Financial Services Guide (applicable from 29 July 2024)

Stakeshop Pty Ltd (ACN 610 105 505) as Authorised Representative (No. 1241398) of Stakeshop AFSL Pty Ltd (ACN 653 777 336).

FSG Preparation date: 5 July 2024

Version 1

Stakeshop Pty Ltd (Stake, us, our) is an Authorised Representative (Authorised Representative No. 1241398) of Stakeshop AFSL Pty Ltd which holds Australian Financial Services Licence number 548196.

This Financial Services Guide (FSG) is provided to you by Stake to inform you of the financial services provided by us.

The distribution of this FSG by Stakeshop Pty Ltd has been authorised by Stakeshop AFSL Pty Ltd.

This FSG applies to those who agree to use or receive those Stake services which are regulated in Australia. For the Terms, Disclosures and other legal documents related to our other services regulated in other jurisdictions, please visit Legal | Stake.

If you are based in a jurisdiction where Stake is not registered (or regulated) you are responsible for ensuring that you comply with all local laws and regulations that you are subject to and for obtaining your own financial advice and legal advice if you are unsure.

Headquarters

Stakeshop Pty Ltd c/o BDO Level 11, 1 Margaret St Sydney NSW 2000, Australia

Postal

Stakeshop Pty Ltd c/o BDO Level 11, 1 Margaret St Sydney NSW 2000, Australia

Please note for special deliveries, we require that you liaise with your usual Stake contact before sending.

Contact

Website – https://hellostake.com/au

Email – support@hellostake.com

What is a Financial Services Guide?

This FSG is an important document to help you understand the services provided by Stake and decide if you wish to use the financial services we are able to offer you.

Its purpose is to help you decide whether to use any financial service we offer and includes:

  • Who we are and what services we provide;

  • How to contact us;

  • What financial services we are authorised to provide to you and the financial products to which those services relate;

  • The costs of any services we may provide to you;

  • How we, our staff and any other relevant parties are paid and any remuneration that may be received by these parties;

  • Relationships we have with each further financial service provider who will provide services to you as a result of your engagement with Stake (ServicePartner);

  • How complaints about Stake or its Service Partners are addressed; and

  • Our compensation arrangements.

What other disclosure documents and statements will I receive?

Stake will not provide you with any personal financial product advice as part of its services to you and, accordingly, you will not receive a Statement of Advice from Stake.  Any advice we provide to you is general advice only, and does not take into account your specific needs or objectives. All of our commentary, statements of opinion and recommendations in relation to financial products have been prepared without taking into account your personal objectives, financial situations or needs. It is up to you to decide whether or not you want to use our services, and if you need personal assistance or advice, you should consult a suitably qualified financial adviser.

Generally, where we arrange for the issue of a financial product to you, you may receive a Product Disclosure Statement (PDS) or other relevant disclosure documents that include information about the product so that you can make an informed decision whether to acquire the product. The PDS will include any relevant terms, significant risks and costs associated with the supply of that financial product.

Who are we and what services do we provide?

Introduction

Stake provides a trading platform whereby customers have the ability to trade selected securities listed on certain Australian stock exchanges, including Cboe Australia and the Australian Securities Exchange (ASX) (under a service named “Stake AUS”), and United States (US) stock exchanges, including fractional interests in those securities in the US (under a service named “Stake Wall St”). Stake is not a direct participant on the exchanges through which the Stake AUS or Stake Wall St services are provided. Services are provided in conjunction with other licensed service providers, which are referred to as “Service Partners” below. However, and for the avoidance of doubt, these Service Partners provide their services to Stake and you directly and not by way of legal partnership with Stake.

Stake AUS

Stake AUS is a service by which Stake, as agent for the customer, arranges for the execution of orders on Australian listed exchanges submitted by customers through an agreement with its Service Partner, FinClear Execution Ltd (FinClear Execution) (AFSL 246842), which is an ASX Market Participant. These services are provided under an Intermediary Services Agreement between Stake and FinClear Execution.

Customer orders are subject to pre-trade checks by both Stake and FinClear Execution for anti-money laundering and market integrity risks prior to placement. 

Resulting trades are cleared and settled by FinClear Pty Ltd (FinClear) (AFSL 481017). Positions in securities acquired through FinClear are held in an individual ASX Clearing House Electronic Subregister System (CHESS) account  under the customer’s own Holder Identification Number (HIN).

