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Finance STAKE Review | A Decent Alternative to Robinhood?

STAKE Review | A Decent Alternative to Robinhood?

Disclaimer! This post may contain affiliate links

The UK has seen a surge in low commission or commission-free brokerage apps such as Trading 212, FreeTrade, Revolut and now STAKE has joined the club.

What is STAKE?

Stake is an online brokerage platform that has been around for a number of years and with over 100,000 clients in Australia and New Zealand, it's a well established & trusted platform.

Sign Up to Stake for a FREE STOCK

Simply sign up using the link below, fund your account within the first 24 hours and claim your free stock in GoPro, Dropbox or Nike.

Is Stake Safe & Regulated?

This platform offers the ability to invest in over 3,800+ US individual stocks and ETFs. It is regulated by the FCA and is covered under the Financial Services Compensation Scheme (FSCS) which is good for us UK investors. It also seems it covered under similar schemes in Australia & New Zealand, it's best to double-check that. Let's explore this platform further in our Stake review.

What stocks can you buy?

At the moment STAKE offers a vast selection of 3,800+ individual US stocks and ETFs, while other trading platforms like Freetrade and Trading 212 only offer a fraction of this in comparison. If you are an investor or trader who wants to focus on primarily the US market then this could be the platform for you.

How does STAKE Work?

This is a great platform for investors or traders who are looking to focus on the US stock market. This is a feature-packed platform that has a lot to offer. For us at INKMATTIC, we see the value of not having to convert back to sterling or your local currency after every trade. This helps omit the fluctuations in the daily exchange rates. Like other platforms such as Trading 212 and Freetrade, where the latter applies a 0.45% FX fee after every US trade which works out expensive and can eat into your profits if you trade regularly.

Stake App

The Stake app is well designed, clean and easy to use. It has a lot of features you would already be familiar with such as fractional shares, Limit buy and sell orders, dividends paid straight into your brokerage account we usually find them to be after than other platforms. What makes this app stand out and shine is the information it provides.

stake app

On the home screen, you can see your portfolio's performance at a glance with total returns and returns on that day which are useful to see the day to day fluctuations.

Analyzing stocks there are a lot of features not offered on other platforms at the moment. These features include candle charts, direct links to prospectus and filings, price targets, analyst ratings and recent news about the company.

When picking stocks STAKE makes it easy showing related stocks, top movers and fallers for the day, both useful and a pleasant feature for those of us who are just curious and looking for an opportunity 😁

Website

STAKE has an online platform, but at the time of writing this review, it's only available to Australian and New Zealand clients. They have said they are working to launch this for clients residing in the UK.

Stake Fees

Although this is a commission-free investing platform there are some fees to take note of when adding and withdrawing money from your brokerage account.

  • Adding funds to your STAKE account 0.5% FX fee (min$2)
  • Express Funding there is an additional fee of 0.5% FX fee (min$2) to the standard funding fee.
  • Withdrawals are $2 + 0.5% FX Fee.
  • However, ETFs are only available to those who have at least $30,000 in their account.

Adding Funds to Your Stake Account

STAKE Review

Adding funds to your account is where STAKE falls short compared to the competition. You can only add funds to your account via a bank transfer. However, they have made it rather easy by entering the amount you want to add to your account and a few taps select your bank it will then open your banking app and pre-fill all the information for you to allow the transfer. This is all done through the Open Banking API.

Unfortunately, the time it takes for STAKE to add funds to your account is rather long compared to the other brokerage platforms. The standard processing time is about 2 days and clears at 1 PM NY Time. There is an express option with an additional fee of 0.5% + spot rate (min $2), although it's not that quick it's pretty much next day at 9 am NY Time compared to the competition where some brokers already offer instant transfers and are free. Don't let this discourage you from checking out this platform, it does have its merits.

STAKE FUNDING

Hopefully, STAKE will become more competitive in this area as a lot of other brokers do offer multiple ways of funding your investment account such as Google Pay, Apple Pay or by debit card. It would be good if these options were available on this platform.

“Stake are currently working on direct card funding and are also exploring integrating Apple/Google pay options“

Account options 

The Stake Platform has a transparent fee structure with two tiers one being the free tier and the other a premium plan called “Stake Black”

Stake (Free Tier)

This is a brilliant place to start for beginners or those who have never invested before. We think this is a good starting place, which offers the essentials; limit orders, stop buy and of course, market buy. Perfect for a newbie or that long-term investor. Best of all, it's completely free.

  • Unlimited free trades
  • Fractional shares
  • Market orders
  • Advanced orders (Limit & Stop)

Stake Black (Premium Tier)

This plan is their top offering and really packs a punch for those who are looking for additional tools and features with an all in one platform for $9 a month and free until Jan 2021.

Since we have been using the Black tier we have grown to love this tier with the additional features it offers from pricing targets, analyst rating, use of unsettled funds for day trading, pro-level data to get the full picture and more platform enhancements down the road.

  • Priority access to new listings
  • Priority customer support
  • Trading on unsettled funds
  • Analyst ratings
  • Pro-level data
  • Price targets
  • GTC orders (Coming Soon)
  • Superior enhancements (Coming Soon)

Our verdict

STAKE is a well-rounded app and offers plenty of features for the retail investor. Where this app excels is with the stock universe it has over 3800+ US stocks and ETFs which is rather impressive.

This space has quickly become very competitive. The largest players with commission-free investing where STAKE challenges them and other app only brokerages. you can read our comparison; Trading 212 vs Freetrade. Even though Robinhood pulled its UK launch in July 2020 indefinitely. We think STAKE can clean up and gain market share for all those who were hoping to jump on the Robinhood train. Stake is genuinely a really good alternative to Robinhood if you're primarily focused on investing in the US market and especially tempting for those day traders and investors who buy and sell on the regular Stake Black is a compelling option to consider.

STAKE offers an easy-to-use experience and clean design. Those who are new to investing or even those who have been investing for a while will welcome this. There is a relatively higher barrier to use this platform. There is a minimum top-up of 50GBP every time you deposit money into your account. Let us know what you think about our Stake review in the comments and don't forget to use code “INKMATTIC” when you sign up to get a Free Stock in Gopro, Dropbox or Nike.

FREE STOCK In GoPro, Dropbox or Nike

Simply sign up using the link below, fund your account within the first 24 hours and claim your free stock in GoPro, Dropbox or Nike.

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