Security, usability and support, none of which show up in a fee comparison.
Fees are where I'd start, not where I'd finish.
Not sure which suits you?
Platform choice is usually a smaller decision than what you put in it, and how it's taxed. If you'd like to talk the whole picture through with an independent adviser who isn't paid by any of them, get in touch for a free 30 minute chat.
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