Stakeshop Pty Ltd is registered as an overseas company in New Zealand (NZBN: 9429047452152), and is registered as a Financial Service Provider under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (No. FSP774414). We hold a full licence issued by the Financial Markets Authority (“FMA”) to provide a financial advice service. However, the content on this website has not been prepared to take into account any of your individual objectives, financial situation or needs.
At Stake, 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 is of a general nature only.
Please be aware that when investing, all your capital is at risk. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice.
When opening an account with Stake you confirm that your details will be shared with DriveWealth, LLC (DriveWealth) and an application for a DriveWealth brokerage account (Limited Purpose Margin Account) will be made. You also agree to make all of your fully paid US listed securities available to be lent to DriveWealth in return for a payment. This will include agreeing to DriveWealth causing cash or other collateral to be held in a third-party custodial account for your benefit to secure the loan. Please read the DriveWealth terms and conditions, disclosures, customer agreement and master securities lending agreement documents before applying for a Stake account.
The content provided on our website or mobile application is for general information purposes only and is not intended to constitute financial advice for the purposes of the Financial Advisers Act 2008 or the Financial Markets Conduct Act 2013, or an invitation or an offer to buy or sell any financial product or security. To the extent you require further information about the relevant New Zealand legislation that may apply, or require specific advice, please contact your legal and/or financial adviser (as appropriate).
Stake’s US broker-dealer, DriveWealth, is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Please be aware that SIPC may not protect you with respect to loaned securities once such securities are removed from your account. Explanatory brochure available upon request or at sipc.org. Check the background of DriveWealth on FINRA’s BrokerCheck here.
Information on Stake is not an offer, solicitation of an offer, or advice to buy or sell securities or any financial product, or to open a trading account in any jurisdiction where Stake is not registered to do so. Upon opening an account with Stake from a jurisdiction where Stake is not registered or able to market its services, you confirm that Stake did not make an offer, solicit an offer or provide any advice to buy or sell a financial product. 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.
System Availability, Orders, Execution and Data
Stake offers different order types, including market, limit and stop orders.
A market order is an order to buy or sell a security at the current market price as quickly as possible. Market orders generally prioritise successful order execution over order price. They are not guaranteed to execute at the last price at the time you submit an order. Due to volatility and other factors, market orders may execute at a significantly different price. Market orders are not guaranteed to execute, due to illiquidity for example.
A limit order is an order to buy or sell a security at a specified price or better. Limit orders only execute if the security’s market price reaches the limit price set by you or better. If the specified limit price is never reached, the limit order will not be executed.
A stop order is an order to buy or sell a stock once a specified trigger price is reached. If the trigger price is reached, this triggers a market order to be placed for the desired trade to execute at the best price immediately obtainable. Stop sell orders are often used to limit the amount of losses if a stock price falls, however they are not guaranteed to execute, and may execute at a significantly worse price than the trigger price. Stop orders may reduce your trading risk, but they do not completely eliminate it. For example, in a highly volatile market the market price may drop so quickly that there is no opportunity to liquidate your position at the stop price designated. You should monitor the status of your stop orders, especially once the trigger price has been met.
It is important to note that the limit price or stop price specified by you may not be reached and your order may expire or be canceled beforehand. The exchange, Stake, or the broker, may need to cancel your order due to causes including (but not limited to) corporate actions, market statuses, or your specified price becoming too far from the market price. Even if the limit price or stop price specified by you is reached, your order may still not execute for a range of reasons, for example due to a lack of liquidity or technical error.
You may also place specific order types with different ‘time-in-force’ instructions or expiry periods that indicate how long an order will remain active before it is executed, canceled or expired.
It is your responsibility to monitor and manage your orders and instructions. You may not always be able to amend or cancel your instructions related to certain order types before the order is executed in full or part.
With all orders, factors such as market conditions, price volatility and liquidity may mean that an order is only partially executed, or not executed at all. Orders are not guaranteed to be placed by us or guaranteed to execute in full or part, at a certain time or at a particular price. Orders may expire or be canceled or purged by Stake, our Service Providers or the market operators or participants.
Please refer to the best execution terms of Stake’s US broker here.
System availability and response times, data, liquidity, execution speed and price are subject to market conditions, order size, order types, any connection limitations and various other factors.
