It doesn’t seem a likely leap, that Aussies who’ve never invested before and potentially can’t even afford a house, would start off investing through a fintech directly into the US market.
But that’s exactly the funnel Matt Leibowitz has created with his new platform Stake.
It’s no longer a world where it is enough to have your money sitting, possibly losing value, in a savings account.
That’s why entrepreneurs like Matt are changing things.
“I worked in Chicago for three years and got to see how big, and deep the US market is, and how much opportunity Australians were missing out on. I wanted to bring the US to Australia and change that,” Matt says.
“When I lived there I spoke to a guy who traded Apple stocks, he told me that there was twice as much money traded through that one stock in a day than goes through the entire Australian stock exchange in the same period.”
So firstly, what is Stake?
Matt tells us that Stake gives Australians direct, real-time access to the $31 trillion US stock market at $0 brokerage (that’s the term used for trading stocks).
“It’s only $50 for users fund their account and the minimum investment order amount you can make to buy shares (even partial shares) using Stake is USD $10. The maximum you can place in one trade is USD $500,000, but can invest as much as you like.” Matt says.
Who is using it?
A combination of first-time investors (25%) and seasoned pros (75%) are downloading Stake.
“Our market is the young professionals who want to get into the market and their money working for them. They understand the US companies and themes, like tech, and want to access these opportunities, so it makes sense to be able to go to the US,” Matt says.
“More seasoned investors also want to invest in these opportunities at low cost.”
Matt says first timers look at big companies like Apple, Tesla, Berkshire Hathaway (investing guru Warren Buffet’s company), while others use it to invest in US exchange traded funds (these give you exposure to the whole stock market in one stock!).
Since launching in August 2017, more than $100 million (US$75 million) has been transacted on Stake, with more than 47,000 trades and 14,000 users taking advantage of low-cost, simple, and direct access to the US market.
Will it make me rich?
Like anything to do with investing, it will likely take some time before you get rich.
Matt says many people using his platform are using it to help achieve financial independence.
“People use Stake who are interested in making their money work for them. We offer the cheapest way to invest in the US market so people who are cost-sensitive will use this as a way to get into the US,” Matt says.
“For those with less experience, they can get into the financial markets and get going in just a few clicks. Remember, every expert also once started as a novice.”
How do I get it?
Stake is available to download on the App store, Google Play or at hellostake.com