how to invest in stock market nz

• American Depositary Receipts. U.S. investors can go the traditional route and invest in New Zealand through American depositary receipts.
• Mutual Funds. Investors looking to own a basket of New Zealand stocks without having to make the capital commitment of owning five, 10 or more equities can consider mutual funds.
• Invest Directly. Most brokerage firms, even the online, discount variety, offer investors the chance to trade international markets.
• Try An ETF. As of April 2013, there is one exchange traded fund available to U.S. investors that focuses exclusively on New Zealand.

Full Answer

Should you invest in the NZX or the US markets?

Enormous potential for investments – the NZX offers around 200 companies and ETFs (and arguably, many small companies listed don’t do much). Investing in the US markets opens up over 3,500 companies and ETFs. Low fees – before 2018, investing in US markets was arguably expensive and inaccessible.

What does the NZ Top 50 invest in?

The NZ TOP 50 invests in the fifty largest listed New Zealand companies (for example, Vector, Z Energy, Heartland Bank, as well as relatively larger companies such as A2 Milk, Auckland Airport and Fisher & Paykel Healthcare).

How do I buy and sell shares in NZ?

The New Zealand stock exchange is the NZX and the Australian stock exchange is the ASX. You buy and sell shares through a stock broker To buy and sell shares on the stock exchange (called ‘trading’) you’ll need to place an order through a stock broker – this is a company licensed to give investors access to the stock exchange.

Should you buy these 10 best performing shares on the NZX?

These 10 best performing shares on the New Zealand Exchange (NZX) are starting points for your own research and should not be taken as advice to buy any particular stock. How were these shares picked? The shares listed here are those that have seen the largest increase in share price in the last 3 months.

How do I invest in NZ stocks?

Online Share Trading is an easy and cost-effective way to buy and sell New Zealand and Australian shares....Buying shares onlineStart a buy order. Select Buy, pick your stock exchange (NZX or ASX), and choose a stock by typing in the company name or entering the stock code.Enter the details. ... Confirm your order.

How do beginners buy stocks?

The easiest way to buy stocks is through an online stockbroker. After opening and funding your account, you can buy stocks through the broker's website in a matter of minutes. Other options include using a full-service stockbroker, or buying stock directly from the company.

What stocks should I invest in NZ?

Top Shares to Buy in New Zealand 2021British American Tobacco – Buy with 0% Commission Now.BP – Buy with 0% Commission Now.Amazon – Buy with 0% Commission Now.Microsoft – Buy with 0% Commission Now.Tesla – Buy with 0% Commission Now.Spark NZ – Buy with 0% Commission Now.Air NZ – Buy with 0% Commission Now.

How do I start investing in NZ?

6 steps to get your money SortedStart your emergency fund.Get your KiwiSaver on track.Tackle your debt.Cover your people, money, stuff.Work out your retirement number.Set your goals, then reach them!

How much money do I need to invest to make $1000 a month?

Assuming a deduction rate of 5%, savings of $240,000 would be required to pull out $1,000 per month: $240,000 savings x 5% = $12,000 per year or $1,000 per month.

How much money can you make from stocks in a month?

The short answer to the question of, “how much can you make from stocks in a month?” is there is no max. You could make an infinite amount, theoretically. But you also could lose 100% of your investment as well, so it really is a risk reward situation.

What can I invest in 2021 NZ?

Our five companies in 2021 were:EBOS Group (+37.6%)Fisher & Paykel Healthcare (-2.9%)Mercury NZ(+4.6%)Mainfreight (+48.6%)Ryman Healthcare (-13.5%)

How much should a beginner invest in shares?

As mentioned, you can start stock trading with just Rs 10. But it is practical to invest a decent sum—say Rs 10,000—as a newbie. After you get to know the market and gain more confidence, you can gradually increase the amount.

Are Sharesies worth it?

Sharesies is ideal for smaller scale investors who want access to US and Australian shares as well as shares in NZ. With no required minimum balance, no minimum trade amount, fractional share trading, and an easy to use website, Sharesies makes investing easy for everyone.

