Online investment opportunities have changed the dynamics of investment for individual investors. People invest online and eventually save the charges a broker or a financial advisor may charge. Many user-friendly platforms allow their users to invest in the stock market with a little amount of investment which is a great opportunity for young investors. Sharesies and Hatch are an example of such platforms.
What is Sharesies?
Business startup incubators have given birth to several unique yet simple startups which prove to be extremely beneficial. Sharesies is also a product of a startup incubator that provides a platform for the investors to invest without any minimum requirement i.e. people can invest as little as 1 cent if they are low on resources. Young people can learn quickly from failure as well as success and as the process of investment is a lengthy one they will have enough time to plan and strategize accordingly. Sharesies is a platform for such individuals who have the ability but they lack resources. The investment fee is 1.5/month only for those who have an investment balance of $50 or more. They manage investor’s portfolios which can be made through their website where they offer a wide range of companies for investors to invest in.
What is Hatch?
Hatch is a platform based in Wellington, New Zealand. It is a financial space where people can make their investment portfolios and buy shares or fractions of shares from a wide variety of 750+ ETFs of US-listed companies. There is no minimum investment required, however, users will have to pay $3 brokerage fee on a single transaction. Tax obligations are taken care of at Hatch which requires a fee of 0.50 for a single account every year. Hatch is a user-friendly website with a range of more than 3000 investment options in the United States.
Differences between Hatch and Sharesies?
Markets – Sharesies is a platform through which investors can buy the listed Exchange-traded funds in NZX whereas Hatch is a platform through which the ETFs listed on the US market can be bought.
Investment – Sharesies has no minimum requirement of investment with a brokerage fee starting from $1.50 while the brokerage fee for Hatch starts from $3 for a fraction of ETF so no individual would want to invest 1 cent there although it doesn’t have any minimum investment requirement.
Currency – In Sharesies the investor only has to deal with NZD whereas in Hatch they will have to convert their currency to USD to directly deal with the US market for which they charge the user.
Exchange-traded funds – Hatch provides a wider range of ETF comprising of more than 750 Exchange Traded Funds as compared to Sharesies which provide only 32 ETFs.
Which is right for you?
After the comparison of both the financial service platforms it can be concluded that both of them are great opportunities for investors but ultimately it really comes down to what you are trying to achieve.
If you are just starting out then Sharesies be the best especially if you have a bootstrapped budget. Hatch would be great for slightly experienced investors who are planning to invest greater amounts less often.
Check out Hatch and get $20 in your account when you deposit $100 in your account. You can do so by clicking HERE.
Check our Sharesies. Get $5 in your account just by signing up to the platform. You can do that by clicking HERE.