All chart data is provided for informational purposes and should not be relied on for taxation or any other purposes. Please note that market data is provided courtesy of DriveWealth LLC and Tiingo and FX data is provided by Airwallex. No representation or warranty is made as to the timeliness, reliability, accuracy or completeness of the material and Stake does not accept any responsibility arising in any way for errors in, or omissions from, that data.
Extended Hours Trading
Before placing instructions to trade US securities in pre-market hours (4.00am - 9.30am Eastern Time (ET)) or post-market hours (4.00pm to 8.00pm ET) (Extended Hours Trading), an investor should consider that trading outside of standard US market hours (9.30am to 4.00pm, Monday - Friday Eastern Time) carries additional risks due to lower liquidity, price volatility, news announcements, higher volatility and wider spreads. Extended Hours Trading may not be suitable for all investors, and investors should carefully consider their own risk tolerance, objectives, financial situation and needs to determine if Extended Hours Trading is appropriate for them. Stake does not make any recommendations about whether Extended Hours Trading is suitable for individual investors.
During Extended Hours Trading, there may be lower liquidity and wider quote spreads. This means that there is less trading volume which can make it more difficult to execute trades, and wider spreads between the bid and ask prices for securities. As a result, instructions to place trades may not be executed (in full or part) during Extended Hours Trading and investors may find it difficult to get as favorable prices as they could have during standard US market hours.
Typically, many participants of Extended Hours Trading are professional traders from large institutions who may have access to more information than individual investors. We recommend that investors always research securities before making any investment decisions.
The price of securities may fluctuate more during Extended Hours Trading than standard US market hours. News, information and market updates announced during Extended Hours Trading may significantly impact the price of securities. Such announcements, if combined with lower liquidity and higher volatility, may cause sharp price swings of securities. Additionally, the price of securities may not be calculated or widely disseminated during Extended Hours Trading for certain securities whose value is derived from an underlying index or calculated at other predetermined levels. The prices of securities traded during Extended Hours Trading may not reflect the prices at the beginning or end of standard US market hours. Consequently, you may receive an inferior price when using Extended Hours Trading.
During standard US market hours, trading quotes, last-sales reports and prices are consolidated across electronic communications networks and trading facilities. Stake, via its US broker, may not have access to every, or any, facilities that participate in Extended Hours Trading. This means that quotes and prices will only represent the prices available at that time through facilities that Stake’s US broker has access to. Quotes and last-sales reports can vary widely between facilities, so you may not receive the best bids and offers available on every facility during Extended Hours Trading.
Instructions for orders designated for Extended Hours Trading are not guaranteed to be executed in full or part, and our US Broker may reject certain orders at their discretion.
For more information about Extended Hours Trading and the risks, see our US Broker’s Extended Hours Trading Disclosures here. This contains important information about how Extended Hours Trading works and important considerations, including the order types available and how our US Broker will handle them. For example, DriveWealth uses a practice referred to as ‘Market Order Collaring’ to limit losses for market orders where the market price has drastically changed.
Exchange Traded Funds
Before investing in an Exchange Traded Fund (ETF), an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. The prospectus contains this and other important information about the investment company. You should read the prospectus carefully before investing.
Inverse and leveraged ETFs are complicated instruments and are generally only suitable for experienced investors and traders who monitor their trading regularly and understand the nature of the product. On Stake, before trading these types of instruments, we suggest that you make yourself aware of the risks involved with them. We’ll also seek your confirmation that you understand these risks before you place a trade in one.
As these products are designed to meet their stated objectives on a daily basis, they may not be suitable for long term investments. Please make sure you are aware of these risks before you trade these products.
Over the Counter Securities
Before investing in an Over the Counter (OTC) security, you should be aware that OTC securities are securities that are not listed on a major exchange. You should consider whether investing in OTC securities is appropriate, taking into account your investment objectives, the risks of OTC securities and associated charges.
OTC securities may be more illiquid than securities listed on a major exchange, which may impact the execution price and an investor’s ability to buy or sell such securities within a reasonable period of time. OTC securities may be subject to higher volatility in price and spread. Further, OTC securities in certain companies may trade at a lower volume and any trade may impact the stock price more heavily.
Certain OTC securities may not be subject to the same minimum listing standards and regulatory requirements as listed securities on major exchanges. Companies may not be required to report and disclose certain information. Publicly available information about the company may also be difficult to obtain. There may also be business risks associated with OTC securities, including that the company may be new, have no assets, operations or revenues, or have products or services that are still in development. You should thoroughly research the relevant company before investing in an OTC security.
