Hatch Kids Accounts have the same fair and transparent pricing as you’re used to, but even cheaper! We want to encourage investing for the long-term, to grow wealth for the future.
The complete list of fees for Kids Accounts
Hatch doesn’t charge any monthly subscriptions (which can really add up over the years!). We want to keep fees transparent, and control in your hands, so here's a full breakdown.
Fee | Amount | How it works |
Brokerage for one-off trades | 50c USD
| A flat fee to buy or sell up to 50 shares. After that, It's just 1c per share (so 51 shares costs 51c) |
Brokerage for buying with auto-invest | Fees free!
| Use auto-invest with Hatch to invest a consistent amount regularly, growing wealth over time without the effort. |
Deposits and withdrawals | 0.5% | Included in the exchange rate you see in Hatch. It's roughly half what you pay to exchange travel money - about 50c for every $100 NZD you deposit. There are no minimum deposits, supporting you in adding small amounts regularly. |
US Tax | $1.50 USD (one-off) 50c USD (yearly) | With Hatch, all your US tax requirements are taken care of. These fees cover the cost of completing your US tax requirements on your behalf and it is deducted from your first deposit. |
🚨Important: For kids' accounts, any funds can only be withdrawn to the child's own bank account.
Making fees work for your child
Hatch is a digital investment platform that provides the tools, access and community to help Kiwis grow meaningful wealth. As part of that, we share easy investing tips below to help keep fees on your kid’s accounts as low as possible.
Set up an automatic payment in internet banking
The fee to exchange money from NZD to USD is percentage based - this means you can deposit as much or as little as you want, as often as you like. Depositing regularly gives you the benefits of dollar-cost averaging the exchange rate to turn NZD into USD - a strategy that doesn’t only work for Kids Accounts. Everyone can put in place good money habits like regular deposits through Hatch, then you can leave money stockpiling in Hatch until you’re ready to buy shares, or set up an auto-invest order to get that money working for you right away.
Get to know your 'effective fee rate'
Many investors aim to reduce the amount they spend on fees, and keep investment costs below a certain percentage - often called an 'effective fee rate'.
We want kids money to go towards investments to grow for their future, so we make our fees simple:
If you’re investing $100 USD for a one-off purchase of shares, the brokerage fee on a kids account will be 50c USD - only 0.5% of the investment.
If you're investing $100 USD through auto-invest, the brokerage fee on a kids account is $0 - 0% of the investment
Good money habits now = great life later
Money you invest today could be the most valuable money you ever invest. Why? Because it has the most time to be working for you. Historically, the US share markets have grown by an average of around 10% a year over the past 50 years (compare that to your bank account).
While past performance doesn't guarantee future returns, it's important to factor in the timeframe of your investment. In the short term, shares can change in price quite regularly (and even dramatically). So far over the long-term, using the S&P 500 as an example, the US share markets have increased in value.
We’ve used the wonderful calculator provided by Sorted to showcase the magic of compounding growth over 20 years:
Weekly deposits | Total deposits | Total at 10% returns (investing) | Total at 5% returns (saving) |
$5 | $5,200 | $15,610 | $8,807 |
$10 | $10,400 | $31,220 | $17,613 |
$20 | $20,800 | $62,440 | $35,225 |
$50 | $52,000 | $156,099 | $88,062 |
$100 | $104,000 | $312,199 | $176,124 |
Check out our full T&C's for Kids Accounts.
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