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Betashares Direct - Fee Free Investing on ASX-Listed ETFs @ Betashares

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Betashares Direct - Fee Free Investing on ASX-Listed ETFs @ Betashares
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LZCS on 07/11/2023 - 14:20 betashares.com.au (2705 clicks)
Last edited 08/11/2023 - 09:32 by 2 other users

Apparently no fees, no brokerage, own Betashares platform for all Betashares shares and all ASX EtfS

Join the waitlist

Copied from the website:

What are the fees and costs for using Betashares Direct?

Betashares Direct aims to keep your costs low, to help you maximise your investment returns over the long-term.

No brokerage fees apply for investing in, or selling, ETFs using Betashares Direct.
‍
If you decide to automate your investing using an AutoPilot Portfolio (pre-built portfolios or custom portfolios), low monthly portfolio fees apply. These portfolio fees don't apply to an AutoPilot custom portfolio with a single Betashares ETF.
‍
Interest income received by Betashares on the cash balance in your Cash Wallet is charged as a Cash Administration Fee, however, this fee is not directly deducted from your Betashares Direct account. No minimum cash balance applies to your Cash Wallet.
‍
No other account or transaction fees apply to your Betashares Direct account.
‍
Consistent with Betashares philosophy and focus on helping clients build long term wealth, Betashares Direct is subject to a fair use policy, to ensure the platform is not used in an excessive manner.

For more information on the above fees and costs, please refer to the Product Disclosure Statement and Financial Services Guide

Do platform fees apply to your individual ETF holdings on Betashares Direct?

No platform fees apply to individual ETFs held in your Betashares Direct account (i.e the ETFs held outside an AutoPilot Portfolio).
‍
Please note that interest income received by Betashares on the cash balance in your Cash Wallet is currently retained by Betashares as a Cash Administration Fee. This fee is not directly deducted from your Betashares Direct account. No minimum cash balance applies to your Cash Wallet.

For more information on the above fees and costs, please refer to the Product Disclosure Statement and Financial Services Guide

Financial Exchange Traded Fund Investment

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Comments

  • GreenLego on 07/11/2023 - 14:25
    +1

    It's only for ETFs and not shares?

    • Malik Nasser on 07/11/2023 - 20:21

      This is smart of Betashares, and is also beneficial for small investors (as no brokerage).
      Betashares are the creator and manager of their own ETF's, so they receive management fees based on funds under management.
      As long as you plan to hold their ETF's long term, then this is fine. You do lose some flexibility, as you can only purchase their ETF's (not ETF's from other providers, such as Vanguard, iShares, VanEck, State Street, etc…).
      And no you cannot purchase individual shares (Betashares are not doing this out of the goodness of their hearts. They have a financial incentive here, which also happens to align with investors in this specific circumstance).

      • donotuse on 07/11/2023 - 20:40
        +3

        if understand correctly, it's not limited to Betashares ETFs. you can also trade ASX-listed ETFs from Vanguard, iShares, VanEck, State Street, etc on Betashares Direct.

        • Malik Nasser on 07/11/2023 - 20:43
          +1

          Yes you are totally correct. My bad.
          As per their website:

          Invest in any ETF traded on the ASX - whether from Betashares or other ETF managers

  • currentfad on 07/11/2023 - 14:27
    +15

    Interesting, joined the waitlist. Not CHESS sponsored btw.

    Also as above it seems limited to ASX ETFs.

    • tightm8 on 07/11/2023 - 14:31
      +20

      Chess sponsorship obsession in this country is amazing.

      Almost everywhere in the world, custodial holdings are a thing and normal.

      But my opinion only, dyor.

      • check on 07/11/2023 - 14:51
        +30

        Feels more secure to have a Chess holding, rather than some commercial entity having custody of you holdings.

        • sangohan on 07/11/2023 - 14:54
          +5

          it's a reason why CHESS sponsorship brokers don't offer free brokerage. I suspect there's some administrative overhead they're shedding with a custodian model - including trading that happens internally between their own accounts?