Stakeshop AFSL Pty Ltd holds any Australian dollar cash position of a customer using Stake AUS on trust in a client monies account at an Authorised Deposit-Taking Institution (ADI) in compliance with the client monies provisions of the Corporations Act. To better facilitate customer management of their individual funds, Stake arranges for the engagement of Airwallex Pty Ltd (Airwallex) (AFSL 487221) which provides non-cash payment services to each customer. These services include the provision of a ‘Virtual Wallet’ to each customer (with a unique BSB and account number), reflecting the short-term holding of the funds in Airwallex’s bank account, held at an ADI. At the end of each business day, Stake transfers these funds to Stake’s trust account held at NAB, noted above, for further instruction by its customer. 

Stake Wall St

Stake Wall St is a service by which Stake, as agent and introducing broker of the customer, arranges for the execution and clearing of US securities orders by its Service Partner, DriveWealth LLC (DriveWealth), a US broker-dealer regulated by the US Securities and Exchange Commission (SEC) (No. 8-69161) and Financial Industry Regulatory Authority (FINRA) (CRD no. 165429). We have entered into a Carrying Agreement with DriveWealth, as a result of which you will have a fully disclosed account with DriveWealth in your name and agree to the terms and conditions of DriveWealth. DriveWealth provides execution (itself and via its affiliate DriveWealth Institutional LLC), clearance, settlement, custody and cashiering services to you in respect of US securities transactions. Upon agreeing to receive the Stake Wall St service, your identity will be disclosed to DriveWealth, so that DriveWealth can open an account for you to provide its services. 

DriveWealth acts in either a principal or riskless principal capacity with respect to the fractional share components of an order. DriveWealth will act in an agent capacity with respect to the full share component of an order. Customer orders are subject to pre-trade checks for compliance with US market regulations. All full share orders are executed by DriveWealth (or its affiliate) at the National Best Bid or Offer (NBBO) as of the time of the customer’s order. All fractional share orders are executed by DriveWealth with reference to the NBBO for the full share price of that security at the time of the customer’s order. 

Resulting trades are cleared and settled by DriveWealth, with each customer securities position held on trust by Depository Trust Company (DTC), a member of the U.S. Federal Reserve System. As Custodian, DriveWealth provides registry services for all Stake customer securities positions. 

The uninvested US denominated cash of each Stake Wall St Customer is held by DriveWealth at JP Morgan and swept daily into a money market fund, Dreyfus Government Cash Management fund (DAGXX), the units of which are held by the Bank of New York Mellon (BNY Mellon). BNY Mellon is supervised and regulated by the NY State Department of Financial Services and US Federal Reserve and is authorised by the US Prudential Regulation Authority (Firm Reference No. 122467).

Handling of Funds, Foreign Exchange

In order to deliver the Stake AUS or Stake Wall St service to you, Stake has engaged Airwallex (AFSL 487221)to provide you with non-cash payment services, foreign exchange services and remittance services. At the same time as agreeing to receive either Stake AUS or Stake Wall St service, you agree to also receive those Airwallex services necessary to receive the relevant brokerage service.

You will be able to deposit, transfer and withdraw funds in accordance with Stake’s Terms and Conditions.  

It should be noted that if you open an account with us, some of the information you provide will be used so that we, and our partners, can identify who you are as required by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act 2006).

The Financial Services we are authorised to provide

Stakeshop Pty Ltd is authorised as a representative of Stakeshop AFSL Pty Ltd to provide the following financial services to retail and wholesale clients:

  1. provide general financial product advice for:

    1. basic deposit products and non-cash payment products;

    2. derivatives;

    3. foreign exchange contracts;

    4. interests in managed investment schemes including investor directed portfolio services; and

    5. securities; 

  2. deal in a financial product by arranging for another person to issue, apply for, acquire, vary or dispose of non-cash payment products; and

  3. deal in a financial product by arranging for another person to apply for, acquire, vary or dispose of:

    1. basic deposit products and non-cash payment products;

    2. derivatives;

    3. foreign exchange contracts;

    4. interests in managed investment schemes including investor directed portfolio services; and

    5. securities.

When Stake (acting as authorised representative of Stakeshop AFSL Pty Ltd) provides these financial services to you, Stakeshop AFSL Pty Ltd is acting on your behalf.

