Superhero removes account fee, rolls out live data to all users

man-looking-at-share-trading-account-on-phone

Low-cost online share trading platform Superhero has announced the abolishment of its $9 premium account fee and the expansion of premium features to its entire customer base.

The decision means Superhero will now only be offering a single account (replacing the basic and premium tiers) through which all users will have access to formally premium features such as live market data and limit orders for no monthly account fee.

“We know the features of our premium account are some which investors expect and some investors look for. Making the cost free for these features puts us ahead of our competitors and ensures we live up to our mission of making investing accessible to all,” said Superhero co-founder and chief executive, John Winters.

According to Mozo Senior Research Analyst, Mitch Pollard, Superhero now sits alongside CommSec and Westpac as one of the few platforms to offer a live data feed for free.

“Access to live market data is a pretty standard feature from most brokers, but it typically comes at a cost for users,” he said. “So this decision from Superhero puts them in a relatively small group of platforms which do offer this feature as part of a free account tier.”

This week’s announcement is just the latest in what has been a busy first few months for the fledgling fintech which only opened its doors back in September 2020, but has since taken on over 50,000 customers.

Last month, Superhero rolled out its mobile app for iOS and Android to complement its existing desktop platform, and it released PayID integration which allows users to fund their trading accounts near-instantly depending on their bank.

Meanwhile, back in December Superhero announced its intention to enter the super game. The fintech revealed that it would be aiming to launch its own retail superannuation fund in early 2021 which, Winters told the AFR, would provide users with a "low cost, transparent and controlled experience.”

The Superhero model

Superhero launched to much fanfare last year, with its low-cost brokerage model drawing comparisons at the time to US-based stock trading platform Robinhood.

Users are able to start trading with a minimum investment of $100 and they are charged a flat $5 fee for purchasing ASX shares and $0 for ETF purchases - making Superhero’s brokerage prices some of the lowest currently available on the market.

So how is Superhero able to keep costs relatively low? As Pollard explains, it all comes down to the share ownership model being used, which in Superhero’s case is a custodian model.

“With CHESS sponsored ownership, shares are held in your name under a Holder Identification Number (HIN),” he said. “So, if you were to make a trade it would be recorded on the ASX servers that Joe Smith made this trade, at this time, and you would have the legal ownership and full rights of that share.

“Under a custodian model, shares are held as a group by the broker which acts as the ‘custodian’ for them. They’re still legally yours, but they’re being held in trust, so this may mean you don’t always have direct access to voting rights, dividend reinvestment plans and corporate actions - but you are entitled to the proceeds those shares may generate.

“What that lets Superhero and other brokers using this model do is save money on brokerage, by pooling a lot of their users' purchases together and then making, say, one actual purchase against the market.”

RELATED: Share trading surges among millennials, but are they jumping in too quickly?

Interested in learning more? Read our review of the Superhero account, or compare it to some of the best online share trading platforms in Australia as voted by our expert judges in the 2020 Mozo Experts Choice Awards.

Compare share trading accounts

Mozo may receive payment if you click to the website of one of the products below. Mozo does not compare the entire market.
Last updated 23 July 2024Important disclosures
  • Share Trading

    Small trade brokerage
    Monthly fee
    $7.70
    $0.00

    Buy and sell with a low $7.70 flat fee per trade and access to all ASX Shares and ETFs to invest in with GO Markets. Enjoy dedicated local customer support, a regulated Australian company for trading ASX Shares and ETFs. Plus, enjoy $0 Brokerage on your next 15 trades! (T&Cs apply).

    Details
  • ASX Shares

    Small trade brokerage
    Monthly fee
    $0.00
    $0.00

    Join the world’s leading social trading platform, trusted by 30 million users worldwide. Invest in stocks, crypto, ETFs and more - all in one place. Hone your financial skills with a $100K virtual demo account.

    Details
  • Tiger Account

    Small trade brokerage
    Monthly fee
    $5.50
    $0.00

    Tiger Brokers is an online broker listed on NASDAQ. It offers access to US, ASX & HK stocks, ETFs and US options trading. Mozo special offer for new users only: 7% p.a. on uninvested cash balance up to AUD 100,000 for the first 150 days, with a value up to AUD 2,877. Plus receive US$30 Tesla (TSLA) and US$30 NVIDIA (NVDA) shares with an accumulated deposit of at least AUD 2,000. T&Cs apply – for full details, go to the Tiger Brokers website.

    Details
  • Mozo Experts Choice 2024
    Share Investing

    Standard

    Small trade brokerage
    Monthly fee
    $0.00
    $0.00

    CMC Markets Invest makes it easy to trade with a handy web and mobile platform, competitive pricing and thousands of securities. Buy Australian and US shares from $0 brokerage (T&Cs apply - see website for full details).

    Details
  • Share Trading

    Small trade brokerage
    Monthly fee
    $8.00
    $0.00

    Enjoy access to over 13,000 local and international shares and ETFs with $0 Commission on all international shares including US. Trade pre- and post-market with extended hours on over 70 key US shares. Get better rates on domestic shares for active traders - trade Australian shares from $5 commission. (T&Cs apply). Around the clock customer support from real humans (not chat bots). Trade international and Australian shares from the one account with intuitive desktop and mobile app.

    Details

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.