          The only problem i have with custodian model is if the broker does something bad and goes broke, it will take time to sort out the ownership stakes of all users of the platform, so your shares gets locked up in the mean time.

          • sssx on 13/11/2023 - 22:32
            -1

            @sangohan: and if they didn't "do the accounting" well enough, it may be hard/impossible to figure out who should own what

        • SBOB on 07/11/2023 - 14:55
          +4

          seems less important when the custody holding it is also the custody holding the underlying assets within the ETF though :)

        • izkai67 on 25/11/2023 - 10:04
          +1

          Your super is not chess sponsor

      • Kustard King on 07/11/2023 - 15:32
        +7

        We have been conditioned to have CHESS in Australia. Plus, you can get trading platforms with very low trading fees and still have Chess sponsorship. If you have the choice, why not have it?

      • PvsNP on 07/11/2023 - 15:44
        +4

        I am amazed that no one asks for a stock certificate :D

      • matt_will_fix_it on 07/11/2023 - 16:31
        +19

        By been CHESS sponsored it means you can take your investments to another platform in the future without having to sell and re-buy.

        If Betashares increase their fees in future and you want to move to another provider, lack of CHESS sponsorship means you'll need to sell and incur capital gains tax.

        Seems like a large downside to me.

        • BargainBogan99 on 07/11/2023 - 16:43
          +4

          People seem to gloss over/downplay the in-specie transfer point.

        • Kustard King on 07/11/2023 - 16:54

          I wasn't aware of that, but it does make sense if you're technically having to transfer over to your name.

        • Charlie Dont Surf on 07/11/2023 - 17:36
          +6

          I was with Superhero for a little while, they have a custodian structure, and I was able to transfer my ASX ETFs to Stake without needing to sell them.

          • tightm8 on 08/11/2023 - 10:18

            @Charlie Dont Surf: Thank you.

            Again, the obsession of Chess in this country astounds me.

            • fredblogs on 20/11/2023 - 12:17

              @tightm8: If your custodian goes broke, are you guaranteed your shares?

        • barghunt1 on 07/11/2023 - 19:05
          +3

          From the faqs on the website:

          https://www.betashares.com.au/direct/faq

          Can I transfer my ETFs from my existing broker to Betashares Direct?
          The ability to transfer ETFs from and to another broker will be made available soon. If you have registered for the waitlist you’ll be amongst the first to know when this feature is made available.

        • akafinal on 08/11/2023 - 10:15

          Same as @Charlie Dont Surf. I transferred from Superhero to Stake without having to sell anything.

        • izkai67 on 25/11/2023 - 10:05

          I do that all the time with superhero who is not chess sponsor

      • bulletbill88 on 08/11/2023 - 07:20

        Tax time much easier with Superhero as well. With individual CHESS holding having to log into computershare or Link for each individual holding to get the tax statements I found to be a real pain.

        • dpk on 04/04/2024 - 07:31

          Use sharesight

    • life is suffering on 07/11/2023 - 16:09
      +4

      CHESS FTW

    • JTR on 15/11/2023 - 16:46

      Keep in mind that the ASX has long-term plans to introduce some other system to replace CHESS sponsored. When and what this means I do not know but it is something to at least have in the back of your mind if CHESS is important to you.

  • Aureus on 07/11/2023 - 14:31
    +3

    Pretty sure this is only for ETFs, not all ASX shares.

    Betashares Direct currently offers access to the following investment options:
    • Any ETF traded on the ASX or Cboe Australia with zero brokerage
    • AutoPilot - automated investing allowing you to:
    • set up recurring investments into one or more ETFs of your choosing;
    • invest in a range of professionally constructed pre-built portfolios to suit different risk/return profiles and investment strategies, or
    • build your own custom ETF portfolio (up to a maximum 10 ETFs) to suit your own goals and financial circumstances.

