ShareMeUp charges a minimum brokerage fee of 99c which is based on the minimum purchase amount of $50 per security. This brokerage fee is capped at 1.98% of the investment amount, which ranges between $50 to $500 per security.
In addition, ShareMeUp engages a third party provider to carry out the direct-debit and cash transaction automation – for this service, the third-party provider charges a fixed fee for the payment transaction of $1.00 and a variable fee of 0.1% of the amount invested ($50). The variable fee of 0.1% is not calculated on ShareMeUp’s brokerage or the supplier charges, only the amount invested which can range between $50 to $500 per security purchased.
Example 1
John invests $50.00 into Auckland International Airport (AIA).
The total amount that will be direct debited from John's account is $52.04. The components that make up this fee are outlined below.
Investment Amount - $50.00
Brokerage fee (to ShareMeUp) - $0.99
Merchant fee (to the third-party supplier) - $1.05
For Example 1, the total transaction cost is $2.04 on top of amount invested ($50.00). To be able to buy and hold shares directly in a shareholder’s name as opposed to having a custodian hold them on behalf without any ongoing monthly fees is a key feature and would normally cost a minimum of $15.00 for such a transaction. ShareMeUp does not charge any ongoing monthly or custody fees.
The greater the number of securities purchased, the more cost-effective it becomes. For example, if an investor decides to invest in six (6) different securities and puts $50.00 a month into each one, a total of $300 per month, the merchant fee only increases marginally from $1.05 (for Example 1) to purchase one (1) security to $1.30 in Example 2 for the purchase of six (6) different securities.
Example 2
Investment Amount - $300 (or $50 X 6 securities, say AIA, POT, SKO, FPH, SPK, PPH)
Brokerage fee to ShareMeUp - $5.94 (1.98%)
Merchant fee (to the third party supplier) - $1.30
For Example 2, the total transaction cost is $7.24 on top of amount invested ($300.00). To be able to buy and hold shares directly in a shareholder’s name as opposed to having a custodian hold them on behalf without any ongoing monthly fees is a key feature and would normally cost a minimum of $90.00 for such a transaction ($15.00 per transaction for 6 securities purchased). ShareMeUp does not charge any ongoing monthly or custody fees.