Will Stake Be The Next Investing Bait and Switch after Spaceship?

watwatwat on 30/09/2021 - 15:38
Last edited 30/09/2021 - 15:39

I think that delaying capital gains is a huge part of investing. Some people could buy an ETF and hold it for 30 years without realising any of the gains and tax except for dividends.

This is why the Spaceship change is so annoying as it forces people to sell in order to get out.

Now it sounds like it's better to be weary of smaller entrants in to the market. With Stake announcing $3 brokerage on ASX, I wonder if this can be trusted for years and years to come? If they announce an account fee or whatever else in the future, this is something that would be totally plausible considering Stake have already changed their fees for US investing. They got rid of the ability to deposit via USD and they also seem to obfuscate and slightly modify their conversion fees on deposits.

Maybe it's just better to stick with a more established player rather than get played around with cheap and ultimately annoying deals like Spaceship temporarily offered.

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Comments

  • djkelly69 on 30/09/2021 - 15:48
    +1

    Since Stake is Chess-sponsored, can't you just transfer your holdings to another broker (without any CGT events)?

    • brad1-8tsi on 01/10/2021 - 09:01

      Indeed you can simply transfer CHESS sponsored holdings from broker to broker without cost.

      Some people could buy an ETF and hold it for 30 years without realising any of the gains and tax except for dividends.

      The OP doesn't seem to realise that ETFs realise capital gains all the time and disguise them as distributions.

  • orangetrain on 30/09/2021 - 15:49

    If stocks are on CHESS, then the winning move is to transfer to a new broker.

    • watwatwat on 30/09/2021 - 15:58

      If this is the case, then sounds promising.

      But I really don't feel like Stake was ever positioned as the cheapest player in the market so after Stake implements this, maybe other brokers will reduce their prices to even lower or price match it.

      • Shadowsfury on 30/09/2021 - 16:06

        As others have said they're going to be CHESS sponsored so if you don't like them any more just transfer your shares out - no CGT triggered.

        Potentially established players can't get cost down to the level of stake since stake being a relatively new fintech won't have legacy systems to worry about.

        Plus established players (cough Commsec) won't drop to or below Stake's level as they'll have enough brand loyalty or skepticism of the new player to command a higher brokerage cost.

  • netjock on 30/09/2021 - 16:21
    +1

    With Stake announcing $3 brokerage on ASX, I wonder if this can be trusted for years and years to come?

    Anyone know what is the cost of transaction on the ASX? Only thing we know is it isn't free.

  • Dagwood-Dog on 30/09/2021 - 16:21

    Stonks.

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