Launched in February 2020, Stake UK could be considered a relative newcomer when it comes to investment opportunities.
In this article, we’re going to examine just what this company has to offer and whether it’s worth considering alongside some of the other popular investment companies out there.
We’re going to be looking at the Stake investment app, the types of accounts, and everything else that you need to know. Let’s get started.
Table of Contents
Company Overview Stake UK
Stake is an Australian-owned company. Founded in Sydney, those being the company are Jon Abitz, Matthew Leibowitz, and Dan Silver. Stake was formed with the aim of increasing accessibility to investing so that everyone had the opportunity to trade US stocks and ETFs (Exchanged Traded Funds).Â
As well as offering its services in Australia, the company has now expanded and it serves residents in New Zealand, Brazil, and the UK.
Stake UK came into being during 2020. Those in the UK wishing to use the service can do so by using the Stake investment app. Every trade that’s made is in US dollars which means that there are foreign exchange fees to consider. The big tick in the box for Stake UK though is the fact that trades on all US stocks and shares, and EFTs, are commission-free.
Another feature offered by Stake UK is a free share. To claim this, all that you need to do is sign up via the Stake investment app and make sure that you fund your account with at least $50 within the first 24 hours.Â
Once this is done, you’re invited to play a game where you spin a wheel. Wherever the wheel stops dictates the share that you’ll receive. At present these shares are in either Nike, GoPro or DropBox. There is also the chance to win a mystery share.
So, a free share just for getting started as well as zero commission. Not bad! Let’s take a look at what else Stake UK has to offer.Â
Types of accounts with Stake UK
If you’ve ever explored any other trading accounts that allow you to trade on the US markets, you’ll notice something great about Stake UK: the product range is immense.
Whereas other companies appear slightly limited, the Stake investment app gives you access to over 6,000 US stocks and ETFs. The downside here is that the US is the only market that Stake UK gives you access to. While there is still plenty to explore, the lack of UK investments may be a turn-off for some investors.
Stake UK offers two different accounts that you can use to start trading, so let’s take a look at these now:
Stake UK Standard Account
If you’re looking for free access to trading stocks and shares and ETFs then the Standard Account offered by Stake UK is a great option. The amount that this free account offers really makes it stand out from the crowd as you’d expect to have to pay to access the number of features that there are.Â
So, what do you get? The Standard Account gives you unlimited commission-free trading. This applies to US stocks and shares, ETFs, fractional shares, and advanced order types. We’re huge fans of fractional shares.Â
These are also offered by the likes of eToro and Freetrade and allow you to buy just part of a share. This means that it’s affordable for practically anyone to start trading shares in some real giant companies.
Stake UK Black Account
The Stake UK Black Account is the premium account here. Just like anything else that’s labelled ‘premium’ there is a cost to use this and that comes in at £9 per month. So, what extras do you get for your money? By paying £9 per month you get access to all that the standard account offers, plus:
- Advanced limit and stop order types
- Access to full financial data such as target prices and analyst ratingsÂ
- The ability to trade instantly on unsettled funds
To be honest, these extras aren’t overly useful for beginner investors. While more experienced investors may enjoy the additional insights that are offered, the £9 fee doesn’t represent great value for money.
The Stake UK Trading Experience
The trading experience all takes place on the Stake investment app. This is an app where a lot of thought has gone into its design and functionality. It’s extremely easy to navigate and find your way around.Â
With so many stocks and shares and ETFs being available, one worry could be that it’s almost impossible to find the ones that interest you. Fortunately, the Stake investment app comes with an amazing search function that allows you to search by categories such as oil, etc.
Stake UK aimed to make trading accessible to all and it certainly does this with its app. One of the main features is ‘The Wrap’. This gives customers a round-up of what’s been going on in the markets. It gives enough detail to interest experienced investors as well as being written in such a way that it’s a great help to newbies.
While buying and selling are easy on the Stake investment app, you need to be aware of the time differences. If you’re looking to trade, just bear in mind that the US market might not be open. Stake UK will execute your order as soon as the markets reopen.Â
Stake fees and charges
One of the worries of many investors is that charges and fees soon start to eat away at their profits. It doesn’t take much before fees seem to have all but wiped out any gains.
That’s why Stake UK’s commission-free trading is so attractive. There are no charges made for any US trades that are made on the platform. That being said, there are other fees that you need to be aware of.
If you make a deposit and you want funds to hit your account fast, you’ll find yourself paying a 0.5% express funding fee. There is also a $2 withdrawal fee to consider.
The big thing to be aware of here is that all trades are carried out in US dollars. That means that, when you’re funding your account, there are foreign exchange fees to consider.
To be fair to Stake UK, it has made these fees as painless as possible. Rather than charging for every trade, there is a flat 0.5% exchange fee each time that you make a deposit. At this rate, the fees are extremely competitive.
Opening a Stake account
When it comes to opening an account, there really isn’t much that needs to be said. That’s because the process is extremely simple and only takes a few minutes to complete.Â
Of course, to open your account, you’ll need to download the Stake UK investment app first. once you have this, it’s just a case of providing your details and funding your account.Â
The minimum amount you can add to your account is £50, but once you’ve transferred this, via bank transfer, you’re all set to go. Assuming that you make your deposit within 24 hours, you’ll be rewarded with the free share that we looked at earlier.
Funding your account is done via Open Banking. This sees Stake UK connecting to your bank, making transactions much quicker. If you want to avoid the exchange fees, it could be worth exploring a multi-currency account such as the one offered by Wise.
What we like
There’s a lot to like about Stake UK. It certainly delivers on its aim to make trading accessible to all. The fact that you can trade so many US stocks and shares, as well as ETFs, all commission-free is a real plus point and makes Stake hugely attractive.
We’re big fans of the Stake investing app and have found this incredibly easy to use. With over 6,000 investing options, the app needed a great search function to be able to deliver, and Stake UK has definitely delivered on this front.Â
While people can be a little wary when it comes to parting with their money online, there is reassurance in the fact that Stake UK is regulated by the Financial Conduct Authority (FCA).
What we don't like
While there are plenty of stocks and shares and ETFs to choose from, the downside is that they are limited to the US markets. Yes, there are over 6,000 options to consider, but it would still be great to allow people to explore other established, or even emerging, markets.
Something else that lets Stake UK down a little is the customer support that’s on offer. While there is a comprehensive FAQs section, it’s not overly easy to get in contact with a real human. You can send messages via the app, but don’t expect an overly fast response.
The last downside with Stake UK is its premium account. In reality, this just isn’t worth the £9 per month that’s charged. To be fair, this could easily be flipped around to be a positive as it shows just how much you get access to with the standard, free, Stake UK account.
UTG Rating 8.5 / 10
We think Stake has come a long way since we first tried it out in early 2021. The developers are clearly innovating the app and trying to create a leading product.Â
You could do a lot worse if you enjoy a mobile first trading experience and the free stock is certainly a huge draw to get yourself up and running.Â
I think next year when we re-visit this Stake will be up to a 9 or 9.5 very easily. Watch this space.