Fully Paid Securities Lending (Stock Lending)
Before participating in fully paid securities lending on Stake (Stock Lending), please consider whether it is right for you and seek appropriate financial, legal and taxation advice. You should consider your financial situation and needs, tax status, investment objectives, investment time horizon, liquidity needs, risk tolerance and any other relevant information. Stake does not take these into account. Please review Stake’s Terms and Conditions and Stock Lending Explained page, as well as DriveWealth’s Risk Disclosures and Master Securities Lending Agreement before joining Stake.
Only ‘fully paid’ securities are eligible to be loaned, that is, securities that are in your Stake account which have settled and have been fully paid for by you. There is no guarantee that your securities will be loaned. The securities actually borrowed, the duration of each loan and the revenue earned will vary based on market conditions and borrowing demand, amongst other things. If DriveWealth borrows your securities, it may then lend those securities to other market participants such as banks, investment funds, brokers etc. If your securities are loaned, you should be aware that they could be used to facilitate short selling, which could put downward pressure on the price of the loaned securities and affect the long term value of your securities.
When your shares are lent, ownership of the shares transfers from the lender (you) to the borrower. However, you retain a contractual right to the return of the loaned securities and may sell your shares or opt-out of Stock Lending at any time which will terminate the loan. As you retain economic ownership of the shares, you will still be exposed to fluctuations in the value of the shares while they are on loan.
You may opt-out of securities lending at any time by opening your US Wall St Account and clicking on Settings > Trade Settings > Stock Lending Settings > Uncheck the ‘Stock Lending Income Program’ button.
If there is a dividend payment or other distribution made while your securities are on loan, you will receive an equivalent cash payment. However, generally loans will be terminated prior to dividends being paid and you will receive the dividends as usual. Be aware that such income may attract tax consequences and consider whether it’s appropriate to obtain professional tax advice. While a loan is outstanding, and until loaned securities are credited back to your account upon termination of a loan, you will lose your right to vote in respect of the loaned securities.
When your securities are on loan there is also a risk that the borrower is unable to return them. To protect lenders, assets valued at least the same value of the borrowed securities will be set aside in a separate collateral account. In the event that the borrower defaults on the loan or your securities, you (the lender) can be repaid from the collateral. When you sign up to Stake, DriveWealth will seek your consent and authority to establish and maintain such a collateral account for the benefit of all Stake’s customers whose US securities are lent.
Please be aware that SIPC may not protect you with respect to loaned securities once such securities are removed from your Stake account, and therefore, the collateral held may constitute the only source of satisfaction of DriveWealth’s obligations in the event DriveWealth fails to return the loaned securities.
Information on Stake is not an offer, solicitation of an offer, or advice to loan securities.
Stake sources information such as financial data, market data and depth, course of sales, analyst ratings and stock ratings (Information) from third party vendors. Data is not delivered on a real-time dynamic streaming basis. System availability and response times, data, liquidity, execution speed and price are subject to market conditions, order size, order types, any connection limitations and other factors. No representation or warranty is made as to the accuracy, completeness or timeliness of the Information and Stake does not accept any responsibility arising from errors in, or omissions from, the Information.You agree that such Information is for informational purposes only and is not intended to constitute a recommendation or general or personal financial advice and that as a result of having access to or using the Information, no agency or advisory relationship is created between you and Stake. Neither Stake nor any third party provider is responsible for any investment decisions or for any damages or other losses resulting from the use of the Information.
Waitlist and Promotions
Getting “early access” to a promotion with Stake is defined as signing up with a valid email address on a waitlist for an upcoming feature or promotion. Early access to the promotion or feature with Stake is not an offer or solicitation of any financial services or any confirmation that a trading account with Stake or any account with any of its partners has or will be opened.
Priority on any waitlist or promotion may be given to existing customers of Stake.
Stake may from time to time run promotions or programs offering rewards or incentives. If you elect to enter such an offer, you agree to the terms and conditions that apply to such promotion or program.
Stake may from time to time offer zero or discounted brokerage on its platform, including in respect of certain promotions and Stake Rewards. Other fees still apply including (but not limited to) foreign exchange, account, alternative dispute resolution, securities and exchange commission & FINRA (regulatory sell side) fees. Please see our pricing information for more detail on all applicable fees. Pricing may be updated at any time and customers will ordinarily be provided with 20 days notice.
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