How can I invest 100 dollars to make money?

If you can spare $100 a month for your future, here are some ways in which you can invest that money.Build a Portfolio: Fractional Shares, EFTs and Bonds.Just Trade Fractional Shares.Earn Interest With a High-Yield Savings Account.Start an Emergency Fund.Save for a Child's Education.Start a Brokerage Account.More items...•

What is the best way to invest money in NZ?

PropertyBuying houses is a longstanding New Zealand favourite investment option. ... Most investor mortgages now require 35% or 40% of the price of the house upfront (but not always), while some investors also go for 'interest-only' loans. ... The 2020 Covid-19 events demonstrated not even property is a 'safe' investment.

Is ASB good investment?

A low-risk investment worth considering Although ASB delivered its lowest distribution ever last year, it's still an investment vehicle to consider, as it's relatively low-risk and produces consistent returns.

What exchanges do New Zealand stock trading sites offer?

This can vary wildly depending on the specific brokerage site you sign up with. In the case of eToro, Plus500, and IG - you will have access to doz...

Will I earn dividends when trading stocks in New Zealand?

If you want to earn dividends, you will need to invest in the stock in the traditional sense. If you plan to trade stocks via CFDs, you won't be en...

What New Zealand payment methods do online stock brokers support?

Most NZ stock trading sites support a local debit/credit card and bank account. Some brokers also support e-wallets like Paypal.

How do I short-sell a company in New Zealand?

If you want to short-sell a company - regardless of the exchange in which it is listed, you will need to use an online broker that supports stock C...

The New Zealand Stock Exchange (NZX)

The NZX Market is the major equities board. It lists over 200 companies including many of New Zealand's longest-established businesses and a number from overseas. Collectively these companies are the cornerstone of both the NZX and New Zealand's economy.

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Complete a short form to connect with one of our Investment Market Managers. They can answer any queries you have and keep you informed about exclusive events in your country.

The share buying process

Investments in the New Zealand Stock Exchange can be made directly through an NZX registered broker. You can find a list of registered brokers on their website.

Sharemarket regulation

New Zealand has a range of security laws regulating how investments are offered to investors, and how advisors should conduct themselves.

How long does it take to register a New Zealand stock?

In most cases, the end-to-end registration and deposit process rarely takes more than 10 minutes.

Why is the phenomenon suited for those of you that plan to actively trade stocks throughout the day?

This is because you will be looking to make ultra-small gains – but on a frequent basis. In doing so, you will also have the ability the short-sell companies, as well as apply leverage.

What is etoro stock?

eToro is an online stock, CFD, and forex broker that is hugely popular with NZ residents. Not only does the platform allow you to buy and sell shares in the traditional sense, but you can also trade over 800 stocks. This includes companies listed on stock exchanges in London, New York, Toronto, Tokyo, Hong Kong, and many others.

What is IG trading?

In terms of what you can trade, IG offers traditional share dealing services, stock CFDs, and a fully-fledged spread betting facility. If you’re not sure which investment medium is best for you, IG also offers a demo account. This allows you to buy, sell, and trade stocks without risking your own capital.

What is technical analysis in stock trading?

After that, there is nothing else to do until you decide to sell your investment back to cash. However, stock trading requires an in-depth knowledge of how technical analysis works. This is the research process that involves analyzing charts, with the view of predicting which way the stock in question will move.

Where is IG trading based?

IG is an established brokerage platform that first opened its doors back in 1974. Based in the UK – the broker is home to over 178,000 traders, many of which are based in New Zealand. You can easily open an account from the comfort of your home – and deposit funds with your local bank account or debit/credit card.

Do you need to be actively trading?

You Will Need to be Actively Trading. Make no mistake about it – stock trading is not suitable if you simply want to buy some shares and hold on to them for a number of years. On the contrary, you will need to be actively buying, selling, and trading stocks and thus – dedicate ample time to the process.

When is the NZX50 open?

Unlike the NZX50 which is open from 10am to 4:30pm, the US market is open when most of New Zealand is asleep (2am to 10am), so you'll need to factor that in when deciding to buy and sell shares.