    It is also custodian model. Might as well just go with Superhero and get free ETF buys and cheap brokerage IMO.

    • Jacko1235 on 07/11/2023 - 15:09
      +1

      Agreed, I'd use Superhero for free buys of all ETFs as they are the same ownership model.

      • barghunt1 on 07/11/2023 - 19:19
        +2

        Superhero minimum purchase is $100. Betashares direct is $10 (excluding auto direct) plus they offer fractional investing.

      • SlickMick on 08/11/2023 - 09:56

        hmmm. Held by the product manager vs held by a little service provider in a highly competitive field. I don't consider that the same.

        Scenarios:
        Betashares goes broke: end game - there are no survivors.
        Superhero goes broke: you: try to recover your investments from the ashes; everyone else: "Who was Superhero?"

      • Aureus on 07/11/2023 - 17:27
        +1

        Maybe read my post again?

        Might as well just go with Superhero and get free ETF buys

        • SydBoy on 07/11/2023 - 17:32

          Your post don't say that people need to PAY $$$$$ to sell so it is not better than betashare and it is not better to go with superhero who charge to sell ETF ….. While this one let you buy and sell for free so this is better… !

          Also, superhero is not cheap brokerage, Stake is cheap brokerage of $3 with CHESS holdings…so far better for share trading then superhero.. !

          • Aureus on 07/11/2023 - 17:37

            @SydBoy: Because I didn't want my post to be huge, but I wasn't spreading misinformation.

            $5 is cheap as. Stake is better, but if you are someone who mostly buys ETFs and does DCA then superhero is better.

            It is very useful to be able to liquidate ETFs to buy stocks when you see opportunities in the market. This service will not allow that. If you only want to buy ETFs, then this service is pretty much perfect.

          • Malik Nasser on 07/11/2023 - 20:27
            +1

            @SydBoy: Stake is $3 to buy and $3 to sell, so $6 for total round trip transaction.
            Superhero is $5 to sell only, so $1 cheaper in total than Stake for round trip transaction (for ETF's only).
            Also:

            Betashares Direct is subject to a fair use policy

            • SydBoy on 07/11/2023 - 20:34

              @Malik Nasser: So what is round trip transaction cost for betashare direct?

              • Malik Nasser on 07/11/2023 - 20:36

                @SydBoy: It would be $0, just dont abuse the system by trading on it, otherwise the above "Betashares Direct is subject to a fair use policy" would apply
                (clarification: trading meaning 'day trading' or high frequency trading)

                • SydBoy on 07/11/2023 - 21:42
                  +1

                  @Malik Nasser: Glad you know which platform provides value for money lowest cost of round trip transaction 😁

            • SlickMick on 08/11/2023 - 10:01
              +4

              @Malik Nasser: Superhero is far cheaper than Stake for ETFs in anyone's use case. Who sells ETFs as frequently as they buy them?

  • SBOB on 07/11/2023 - 14:39
    +8

    for the regular DCA'er, apart from the 'auto pilot' part, not seeing much benefit over someone like CMC market with no fees for sub $1k buys

    • countmein on 07/11/2023 - 15:32
      +2

      Too lazy to switch from Stake but i second CMC for no fees for 1k buys

      • BargainBogan99 on 07/11/2023 - 16:44
        +1

        Same. I can cop the $3 on 1k for stake rsther than have another platform.

        But then i havent looked at cmc…maybe it has just as good of an app?

        • countmein on 07/11/2023 - 19:00

          Im still have an old goodie NAB account so UI/UX app not so much important to me. Switching broker is not that hassle but having DRP on some of ETFs is painful - not only the DRP stopped (have to re opt in manually) but also some residual balance not paid until you ask (realised after 1.5 years).
          I guess its an issue with the registry

    • Charlie Dont Surf on 07/11/2023 - 16:12
      +1

      The CMC offer is a good one, and of course it doesn't just apply to ETFs. I like their platform/website UI too - quite informative. Full CHESS sponsorship too for those who regard this as important.