In providing our service, other financial issues may arise, such as how to invest money, the most appropriate investments for you, and taxation issues. Stake is not authorised to provide advice relating to those financial issues, or any other financial services except those explained above. You should seek specific advice from the appropriate professionals if these issues are relevant to you.

Privacy

The privacy of your information is very important to us. We have practices which include the secure storage of personal information and safeguards against the accidental release of personal information. You can obtain a copy of our Privacy Policy at Privacy Policy | Stake.

If you are not satisfied with our response to your complaint with regards to our Privacy Policy, you can telephone the Office of the Australian Information Commissioner on hotline 1300 363 992.

How to contact us or instruct us

You can get in touch with us through the contact details at the top of this FSG.

If you wish to execute a transaction you can do so through our website on your desktop/laptop or mobile application on applicable mobile devices. When you do this, you will be subject to our Terms and Conditions, which are available at Legal | Stake.

How are we paid?

There are a number of costs, fees and commissions that you may be required to pay us, in order to use our services which will be updated in this FSG from time to time. As at the date of this FSG, these fees are as set out in the table below:

U.S. Pricing

All fees are in USD.

Fee

Amount

Description

Brokerage fee

$3 per trade up to $30,000, or 0.01% for orders above $30,000

A $3 flat brokerage fee applies per U.S. trade up to $30,000. For trades valued at $30,000 or greater, a brokerage fee of 0.01% of the transaction value applies. 

Foreign exchange (FX) fee

70 basis points on the spot rate  (minimum of $2) 

This fee applies to fund transfers in and out of your stake account between AUD and USD.

FastFunds

0.5%

This fee allows you to access USD funds for the purpose of trading immediately after confirmation of a deposit or funds transfer request, or when the funds have been received, depending on the selected payment method.

Card Funding

Debit cards: 0.5%

Credit cards: 2.5%

Fee to use a card to fund your account. This includes the use of Apple Pay and Google Pay. 

Securities and Exchange (SEC) Commission fee 

$0.08 per $10,000 of sold volume (minimum $0.01)

A US regulatory SEC fee for the costs involved in their regulation of equity dealers and the equities market account set-up. This applies only to sell orders.

Trading activity fee

$0.000166 per share sold with a per-transaction cap of $8.30 (minimum $0.01)

A US regulatory FINRA fee to support their operations on a cash-flow neutral basis.

American Depository Receipt (ADR) fee

$0.01 - $0.03 per share per quarter

This is a periodic fee to compensate the agent bank that is providing custodial services on behalf of the ADR.

Share Transfer In

No fees apply

The fees to transfer a share portfolio from a third party broker or brokerage platform to Stake. Stake’s U.S. broker-dealer, DriveWealth, accepts incoming share transfers. 

Some brokers charge fees for outgoing transfers. For more information, see here.

Share Transfer Out

Via ACATS - $200 per account

Via DTC - $200 per account (up to 4 positions, additional positions are $50 per position)

Via DRS - $200 per position

Via DWAC - $200 per position

The fees to transfer a share portfolio from Stake to a third party broker or brokerage platform. Brokers accept transfers via ACATS or DTC. Transfer agents accept transfers via DRS. 

A sufficient cash balance is required in your Stake account to commence a transfer.

Check with your new broker to understand if additional fees apply.

AUS Pricing

All fees are in AUD.

Fee

Amount

Description

Brokerage fee

$3 per trade up to $30,000, or

0.01% for orders above $30,000

A $3 flat brokerage fee applies per trade up to $30,000. For trades valued at $30,000 or greater, a brokerage fee of 0.01% of the transaction value applies. 

FastFunds

0.5%

This fee allows you to access AUD funds for the purpose of trading immediately after confirmation of a funds transfer request from USD to AUD, or when the funds have been received, depending on the selected payment method.

Card Funding

Debit card: 0.5%

Credit card: 2.5%

Fee to use a card to fund your account. This includes the use of Apple Pay and Google Pay. 

Stake Black

All fees are in AUD.

Fee

Amount

Description

Stake Black 

Wall St: $14/month or $144 yearly

Aus: $14/month or $144 yearly

Both: $20/month or $204 yearly

A fee to access a membership service, Stake Black, which provides additional tools and features on Stake AUS and/or Stake Wall St.

