How is Superhero different to micro-investing?

Superhero lets New Zealanders invest in the market with as little as US$10 for U.S. Shares and A$100 for ASX Shares. But don’t be fooled – Superhero is not a micro-investing platform. It’s better than that.

Micro-investing platforms generally offer two benefits:

• Low minimum investment
• Automatic investment (when you make a digital purchase, your ‘spare change’ is automatically invested on your behalf)

However, micro-investing platforms generally have two drawbacks as well:

• Brokerage fees that are high in percentage terms (even if they’re low in dollar terms)
• Few investment options

So how is Superhero different?

Superhero vs micro-investing

The first point of difference is that even though Superhero lets you invest with as little as US$10, it’s a share-trading platform, not a micro-investing platform.

Second, Superhero’s pricing is incredibly affordable:

• US$2 brokerage on Aussie trades up to A$20,000. 0.01% of trade size for trades over US $20,000. ($0 until 01/05)
• A$2 brokerage on Aussie trades up to A$20,000. 0.01% of trade size for trades over A$20,000. ($0 until 01/05)

Third, Superhero offers a wide range of investing options:

• Individual companies (e.g. Commonwealth Bank, Apple, Tesla, Disney)
• ETFs (e.g. ASX 200, Global Healthcare, US Tech Giants)

Even better, Superhero’s ‘Invest’ dashboard makes it easy for you to view shares and compare performance by market, category and industry.

You can invest even if you have limited funds and experience

There are usually two main obstacles that stop people investing:

• They don’t have enough money to get started
• They don’t know which companies to invest in

Superhero has solved both problems.

You don’t need much money to get started – because the minimum investment is just AU$100 if you’re investing in the Australian market or US$10 in the American market.

And you don’t need to be an expert stock picker – because instead of buying individual companies, you can buy broad-based ETFs.

How do ETFs work?

An individual ETF contains a basket of securities – sometimes several hundred. 

The basket of securities might cover multiple sectors. For example, the S&P/ASX 200 includes the top 200 companies listed on the Australian Securities Exchange by market capitalisation.

Alternatively, the basket of securities might go deep within a single sector. For example, the S&P Global Clean Energy Select Index contains 30 of the largest and most liquid companies involved in global clean energy production, technology and equipment.

Want to invest in the Australian stock market but don’t know which companies to choose? Potentially, you could buy units in the S&P/ASX 200 instead. Want to invest in a sector like global clean energy production but don’t know which companies have the most potential? Potentially, you could buy units in the S&P Global Clean Energy Select Index instead. 

Investing in a basket of securities lets you spread your risk around. So your overall portfolio can make gains even if individual securities go backwards.