Hatch Kids Accounts have the same fair and transparent pricing as you’re used to, with one happy exception. We’ve lowered our usual $3 USD minimum brokerage fee to an absurdly small 50c USD on Kids Accounts. Yes, that’s right. Even if you place a $100k order for your child, as long as you’re buying or selling 50 or fewer shares, you’ll only pay a 50c fee.
The complete list of fees for Kids Accounts
Hatch doesn’t charge any monthly subscriptions (which can really add up over the years!), and your kid’s money is put to work the moment it lands in Hatch. All uninvested money is stored in a low-risk Money Market Fund that usually pays a monthly dividend. Don’t worry, you won’t even know it exists other than a potential wee bonus each month.
Making fees work for your child
Hatch is part of Kiwi Wealth, so we’re heavily invested in helping Kiwis put their money to work. So much so, we’re sharing some tips on how to 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 based on a percentage - 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.
You can leave money stockpiling in Hatch until you’re ready to buy shares. In the meantime, that money has already been put to work earning dividends in a Money Market Fund.
Buy shares when you have more than $100
Most investors aim to reduce the amount they spend on fees and Hatch makes it easy. If you’re investing $100 to buy 10 shares, the brokerage fee will be 50c USD - only 0.5% of the investment.
The magic really starts to show with bigger investments. If you invest $400 to buy 40 of the same shares for your child, the fee will still be 50c, but a teeny tiny 0.125% of the investment. By leaving your child’s money stockpiling until you hit the amount you’re happy with, you can save a lot on fees over the long run.
FYI for your own Hatch account, you just need to invest $600 USD or more in one order to get your fees below 0.5%.
Good money habits now = great life later
Money you invest today is 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 investor money by an average of around 10% a year (compare that to your bank account and wince!). In the short term, shares can change in price quite regularly (and even dramatically), but over the long term? So far, the share markets have increased in value.
We’ve used the wonderful calculator provided by Sorted to showcase the magic of compounding returns over 20 years: