You may have heard about SelfWealth and wondered ‘What is it?’
SelfWealth Trading is an Australian owned and operated share trading platform for Australian and US stocks and ETFs. The platform charges a flat fee of $9.50 for any trade rather than a percentage of the traded amount.
In essence, SelfWealth is a DIY Australian trading platform.
Self Wealth Trading Review
In this SelfWealth review we cover how this self-directed platform works and the type of investor it may suit.
We also compare the differences between the SelfWealth DIY style of investing with Six Park’s use of robo advice to help you choose the best strategy for your financial needs.
How does SelfWeath work?
SelfWealth is a self-directed online investing platform. This means you don’t receive personalised advice on investment choices, risk management or portfolio rebalancing.
Taking the DIY approach to investing means you’re in charge of buying, selling, researching, and rebalancing your portfolio. SelfWealth offers trading features and tools to help with this.
If you’re a member of SelfWealth Premium you can also set up a target portfolio based on the strategies of top investors. Be aware though, these types of modelling insights can create comparison anxiety and spur emotionally-driven investment decisions.
SelfWealth Premium offers a 90 day free trial period and after that, the subscription is $20 per month.
Are your investments safe with SelfWealth ?
Shares held in SelfWealth are CHESS sponsored which gives full asset protection through ASIC, ASX and OpenMarkets.
Investors legally and beneficially own the shares and receive a unique holder identification number (HIN). This means if SelfWealth goes bust you won’t lose your shares.
How do you set up a SelfWeath account?
A SelfWealth Trading account is set up via an online application form. You can sign up for an individual, company, joint, trust, or an SMSF account. 100 points of identification are required for the sign up process.
Once your trading account is approved you automatically receive a cash account with ANZ to start buying and selling shares. You can’t link SelfWealth to an existing bank account.
A flat fee of $9.50 applies to trades, regardless of the size of the trade.
Compared to other online brokers like ANZ Share Investing and Commsec, this flat fee offers a decent saving. There are no ongoing account fees or trading commissions.
SelfWealth vs Six Park
Let’s compare some of the key features of SelfWealth and Six Park to help you choose the strategy to best suit your financial goals and investing experience.
|Investment style||Robo advisor||Self-directed (DIY) investing|
|Fees||From $9.95 per month plus an average ETF management fee 0.25% of account balance.||$9.50 flat rate for each trade and $20 per month for SelfWealth Premium membership plus any management fees if using managed funds/ETFs.|
|Markets||Exchange-traded funds covering asset classes including Australian and international shares, emerging markets, global infrastructure, global property, bonds and cash yield.||US and Australian-listed shares and ETFs.|
|Reviews and rebalancing||Six Park handles portfolio rebalancing and reviews for you. Included in the single monthly fee.||DIY. You’ll need to track your investments and rebalance your own portfolio.|
|Legal ownership and asset custody||You legally and beneficially own the shares.||You legally and beneficially own the shares.|
Six Park: Robo advisor. We offer five essential investment portfolios and sustainable alternatives that are constructed using carefully selected exchange-traded funds (ETFs) and range from conservative to high-growth.
SelfWealth: Self-directed (DIY) trading. You build your portfolio with ETFs and stocks.
SelfWealth leaves all investing decisions up to you to ‘pick winners’ and handle your portfolio. If you enjoy researching assets and have the time to manage the intricacies of a portfolio this self-directed style may suit you.
On the other hand, Six Park saves you the time and energy it takes to build and maintain a well-diversified investment portfolio without the high costs. We also help you avoid emotional decisions and behavioural mistakes that can be hard to avoid even for seasoned investors.
We start by understanding your risk profile and financial goals and then recommend a pre-constructed portfolio of low-cost ETFs.
We set up your accounts, establish and rebalance your investments. Funds that accrue in your cash account from dividends and deposits you may make over time will be invested into additional shares of your suggested portfolio.
The asset allocation for our portfolios is overseen by Six Park’s Investment Advisory Committee, made up of some of Australia’s most respected financial minds. This investment committee meets at least six times a year to review global economic and political conditions, to ensure our portfolios are well-optimised for long-term risk-adjusted performance.
We communicate regularly with clients to share insights from the investment committee, performance updates, podcasts, educational articles and much more.
Six Park: From $9.95 per month plus an average ETF management fee 0.25% of the account balance.
SelfWealth: $9.50 flat rate for each trade and $20 per month for SelfWealth Premium membership.
At Six Park, our simple fees include regular trading and rebalancing, and there are no fees to deposit or withdraw funds from your account.
As an example* the total fees paid to Six Park on a portfolio with an average annual balance of $15,000 would be $156.90 or 1.046% per annum.
SelfWealth flat rate applies to any size trade. So it can be more expensive to DIY than you realise – you need to buy multiple shares and trade them and rebalance on an ongoing basis, each time incurring fees.
For example, to create a diversified portfolio similar to what you would get with Six Park, then add more funds or rebalance 1-2 times, it would cost you $130 to $208 (excluding managed fund/ETF fees if applicable).
- No investment returns assumed for illustrative purposes.
- Illustrative purposes only. Based on weighted average fees of ETFs within Six Park’s Balanced Portfolio. Excludes impact of any bid/ask spread.
- ETF management fees are incorporated in the share price of the ETF and are not actual cash out of your account (ETF fees are typically materially less than most active managed funds).
Six Park: International and Australian-listed ETFs
SelfWealth: US and Australian-listed stocks and ETFs
Six Park has handpicked ETFs for exposure to assets in the following markets:
- Australian shares
- International shares (both hedged and unhedged)
- Listed international property
- Emerging market shares
- Global infrastructure
- Australian fixed income/bond
- High-yield cash assets
SelfWealth offers exposure to US and Australian-listed shares and ETFs.
Reporting and rebalancing
Six Park: We provide regular portfolio reporting, reviews and rebalancing.
SelfWealth: It’s up to you to track your investments and rebalance your portfolio.
Rebalancing involves buying or selling investments to keep your portfolio on track with your risk tolerance and the returns you’re aiming to achieve.
Rebalancing is like a regular health check for your investments; it’s a crucial part of any smart long-term investment strategy.
A wealth of research studies have shown that rebalanced portfolios generate higher returns and with less volatility than portfolios that are allowed to drift.
With SelfWealth you have to be comfortable doing your own rebalancing and download your own reports.
At Six Park, reviews, rebalancing, and reporting are all included in your low single monthly fee. We also provide consolidated tax reporting that makes it easier for you or your accountant to file your tax return.
Legal ownership and asset custody
Six Park: You legally and beneficially own the shares.
SelfWealth: You legally and beneficially own the shares.
Unlike some other investing platforms, investors with Six Park and SelfWealth receive CHESS-sponsored shares. Investors receive a unique holder identification number (HIN). This means the investments are held in your name and your stock ownership is registered with the ASX.
Get started now with Six Park
As you can see, SelfWealth is an investment platform that best suits people who have the time and expertise to manage their own investment portfolios day-to-day.
However, using a DIY online trading platform like SelfWealth can be more costly than using a robo advisor like Six Park, especially when you consider that for a low fee you receive our expert financial advice, rebalancing and reporting.
Investing in ETFs through Six Park is an efficient, low-cost way to access a diversified portfolio designed for your risk profile.
To start your investment journey with Six Park, click the “Get started now” button. Take our personalised assessment and get your free investment recommendation now.