Stakeshop Pty Ltd may earn interest on the monies held for our customers by Stakeshop AFSL Pty Ltd and handled by our Service Partners, DriveWealth and Airwallex. Stakeshop Pty Ltd may also earn commissions ranging between 0% to 6% from lead managers in relation to your participation in Stake Capital Raises. 

None of the benefits received by us from third parties affect the quality of our service or increase or impact the amounts payable by you as part of receiving our services. You can request more specific details of other benefits that will be received by Stake in relation to financial services described in this FSG by contacting Stake directly or using the contact details set out at the start of this FSG.

How do Stake’s people and related third parties get paid?

If you have been referred to us by another party, that other party may receive an introductory fee and/or an ongoing commission on every transaction. This fee will only be paid to the referring party if authorised by you.

Our directors and employees who provide the financial services described in this FSG are remunerated by way of salary and other employee benefits. They may also be eligible for a discretionary bonus or other incentives. Employees may also be rewarded by monetary and non-monetary benefits. It is not possible to determine in advance what (if any) additional benefits any employee will receive as these benefits are not generally attributed to any particular product or service they provide.

You may request further details of the fees and benefits (including any commissions) that may be payable at any time by reviewing our pricing page or contacting us.

Details of Associations or Relationships

Stake has a contractual relationship with Airwallex Pty Ltd, who issues customers with non-cash payment facilities. Stake also has contractual relationships with its U.S. broker-dealer, DriveWealth, and its Australian broker, FinClear.

Complaints and Disputes

If you are not satisfied with any aspect of the service that has been provided by us, you are entitled to complain. We have established procedures to ensure that all enquiries and complaints are dealt with. Please contact our Complaints Manager on:

Email address: support@hellostake.com

Phone number: (02) 8294 6149

Postal address: Stakeshop Pty Ltd c/o BDO, Level 11, 1 Margaret St, Sydney NSW 2000, Australia

All complaints are reviewed and investigated by our Customer Success team. If you make a complaint, our first response will be to contact you to discuss the complaint and to register a formal record of such complaint.

In some situations, a complaint may be received by Stake but, on investigation, the complaint in fact relates to services provided by another financial firm (for example, our Service Partners). Where this occurs, Stake will liaise with you to resolve the complaint, whilst working with the relevant Service Partner to resolve the underlying issue.

In the event that we are unable to resolve any issue or complaint in respect of the financial services Stake is authorised to provide, and you believe your complaint has not been satisfactorily dealt with, we offer the use of an independent dispute resolution body, the Australian Financial Complaints Authority (AFCA), of which Stakeshop AFSL Pty Ltd is a member.

You can contact AFCA on 1800 931 678 (if in Australia) or in writing at GPO Box 3, Melbourne, Victoria 3001, Australia. You can also contact the AFCA through their website: Home | Australian Financial Complaints Authority (AFCA) , by email: info@afca.org.au.

Compensation Arrangements

Stake holds Professional Indemnity Insurance cover for the activities conducted under its Australian Financial Services Licence in compliance with the requirements of s912B of the Corporations Act 2001 and Regulatory Guide RG126.

Please retain this FSG for your reference and any future dealings with us.


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Stakeshop Pty Ltd, trading as Stake, ACN 610105505, is an authorised representative (Authorised Representative No. 1241398) of Sanlam Private Wealth Pty Ltd (Australian Financial Services Licence No. 337927) ('Sanlam') and an authorised representative (Authorised Representative No. 1241398) of Airwallex Pty Ltd (Australian Financial Services Licence No. 487221) ('Airwallex'). Stake is not authorised by Airwallex under Airwallex’s AFSL to arrange for clients to be issued with securities as Airwallex is not authorised under its AFSL for this purpose. Stake is not authorised by Sanlam under Sanlam’s AFSL to arrange for clients to be issued with a non-cash payment facility as Sanlam is not authorised under its AFSL for this purpose. Stake SMSF Pty Ltd (‘Stake Super’) is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up a self managed super fund (‘SMSF’). When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment of a SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. Stakeshop Pty Ltd will also run marketing and promotions to you under. For more information about SMSFs, see our SMSF Risks page.The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake and Stake Super, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice given by Stake is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Financial Services GuideTerms & ConditionsPrivacy Policy and Disclaimers  before deciding to invest on or use Stake or Stake Super. By using our website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake and Stake Super are registered trademarks in Australia.

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