Opening an account with Hatch is free, but there are brokerage, exchange and tax reporting fees you should be aware of.
When you buy or sell shares or ETFs from your Hatch account, you pay a brokerage fee (sometimes referred to as a "commission") that we split with our US broking partner, Drive Wealth:
To buy or sell a fraction of one share: $3 USD
To buy or sell one or more shares: $0.02 USD a share, rounded to the nearest $0.01 USD. There's an $8 USD minimum fee, so up until you buy 400 shares, you'll be paying a flat rate of $8 USD on every order
If you buy any amount from 1 - 399.9999 Tesla shares, the fee will be $8 USD
If you buy 401 Tesla shares, the fee will be $8.02 USD.
We know $0 brokerage fees are a hot trend right now, so we have another article that explains why we don't offer $0 commissions for trading.
Our exchange fee is 0.5% of the current market rate - not 0.5% of your overall deposit amount. Essentially, the exchange rate your deposit gets processed at will be 0.5% lower than the current market rate, and we split the difference with our FX partner World First.
The fee is included in the exchange rate you see in Hatch. Our fee is lower than what most banks charge, which is usually about 1% of the money you exchange. It works like this:
- Base exchange rate (Interbank rate): 1 NZD = 0.66 USD
- Hatch rate: 1 NZD = 0.6567 USD (0.66 - (0.66 * 0.005)
Using this example, if you deposited $10,000 the Hatch exchange rate would be 0.6567, resulting in $6,567 USD.
Tax reporting fees:
Once you have made an investment through Hatch, every part of your US tax requirements is automatically taken care of for you. The processing fees are deducted from your available balance in Hatch and paid directly to our partners. Hatch doesn’t take a cut:
- One-off W-8BEN processing fee: When you make your first deposit, a one-off $1.50 USD fee is deducted to cover the cost of processing the compulsory W-8BEN tax form.
- Annual tax return filing fee: An annual $0.50 USD fee will be deducted from your available balance to cover the cost of processing your annual US tax return.
American Depository Receipts (ADRs) are clearly labeled on Hatch because they are different from other US shares. An ADR is a certificate issued by a US depository bank. The bank buys shares in the foreign company listed on a foreign share market and repackages them to list on the US share markets as ADRs.
While Hatch doesn’t charge any fees on ADRs, the banks do charge custodial fees. These fees generally range from $0.01 - $0.03 per ADR, per year, but it can vary. You can find the exact fees on the SEC’s website by searching for a company and viewing its F-6 registration statement. Be warned! The website is awful.
Transferring shares in and out of Hatch:
We'd love you to transfer your existing US shares to Hatch! Most brokers charge a fee for the transfer, but we cover as much of it as we can.
If you are transferring shares from Hatch to another broker (why?!?!?), DriveWealth charge an outgoing transfer fee. The transfer fee depends on the broker you are moving them too. We have to on-charge it, but don't pocket any of it.