What Is Stake and How Does It Work?
Stake is an Australian fintech company that provides retail investors with access to US stock markets — primarily the NYSE and NASDAQ — via a mobile app. It launched in Australia in 2017. US shares are held in a DriveWealth LLC brokerage account (a US SEC-regulated broker) in your name, providing direct ownership of fractional or whole shares.
Stake Fees: Zero Brokerage and the AUD/USD Exchange Rate
Stake charges zero brokerage on US stock trades. However, when you deposit AUD to fund US stock purchases, Stake converts your AUD to USD at a rate that includes a spread (typically 0.70%). For ASX stocks, Stake charges a flat $3 brokerage per trade. Stake also offers a premium 'Stake Black' subscription ($9/month or $90/year) with benefits including lower FX rates.
Tax Implications for Australians Using Stake
Australian residents investing in US stocks through Stake have several tax obligations. The US imposes a 15% withholding tax on dividends paid to Australian investors (reduced from 30% under the US-Australia tax treaty). FX gains and losses are also taxable in Australia. Stake provides an annual tax report, but many investors benefit from working with a tax agent familiar with foreign investment taxation.
Stake vs Interactive Brokers: Which Is Better for US Stocks?
Interactive Brokers (IBKR) is the main alternative for Australians wanting US stock access. IBKR offers very low commissions and competitive currency conversion spreads, but is significantly more complex. For most retail Australian investors, Stake's simplicity makes it a good choice. Active or large-volume US traders should also evaluate Interactive Brokers.
Stake 2025 Verdict
Stake is a solid platform for Australians who specifically want direct access to US stocks. The zero-brokerage model with a 0.70% FX spread is transparent and competitive. For investors focused primarily on ASX ETFs and index investing, Pearler or SelfWealth are likely better choices.
Rating: 4/5 — Excellent for US stock access; good but not best-in-class for ASX investing.