Nabtrade is a popular online trading platform marketed to all investors, however, Forbes Advisor believes that it may be better suited to seasoned traders due to its premium offerings that incur subscription fees. It also has a more complicated and tiered fee structure for each trade, which may confuse those looking to merely dip their toes into the investment world.
Pros
- Consistent fees across ASX shares, ETFs and international trades
- Ability to trade warrants, options and managed funds
- CHESS-sponsored ASX trades
Cons
- Premium subscription fees
- Limited international market access
- Complicated tiered fee structure
Table of Contents
About Nabtrade
NAB, one of Australia’s big four banks, offers Australians investment opportunities via its online investing platform, nabtrade. The bank notes that the platform was built in a post-financial-crisis climate to serve investors “eager to benefit from a world recovering from the Great Recession”.
That being said, nabtrade officially became available in 2012 with the trading service provided by WealthHub Securities Limited, a wholly owned subsidiary of NAB.
In addition to being available via web browser, nabtrade also offers its users a mobile experience through an app available on both iOS and Android.
While you don’t have to be a NAB internet banking customer to use nabtrade, it does come with some benefits–such as a pre-filled application process that allows you to start trading in minutes. All NAB customers can also see their nabtrade account information on the same portal as their NAB internet banking, and transfer funds between their NAB and nabtrade accounts instantaneously.
Regardless of whether you’re a NAB customer or not, you will have to make an initial investment of $500 for your first purchase. You’ll instantly have access to live pricing, which means you’ll be able to see the market updated in real time. This helps investors keep track of how their investments are moving at any time throughout the day or week, while the market is open.
It’s important to note that nabtrade operates under a CHESS-sponsored model when it comes to ASX trading, so shareholders will receive their own HIN number and can easily prove ownership of their shares should anything happen to the trading app (such as it closing down).
Related: CommSec Review
Market Access
When signing up to nabtrade, you can access the ASX, allowing you to buy and sell local shares. This is usually a minimum requirement for Australian investors, however, some users may only be interested in trading overseas.
For those who want access to the ASX and some overseas markets, nabtrade makes that possible. It also provides its users with the ability to trade internationally in the US, UK, Hong Kong and Germany.
Nabtrade also allows its users to trade further afield than company shares; you can trade warrants, options, ETFs and managed funds via the investment platform too.
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Nabtrade Fees Explained
As outlined above, nabtrade gives you access to different markets both here and overseas–but this opportunity comes at a cost. When trading, it’s important to understand the fees that will be associated with any trades you make. You don’t want to be paying more in fees than you may be able to make in profits.
At nabtrade, the fees for trading shares on the ASX are dependent on how much you are investing. This is how they are calculated:
- For trades up to $1,000, there is a fee of $9.95;
- Between $1,000 and $5,000 incurs a fee of $14.95;
- Between $5,000 and $20,000, $19.95; and
- For trades more than $20,000, the fee is 0.11% of the trade value.
These are the fees you pay when trading via the online platform, whether through your web browser or your mobile device. For trades placed over the phone, the fee is $59.95 or 0.55% of the trade value, whichever is greater.
The same fee breakdown applies when trading on international markets, or when trading ETFs.
It’s important to note that on top of the trade fee, international trades will also incur a foreign exchange conversion spread of between 0.50% to 0.80% of the trade transaction value.
Does Nabtrade Charge an Account Fee?
There is no account fee associated with nabtrade. This means to open an account, and to keep an account open–even if inactive–won’t cost the user anything.
In lieu of an account fee, some online trading platforms charge a subscription fee instead. Nabtrade is one of those platforms: the entry level member subscription has no fee, but higher level subscriptions with additional perks will incur subscription fees.
Does Nabtrade Charge International Fees?
Yes, nabtrade does charge a fee for international trading. As stated, these fees are broken down in the same manner as the fees Nabtrade charges for ASX trading. The fees are:
- For trades up to $1000, there is a fee of $9.95;
- Between $1000 and $5000 incurs a fee of $14.95;
- Between $5000 and $20,000, $19.95;
- For trades more than $20,000, the fee is 0.11% of the trade value; and
- For trades placed over the phone, the fee is $59.95 or 0.55% of the trade value, whichever is greater.
Additionally, there is a foreign exchange conversion spread of between 0.50% to 0.80% of the trade transaction value.
Nabtrade Guidance and Support
Whether you’re a beginner trader or an experienced investor, you may be seeking an online trading platform that provides guidance and support. At nabtrade, you can expect many educational resources that will help you through your investing journey.
Most prominently, nabtrade provides its users with access to research from fund managers at Morningstar, allowing traders respected insights into the anticipated movements of the market. This research can be used as a guide to making further investment decisions but, alike any investment, should always be approached with care. There is no guarantee that the research will reflect future market movements.
In addition to the research, nabtrade also has an education centre and trade academy. These tools provide webinars, videos, articles and even platform tutorials to help users feel better equipped throughout their investment journey.
Customer Support
Nabtrade’s customer support capabilities include a live chat function, along with email and phone support–whether you’re calling from Australia or overseas. The phone line is available from Monday to Friday, between 8am and 6pm AEDT/AEST.
Discounts and Benefits
At the time of writing, there are no additional discounts or benefits available to those signing up to the nabtrade platform, or those already trading with nabtrade.
Who Should Use Nabtrade?
Forbes Advisor recently compared a wide range of share trading platforms to find the best online brokers for Australians. Nabtrade ranked very highly on that list, with an overall ranking of 4.2 stars out of 5.
It was determined that, owing to the premium subscription choices nabtrade offers users, this platform would be best for investors willing to pay money for greater insights–such as premium charting or a real-term alert functionality.
Frequently Asked Questions (FAQs)
Is nabtrade good for beginners?
Nabtrade is a suitable option for beginners, as it comes with many educational resources and guidance. It has the industry standard minimum initial investment of $500, which is a better buy-in for beginners than some other competitors that have minimum investments of $1,000 or more.
However, as nabtrade has premium subscription options with advanced insights and tools, nabtrade may be better suited to seasoned investors who are willing to pay for a superior experience on their share trading platform.
Nabtrade vs CommSec: Which is better?
Nabtrade and CommSec are two strong share trading platforms, both being owned by large banking institutions. When Forbes Advisor analysed the best online share trading platforms for Australians, CommSec came out as the slightly better choice over nabtrade, as CommSec has access to more international markets, better educational tools and no subscription fees. But both are very good options for Australian traders.
Can I use nabtrade without an NAB account?
Yes, you can use nabtrade even if you aren’t a NAB banking customer. The two entities operate separately, however, for those who do use NAB for online banking, there is the ability to link your NAB Banking and nabtrade accounts.
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