How much does hatch charge to convert NZD to USD?

Most platforms use the foreign exchange spot rate (the market rate that banks use) and charge a fee on top as a way to make money. Hatch charges 0.50% while others charge 1.00% or even 1.50%.

Is stake an ETF?

Yes – Stake, Sharesies and Hatch all offer a number of ETFs on their platforms, and many New Zealand fund managers offer investments which invest in US-based companies. A good place to start is looking at the ETF options available of Sharesies, Hatch and Stake, as well as international funds listed on InvestNow.

How to Buy Shares Now? 5 Quick Steps

Choose a 0% commission New Zealand stock broker – we recommend registering with Capital.com.

How to Buy Shares – Step by Step Guide 2021

If you have read our guide up to this point, you should now have a firm understanding of how stocks and shares work, so know you need to learn how to actually buy them. This step-by-step walkthrough below is based on our top-rated broker Capital.com, although you are free to go with any platform of your choosing.

Where to Buy Shares – Best New Zealand Share Dealing Platforms of 2021 – Our Picks

Don’t have time to research a broker yourself? If so, below you will find our list of the best New Zeland share dealing platforms of 2021. Each broker is licensed by one or more regulatory body, easily allows you to deposit and withdraw funds with an NZ debit/credit card, and gives you access to lots of international stock exchanges.

Learn the Basics of Buying Shares in NZ

In a time not so long ago, buying shares in New Zealand was a somewhat cumbersome task. This is because you would need to open an account with a traditional stock broker, and subsequently discuss your share dealing requirements with them over the phone.

What to Consider Before Buying Shares in New Zealand

Before taking the plunge, there is a range of considerations that you need to make. This is to ensure that you do not go into the online stocks and shares space without the required know-how. With this in mind, below you will find some handy tips that will ensure you get your online share dealing endeavours off on the right foot!

Other New Zealand Stock Brokers to Consider

While the above three New Zealand stock brokers currently lead the way in the share dealing space, there are many others consider.

How to Pick a New Zealand Stock Broker

If you want to buy shares in New Zeland, you will need to use an online share dealing platform. In its most basic form, this will give you access to leading stock markets like the London Stock Exchange, New York Stock Exchange, and the NASDAQ.

How to manage risk in investing?

Ways to manage risk when investing in shares 1 Diversify your share holdings. You can spread your risk by investing in a variety of shares from different companies and industries. This means if one industry or company goes down, you may still have other shares to balance out the losses. 2 Diversify your investments. You can spread your risk further by investing in more than just shares. For example you may like to explore other investment options such as fixed interest securities, term investments and exchange traded funds, which are available through ASB Securities. 3 Focus on the long term. Because share prices may go up and down in the short term, you don’t want to be forced to sell if you need to free up money, especially when prices are low. Historically, money invested in shares has tended to hold or grow in value faster than inflation. 4 Do your research. Before you invest, it’s a good idea to research the company and industry and find out how their shares have been performing, although this is not an indication of future performance. ASB Securities Online Share Trading gives you access to a range of reports and research tools to help you make informed choices.

Why do people invest in shares?

There are two main reasons people choose to invest in shares over the long term. Firstly, shares have the potential to increase in capital value over time.

How are share prices influenced?

Share prices are influenced by things like the performance of a company, general economic conditions, and what the market (buyers and sellers) think the shares are worth. News about a particular company may be evaluated by investors, and how they react could cause share prices to suddenly go up or down.

How to spread risk?

You can spread your risk by investing in a variety of shares from different companies and industries. This means if one industry or company goes down, you may still have other shares to balance out the losses. Diversify your investments. You can spread your risk further by investing in more than just shares.

What is the name of the exchange where shares are publicly traded?

The stock exchange is where shares are publicly listed and traded. Each share has a buy price (called a ‘bid’) and a sell price (called an ‘ask’). The New Zealand stock exchange is the NZX and the Australian stock exchange is the ASX.

Why do shares go up and down?