      Obviously, haven't seen what this platform looks like, but will probably sign up and take a look. Selling part/all of an ETF balance will also be free, compared with $11 at CMC. Fee-free sales are useful if you want to rebalance or move into another market completely. Maybe some other small advantages with the Betashares offer for some cohorts of investors. But you're right about CMC.

    • virtualds on 07/11/2023 - 16:17
      +3

      CMC is good except you cannot instantly deposit money. The bank transaction takes over night to deposit money in the CMC account.

      • SBOB on 07/11/2023 - 16:20
        +2

        yeah, that's my only issue with them for my weekly buys.
        Transferring on one day and then needing to remember a day or 2 later to login to perform the transaction.

        Does have some small side benefit of removing any temptation of FOMO buys for any transient meme stocks etc though :)

      • macr0hard on 24/11/2023 - 09:07

        I have a Macquarie bank account linked to it and it’s usually instantly except for when they had an issue earlier this year. But I only usually do only $1k though, not sure if that makes a difference

      • PvsNP on 07/11/2023 - 17:18
        +1

        I think it's $1000 per day.

        First buy order processed on any trading day, up to the value of $1,000 per stock

        $0

        Second and each subsequent buy order processed on any trading day, up to the value of $1,000 per stock

        OR

        Buy orders exceeding $1,000 per stock

        $11 or 0.10%

        What happens if I place two orders under $1,000 on the same stock on the same trading day?
        $0 brokerage will be applied to the first buy order processed. Your second order, and any additional buy orders that same trading day, will be charged $11 brokerage.

        Don’t forget: If you place a buy order after market close, it won’t be processed by CMC Markets until the next trading day when markets open. This means your after-market order will become your first buy order for the day and

        • SydBoy on 07/11/2023 - 17:38

          Agree, just read the term and it is $1,000 per day but that is nothing compared to what you can buy and sell on betashare every day …also, CMC charges if you sell ETF while this one doesn't.. !

          So basically you can get in and out same day without brokerage…if I am not wrong.. !

          I am waiting for access and hope they give live price free to make it work.. !

        • SBOB on 07/11/2023 - 18:02

          I think it's $1000 per day.

          per stock/etf

          So if you're DCA'ing things like VAS/VGS etc etc there's nothing stopping you doing $1k of each a day for example

    • smartblaa on 08/11/2023 - 20:42

      I like the set and forget DCA, autopilot aspect of this. Are there other brokers that do similar?

    • fredblogs on 08/12/2023 - 19:47

      what about 10k

  • alikazi on 07/11/2023 - 15:22

    Is there a minimum purchase requirement for each ETF? Wouldn't be surprised if minimum purchase is $500 per ETF.

    Edit: No minimum purchase amount or initial deposit required, except for AutoPilot portfolio which requires $500 initial deposit and recurring $100 deposits.

    • PvsNP on 07/11/2023 - 17:23
      +1

      This is an ASX thing.

      The Australian Securities Exchange (ASX) requires a minimum investment of A$500 (excluding brokerage) when purchasing shares in any ASX-listed security for the first time. This is known as the 'Minimum Marketable Parcel' (MMP) of shares.

    • barghunt1 on 07/11/2023 - 19:39

      The minimum buy order is $10 excluding auto invest. It’s mentioned in the fractional investing part of the pds.

  • frkino on 07/11/2023 - 15:24

    It's not exactly no fees, on the website:
    Betashares Direct minimises costs to maximise your investment returns. Invest in any ETF with zero brokerage and no account fees*.

    and then:
    *Cash administration fees may apply. Refer to the FAQs for more information.

    should conduct own research

    • Aureus on 07/11/2023 - 15:29
      +1

      Betashares earns interest on cash left in the account. There is no direct fee to you.

    • muwu on 07/11/2023 - 16:23
      +5

      Long-term investors are probably keeping little to nil cash in their account and have transfers from a high interest savings account between buys (at least true for me).

