- What is Brokerage?
- What Are The Types of Brokerage Fees in New Zealand?
- How Are Brokerage Fees Calculated?
- Why Use a Brokerage Calculator?
- Who Should Use a Brokerage Calculator?
- How to Use Our Brokerage Calculator?
- Is 1% Brokerage Too High?
- How to Reduce Brokerage Fees in New Zealand?
When trading stocks, forex, or derivatives in New Zealand, brokerage fees are an essential cost to consider. If you don’t factor them into your trades, they can significantly reduce your profits.
To help you make informed trading decisions, we’ve created a Brokerage Calculator—a simple tool that lets you calculate brokerage charges online before placing a trade. This helps you compare brokers and optimise your trading strategy.
But how does brokerage work? How are brokerage fees calculated? What should you expect to pay? Let’s break it all down.
What is Brokerage?
Brokerage is the fee charged by a broker for executing your buy or sell orders in the stock market. This fee varies depending on:
- The broker you use (ASB Securities, Direct Broking, Jarden, Hatch, Sharesies, etc.)
- The type of trade (share trading, forex, options, CFDs, ETFs, etc.)
- The stock exchange (NZX, ASX, NASDAQ, NYSE)
- The trade volume and frequency
At first, brokerage fees may seem small, but if you trade frequently, they add up quickly and can affect your overall profitability.
What Are The Types of Brokerage Fees in New Zealand?
Each trading segment has different brokerage fee structures. Below are the most common charges you will encounter:
Brokerage Fees (Stock Trading & CFDs)
Brokerage fees can be a flat fee per trade or a percentage of the trade value.
- ASB Securities: $15 per trade for trades up to $1,000, then 0.30% for larger trades
- Direct Broking: $29.90 per trade or 0.20% for trades above $15,000
- Sharesies: 0.50% for trades up to $3,000, then 0.10% for larger amounts
Foreign Exchange (Forex) Fees
- Most forex brokers charge a spread, which is the difference between the buy and sell price.
- Some brokers may also charge a commission per lot traded.
Exchange & Clearing Fees
- The New Zealand Stock Exchange (NZX) and Australian Stock Exchange (ASX) charge small transaction fees on trades executed on their platforms.
Currency Conversion Fees
- If you trade US or Australian stocks, your broker may charge a currency conversion fee when converting NZD to USD or AUD.
- This fee is usually between 0.40% to 1.00% per transaction.
Account & Platform Fees
- Some brokers charge monthly platform fees for advanced trading tools.
- Others may charge custody fees for holding shares in your account.
GST (Goods & Services Tax)
- Brokerage fees in New Zealand may include a 15% GST, depending on the broker and service provided.
How Are Brokerage Fees Calculated?
Brokerage fees depend on the broker, trade type, and trade volume. Here’s how they apply across different segments:
Stock Trading: Brokerage Comparison
| Broker | NZX Trading Fee | ASX Trading Fee | US Stocks |
|---|---|---|---|
| ASB Securities | $15 or 0.30% | $30 or 0.30% | Not available |
| Direct Broking | $29.90 or 0.20% | $29.90 or 0.30% | Not available |
| Hatch | Not available | Not available | 0.50% (min $3) |
| Sharesies | 0.50% (up to $3k), 0.10% (above $3k) | Not available | 0.50% (up to $3k), 0.10% (above $3k) |
For example
If you buy $5,000 worth of NZX shares and later sell them, here’s what you’d pay:
- ASB Securities: $5,000 × 0.30% = $15 brokerage per trade
- Direct Broking: $5,000 × 0.20% = $10 brokerage per trade
- Sharesies: $5,000 × 0.50% = $25 brokerage per trade
Using Direct Broking would save you $15 per trade compared to Sharesies.
Forex & CFD Trading Brokerage
Many New Zealand traders use international brokers like CMC Markets, IG Markets, and Pepperstone for forex and CFD trading. These brokers charge:
- Spreads (e.g., 0.8 pips for NZD/USD)
- Commission per lot (e.g., $3.50 per 100,000 units)
NZD/USD Forex Trade
If you buy 100,000 units of NZD/USD and the broker charges a 0.8 pip spread, your cost would be:
100,000 × 0.00008 = $8 per trade
If the broker also charges a $3.50 commission, your total cost would be:
$8 (spread) + $3.50 (commission) = $11.50 per trade
Why Use a Brokerage Calculator?
A Brokerage Calculator helps you estimate the exact brokerage charges and other fees before placing a trade.
How It Helps Traders
- Know Your Trading Costs Upfront – Avoid surprises by calculating all charges before executing trades.
- Compare Brokerage Across Platforms – Check fees for ASB Securities, Direct Broking, Sharesies, and more.
- Plan Your Trades More Efficiently – Helps you decide the most cost-effective trading strategy.
Who Should Use a Brokerage Calculator?
- Frequent Traders – Intraday and swing traders who need to keep costs low.
- Forex & CFD Traders – Calculating spreads, commissions, and leverage costs.
- Long-Term Investors – Checking hidden charges on delivery trades.
How to Use Our Brokerage Calculator?
- Select Your Trading Segment – Stocks, forex, CFDs, or ETFs.
- Enter Your Trade Details – Trade size, buy/sell price, and broker.
- Choose Your Broker – Compare brokerage charges across platforms.
- Get Instant Results – See total brokerage and charges before placing a trade.
By understanding your trading costs in advance, you can optimise your trades and increase profitability.
Is 1% Brokerage Too High?
Yes, a 1% brokerage fee is very high in today’s market. Most online brokers charge between 0.10% to 0.50% per trade.
High vs. Low Brokerage
If you buy $10,000 worth of shares, here’s the difference:
- Broker charging 1%: $10,000 × 1% = $100 brokerage per trade
- Broker charging 0.20%: $10,000 × 0.20% = $20 brokerage per trade
Using a low-cost broker saves you $80 per trade.
How to Reduce Brokerage Fees in New Zealand?
Want to minimise trading costs? Follow these smart tips:
- Use Discount Brokers – Choose Sharesies or Hatch for lower-cost US stock trading.
- Opt for Annual Brokerage Plans – Some brokers offer flat-fee plans for high-volume traders.
- Trade on Low-Volume Days – Lower exchange fees apply on less volatile days.
- Use Limit Orders Instead of Market Orders – Avoid higher slippage costs.
- Compare Brokers Before Trading – Always check for hidden fees like currency conversion charges.
Brokerage fees are an unavoidable cost in trading, but they can be managed and reduced with the right broker and strategy. By using a Brokerage Calculator, you can estimate your trading costs in advance, compare brokers, and make smarter financial decisions.
Start using our free Brokerage Calculator today and take control of your trading expenses!