This is when the share price goes up and down. This could be due to factors such as changes in the company’s profits or changes in economic conditions. If share prices fall, you would see a change in the market value of your holdings but you wouldn’t actually lose money unless you sold your shares. Absolute risk.

What is a share in trading?

This guide could get you started and help you decide if share trading is right for you. A ‘share’ is a small unit of ownership in a company. When you buy a share, you’re buying a piece of a company.

American Depositary Receipts

U.S. investors can go the traditional route and invest in New Zealand through American depositary receipts. These are the shares of New Zealand firms trading on U.S. exchanges.

Mutual Funds

Investors looking to own a basket of New Zealand stocks without having to make the capital commitment of owning five, 10 or more equities can consider mutual funds.

Invest Directly

Most brokerage firms, even the online, discount variety, offer investors the chance to trade international markets. This is the way to go for investors who want access to a larger amount of New Zealand stocks. However, not all brokers offer their U.S. clients access to New Zealand.

Try An ETF

As of April 2013, there is one exchange traded fund available to U.S. investors that focuses exclusively on New Zealand. As is the case with mutual funds, there are other ETFs that offer combination exposure to Australia and New Zealand and some that feature New Zealand under the Asia-Pacific umbrella.

What platforms allow US share trading in New Zealand?

Other platforms allow US share trading in New Zealand and also provide access to global markets. These providers include: Sharesies. You can use Sharesies to invest in shares, ETFs and managed funds, providing access to over 3,000 companies and funds in New Zealand and the US. InvestNow.

How to buy US stocks?

How to buy US shares: Quick guide. 1. Compare online share trading platforms with access to US stocks. 2. Open your account by providing your name, contact details and proof of ID. 3. Fund your account by transferring money from your bank account. 4.

How to invest in US companies?

These include: US shares. The most common way to invest in US companies is to buy and sell shares listed on the New York Stock Exchange or the NASDAQ. ETFs.

What is smartshares?

Smartshares. Smartshares is an online investment platform that provides access to more than 30 ETFs, including 5 based on US shares. ASB Securities. You can use ASB Securities’ broker team to gain access to international markets, while NZ and Australian shares are also available.

What is managed fund?

Managed funds. A managed fund allows you to combine your money with other investors, with the balance then invested on your behalf by a fund manager. There are many managed funds that invest in US shares and stocks from around the world.

Is buying US stocks risky?

Just like any other type of investing, buying and selling US stocks comes with a range of risks attached. The biggest issue to be aware of is the potential to lose some or all of your investment, but there are other specific risks when trading US shares.

How were these shares picked?

The shares listed here are those that have seen the largest increase in share price in the last 3 months. To avoid smaller, more speculative shares, we only include companies with a market cap of more than $5 million.

What you should know before buying NZX stocks

There’s no single winning strategy to finding what experts might call the best performing shares on the NSX, because the most important considerations are your own goals and circumstances. But that shouldn’t discourage you from doing your homework and investing.

Enprise Group Limited (ENS)

Enprise Groupe is a high-tech software and services investment company.

ArborGen Holdings Limited (ARB)

ArborGen is the largest commercial global seedling supplier and a provider of advanced genetics for the forest industry.

The New Zealand Refining Company Limited (NZR)

The New Zealand Refining Company is the country’s only oil refinery and the leading supplier of refined petroleum products to the New Zealand market, including petrol, diesel, aviation fuel and other products.

Cavalier Corporation Limited (CAV)

Cavalier Corporation operates across the soft flooring market, buying wool, producing yarn, and designing and make broadloom carpet. The company exports around the world.

Marlin Global Limited (MLN)

Marlin Global is an investment company that invests in growing international companies, excluding New Zealand and Australia.

The New Zealand Stock Exchange

The Share Buying Process

• Investments in the New Zealand Stock Exchange can be made directly through an NZX registered broker. You can find a list of registered brokerson their website. Many managed funds are listed and traded as Exchange-Traded Funds (ETFs). Others are offered by fund managers - your legal or financial adviser will be able to help you. To buy shares in a p...

See more on newzealandnow.govt.nz

Sharemarket Regulation