      I hold at least a bit of cynicism about using a corporate platform who have their own listed products to do my brokering. I expect to pay for it somehow. If there are no listed fees, I'll start to expect their might be some indirect costs like a buy/sell spread, or possibly a slightly different tax treatment in certain cases. IMO 🤷🏼‍♂️

      When you can pay a pittance (~$10-20) to run an account with your own broker, take the CHESS on offer and manage your portfolio via the share registry, and eventually deduct the brokerage cost by adding it to your cost base, I feel you're only penny pinching if you migrate over to "brokerage-free" option.

      I believe Robin Hood in the US and the GameStop saga are good lessons to take heed (not directly relevant to Aus, however).

      • Malik Nasser on 07/11/2023 - 20:32

        Betashares manage these ETF's, so they receive a management fee based on fund under management.
        This is an incentive to get more people to buy their ETF's.
        It is somewhat of a win-win for all parties involved. You get free brokerage, and they receive more in management fees due to managing more money.

  • Jessie Ryder on 07/11/2023 - 16:34
    -1

    No Chess, no deal

    • IIGnomeII on 07/11/2023 - 16:38
      +1

      For ETFs I wouldn't worry, for single company shares it makes sense.

  • anti-hero on 07/11/2023 - 16:46
    +3

    Vanguard has similar direct invest, you can try. Vanguard ETF management fees are lower than bettashares

    • Kustard King on 07/11/2023 - 16:58

      that depends on the ETF. Some are higher, some are lower.

    • Aureus on 07/11/2023 - 17:42
      -1

      Isn't the Vanguard version considered a managed fund, so potentially worse for tax?

      • muwu on 07/11/2023 - 22:09
        +1

        Vanguard have both managed and index products, I'm sure the commenter was referring to index ones (more popular)

        • Aureus on 07/11/2023 - 22:19

          I can only see one direct investment option. Vanguard Personal Investor. Is there another direct investment option?

          • muwu on 07/11/2023 - 22:22

            @Aureus: Hmm, I think our wires are crossed, might be thinking differently. Suggest reading up on the platform and the products separately and making sense of it that way.

            • Aureus on 07/11/2023 - 22:26

              @muwu: My point was that it looks like the betashares offering is basically a broker, where you can only get ETFs. For tax purposes it is the same as signing up to Stake and buying ETFs.

              Vanguards equivalent is a managed fund. So it is worth considering that even if it is lower fees, it may have worse returns due to tax implications of being a managed fund.

  • evgpek on 07/11/2023 - 16:57

    Which EFTs are the best?

    • Kustard King on 07/11/2023 - 17:01
      +1

      You're going to open up a can of worms here.

      Keep it simple, and do it often.

      Either:
      AUS 40% + Global 60% (with mostly US) Eg. VAS + VGS (or similar)

      Or

      Buy an all in one ETF - DHHF (or similar)

      • evgpek on 07/11/2023 - 17:02

        Thank you 😅

      • Mokr on 07/11/2023 - 18:38

        True but what is the five year performance lol

        • Malik Nasser on 07/11/2023 - 20:34

          Five year performance? Future performance or historical performance?
          Give me a second to whip out my crystal ball…

    • PvsNP on 07/11/2023 - 17:29

      The one that Warren Buffet bought! 😂

  • Mrgreenz on 07/11/2023 - 17:08
    +1

    If you go custodial does that mean you don't have to deal with computershare?

  • Uncle Leo on 07/11/2023 - 18:04
    +1

    Vanguard have been offering a very similar deal for years and Vanguards fees are lower.

    • SydBoy on 07/11/2023 - 18:16
      -1

      this one has no fees… while vanguard charges you fee .. !

  • Uncle Leo on 07/11/2023 - 18:25
    +1

    Betashares charge a management fee on your etf holding, you'll find that all ETF providers charge a management fee. Betashares offers zero brokerage as does Vanguard.

