Because we believe in giving Kiwis a fair go. It may be attractive to pay a percentage fee when buying smaller amounts, but the goal is for your shares to increase in value. Hatch investors want to build meaningful wealth so we don't believe we should take a cut of your profits when you sell your shares. With Hatch, you pay just $3 USD to buy up to 300 shares. If those 300 shares increase in value, you'll still just pay $3 USD to sell them.
For example, let's say you bought 17.26519 Apple shares for $500 USD on 30 December 2016. Back then, Apple's share price was $28.96. Four years later, Apple's share price has increased to $134.87 and you want to sell your shares. Here's how the fees would work:
0.5% brokerage fee
$3 USD fee
Buy 17.26519 Apple shares
Sell 17.26519 Apple shares
With percentage fees, the more your shares increase in value, the more you'll have to pay to sell your shares. With Hatch's flat fees, you're not penalised for growing your money when you sell your shares.
We know a lot of new investors want to start small, which is why we have no minimum deposits. You can set up a regular payment into Hatch and that money will sit in a Money Market Fund, earning you dividends, until you're ready to invest it.