I am quite new to stock market investing. I started investing in Share Marketing in New Zealand back in 2019. Before investing I was not sure, that investment in the share market in New Zealand is so easy. Yes, I mean it. Even if you do not have any previous investing experience or if you are not tech-savvy, that is totally fine. Later when I explain, you will understand how easy it is to invest in the Share Market in New Zealand. You can invest your money in the share market in New Zealand, Australia, the USA, Singapore, China, and Hong Kong.
Why do you need to invest?
Before investing in the share market a lot of people think old school. They are scared about whether it is safe to invest in the share market as they do not have any previous financial experience. I am not your advisor but let me tell you, saving money in the bank account is the last thing that I will do. Why you should not save money in a bank account and rather invest in low-risk shares? The answer is if you keep your money in a bank account, the value of your money will become less over the years (thanks to inflation! ). Right now the inflation rate is 6.6%. So, if you had $1000 last year, now your $1000 is worth only $934. So, actually, you have lost money over the years. But, if you had invested in low-risk shares like ETF or S&P 500, you might have had a 10% profit.
You can also read my article Easy Step-by-Step Guide to Start Your Cryptocurrency Journey Today
How and Where do I invest in Share Market in New Zealand?
There are easy ways to invest in the share market in New Zealand. If you have a mobile and internet connection, you can do this right now if this is a weekday! Below are the list of apps/websites through which I invest in New Zealand share market:
- Sharesies – Super user friendly and recommended for new investors. Gives you access to New Zealand, Australia and USA share market. Have got an app as well in App Store. You can read my post How to Easily Trade Share in New Zealand Stock Market to know more about Sharesies and step-by-step procedures to invest in Sharesies.
- Hatch – Hatch gives you access to big global brands and invest money on those global brands. You can purchase in USA market only through Hatch. The user interface is nice and user friendly which gives you a lot of useful data. Recommended for new investors in US market while sitting in New Zealand. Unfortunately, this one does not have any app.
- Tiger Trade – Tiger trade is a new share trading exchange (the mother company is Fintech and based in Singapore). This is one of the leading share exchange. Tiger Trade gives you access to New Zealand, Australia, USA, China, Singapore, Europe and Hong Kong share markets. They have an app as well and in this exchange, you will get a huge amount of information.
As Tiger Trade is comparatively new to New Zealand, they are promoting some huge offers. Once you sign up, you will get 10 NZD Stock Voucher, 3 Rocket Lab Share for Free and 1 Mistry Share (which gives you possibility to get a Tesla Share!)
Pros and Cons of the Above 3 – Which one to Choose?
| Things to Compare | Sharesies | Hatch | Tiger Trade |
| Charges & Commission | 0.50% of the transaction value (up to $3,000) and 0.10% for trades above $3,000 | $3 per transaction | Commission $0.99 + Platform fee $1 = $1.99 fixed |
| Referral Bonus | Click this referral link and you will get $5 to invest. | Click this referral link and you will get $10 when you sign up and deposit $100 to invest. | Awesome Offer! Click this referral link and you will get $10 Stock Voucher + 3 Rocket Lab Shares + 1 Mistry Share (Chance to win Tesla Share!) when you deposit $500 or more here. |
| Market Access | New Zealand, USA and Australia shares | USA Shares | New Zealand, Australia, USA, China, Singapore, Hongkong and UK |
| FX Fees (for foreign shares only ) | 0.40% of the transaction value | 0.50% of the transaction value | Fixed $1.99 |
| Web & app | Available both in Web & app | Available in Web | Available in both Web and App |
Some tips for Investing for new Beginners:
Well, I am not your financial advisor but I can give you some small tips before you start investing in share market in New Zealand or any share market. Tips below:
- This is always better to invest in ETFs (Exchange Traded Fund) and S&P rather investing in individual shares. In ETF and S&P the asset management companies distribute their shares in different companies. So, your money is distributed in more than 1 companies. May be the return is low compared to individual share but the investment is less risk investment.
- Before investing, look for the market cap of a company. This means how much the company worth. You can sort the company by market cap.
- Try to invest in well reupdated companies. Companies like Apple or Microsoft or Google you will they are not going to diminish overnight and they are changing peoples life so always better to invest in these companies.
- Have a look at the growth chart of the last 2-3 years and you will get an idea what the company growth looks like.
- P/E Ratio – for now just remember the more the P/E ratio in positive side, the company is more secure to invest.
- If you are unsure to invest large amount, start with $10 weekly and then see how you do over the weeks. You will learn a lot while investing small amounts and then slowing investing more.