    So the difference is in the management fees, Vanguards are lower in comparison from my experience

    • fattymattyd on 07/11/2023 - 20:01
      +1

      Interesting, I've typically found Betashares' fees to be slightly lower for the comparable ETFs that I've checked.

    • SydBoy on 07/11/2023 - 20:19

      Every ETF has management fees and it is charged on the product whether you buy ETF through superhero, CMC, stake, commsuck or betashare direct… !

      So completely irrelevant comment.

      The vanguard platform you are talking about does charge additional holding fees which is not the case for betashare direct… ! Read the PDS.

  • itsfree on 08/11/2023 - 07:49

    I have about $55k in Stockspot (Topaz) – do you guys think it is worth replicating my portfolio and directly investing into the ETFs to avoid their fees? Is the automatic rebalancing worth Stockspot's fee?

    • SydBoy on 08/11/2023 - 14:11

      Depends how much stockpot charge for it… ! Is it 0.05% or 2% ?

      • itsfree on 08/11/2023 - 14:17

        It's 0.66% PA for balances above $50k, which is the Gold tier:

        Custom portfolio matched to your goals
        24/7 portfolio access
        Preview app and dashboard
        Advice via phone and email
        Annual strategy review
        Access to sustainable investing
        Zero brokerage, withdrawal, or transaction fees
        Annual tax statement and reports
        Automatic dividend reinvestment
        Automatic rebalancing
        Custom rebalancing settings for tax efficiency
        Access to Stockspot Themes

        • SydBoy on 08/11/2023 - 14:54
          +1

          If you want to compare features between two then best to wait and let betashare products launched and then instead of transferring try creating similar portfolio with betashare (using small amount) and observe the performance, report etc and then decide which works better for your circumstances.. in my opinion.

          Important is CHESS sponsorship because betashare works on custodian model and I am not sure if you are okay with that model or not.

  • Uncle Leo on 08/11/2023 - 08:03

    No account fee on Vanguard products 1
    No account fee on holdings in Vanguard managed funds and Vanguard ETFs.

    0.10% p.a. account fee on ASX direct shares
    An account fee of 0.10% p.a. applies to the value of any investments you have in ASX direct shares.2

    • SydBoy on 08/11/2023 - 17:06

      https://www.vanguard.com.au/personal/invest-with-us/fees-and…

      It clearly says so read before making comments. There is fee for Vanguard Products as well… go on the link and check yourself … !

      IT says: * Vanguard ETF sale trades incur a $9 flat brokerage fee.

      So Vanguard will charge to sell ETF … !

      Those who love CHESS then Stake ASX is the cheapest product in the market to buy & sell ETF.. !! (Up to 30k value i think as i believe there is different fees above 30k)…

      Only Betashare Direct at the moment based on their document seems to charge no fees … unless you can provide evidence from their PDS..> !

    • SydBoy on 08/11/2023 - 17:15

      here is the copy of PDS for betashare direct… it will help you compare … ! (Betashare autopilot option has fees and they are provided in the PDS).

      https://public-files.wealth.betashares.com.au/legal/product-…

  • fairtrading on 08/11/2023 - 08:30

    Not sure how much of a concern it is, but the maximum fees allowed for in the PDS https://links.betashares.com.au/direct-pds.pdf are eye watering. For example, “a maximum transaction fee of $500 or 100% of the consideration payable or receivable (whichever is greater) in respect of a transaction”.

    • SydBoy on 08/11/2023 - 17:14

      Go to section 4.1 on page 16 to check fees.. !

  • f4te on 08/11/2023 - 15:56

    Be aware that:

    The Betashares Direct investing platform is currently available for Apple devices (iOS), with Android and Web applications coming soon.

  • Brub on 06/12/2023 - 22:18

    Has anyone got their invite code yet?

    • tobi3421 on 07/12/2023 - 13:48
      +1

      I just got mine this morning

    • SlickMick on 08/12/2023 - 10:19

      Yeah mine came yesterday… but I'm waiting for them to open up for SMSF

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