What is your AUD <-> USD conversion cost?
We always follow the Currency Cloud market fx rate and charge a 0.5% fee. To contextualise how this conversion works, we've provided an example. Assuming an exchange rate of 0.72, without any fees this would convert at $1000 AUD <-> $720 USD. With fees however, this looks like the following: AUD -> USD BPS : 0.72 * 0.5% = 0.0036 = 36bps FEE : $1000 AUD * 0.0036 = 3.6 USD (5 AUD) TOTAL : $1000 AUD * (0.72 - 0.0036) = $716.4 USD
USD -> AUD INVERSE : 1 / 0.72 = 1.3889 BPS : 1.3889 * 0.5% = 0.00694 = 69.4 bps FEE : $720 USD * 0.00694 = 5 AUD (3.6 USD) TOTAL : $720 USD * (1.3889 - 0.00694) = $995 AUD

Most of our competitors display AUD -> USD bps. In this example it would be 36bps.

How long does AUD <-> USD conversions take?
Our AUD -> USD conversion is instant, we allow you buy shares with the money immediately but will need 2 days for the underlying money to clear before you can transfer out (make a USD -> AUD transfer).

Our USD -> AUD conversion takes 2 days to clear.

AUD/USD Conversion cost & time

Why invest in US shares?
Please check out our blog article here.

Type of accounts supported
For now we only support onboarding Individual, Joint and Minor for US trading, with supporting other types of account being our priority in the coming months.

Fractional Investing
US shares will be in fractionals, you will be able to buy/sell in fractional units. An example would be if AAPL is $130 per unit, you can buy 0.1 unit for $13.

Brokerage Cost
Brokerage cost is AU$6.50. This is always deducted from you Primary Cash (AU) account in AUD.

Limit Order

Limit order feature is not available on US holding Trade currently.

W8-BEN tax form
The W8-BEN tax form is filled and filed on your behalf by our brokerage partner when you open a US investment account with us! No further action needs to be taken.

Are the stocks held under my name? or Pearler?
Its actually held under our brokerage partner in your name. Here is a snippet of the legals from our brokerage partner (DriveWealth) :
DriveWealth custodies Securities and Other Assets held in your Account at approved Depository Trust Company Custodians (“DTC Custodians”). DriveWealth holds all positions in nominee name with the DTC Custodians; DriveWealth maintains all records related to the holdings in your Account.
Insurance
Our brokerage partner (DriveWealth) is a US broker-dealer registered with FINRA (US regulator) and is a member of SIPC. If Pearler fails, you would still have access to all your cash and securities. Drivewealth will establish contact with you on how to proceed. If Drivewealth fails, the SIPC gets involved and appoints a trustee to manage the liquidation of the firm and protect customers cash and securities up to $500,000. ($250,000 for claims for cash).

Share Registry
Since the shares are held custodially by our US brokerage partner, you won't receive any emails from the relevant share registry.

Dividends
You will receive any dividend of a share in proportion to your holding (accounts for fractional units) and it will go into your Primary Cash (USD) on Pearler.

How does Pearler handle AUD <-> USD conversion? What are the fees?
Check out this article for an in-depth explanation.

What happens to my USD when I sell shares?
Your USD will remain in Primary Cash (USD) where you can use to buy other US shares, if you want it back as AUD in Primary Cash (AUD), you will have to make a USD -> AUD transfer which will take 2 business days.

Autoinvest US shares
You can now autoinvest into US shares just like you would with AU shares. We charge the same fee for AUD to USD conversion as if you manually transfer yourself.

Can I transfer US shares to Pearler?
Yes you can, please check out this article for more information.

Upcoming features
Onboarding more account types (only Individual/Joint/Minor for now)

US Investing FAQs

From a practical standpoint, investing in US shares versus AUS shares looks similar on the Pearler platform. Both require setting up a Pearler Shares investment account and you place orders as normal with a brokerage fee of $6.40 AUD (plus 0.5% per FX conversion for US shares).

Some Pearler investors choose to invest in US shares as it gives them access to more US companies. You can also invest in US holdings through ASX ETFs, however your options for investing in the US market are limited. Some companies are only available by investing in direct US shares.

The other difference is ownership. Investing in AUS shares on Pearler is CHESS-sponsored, which means you hold your shares directly with the ASX. When you invest in US shares on Pearler, they’re under a custodial system, so a custodian broker holds the shares on your behalf. In the first case, you’re listed as the owner. In the second, the custodian is listed as the owner and you’re the beneficiary. The good news is the W8-BEN tax form is completed for you by the broker when you open a US account.

Speaking of taxes, another key difference is the tax treatment of your investments. When you invest directly in US shares, there are additional US tax implications to be aware of. So, as we always say, do your research!

For more information on investing in US shares, read our US Investing FAQs.

What's the difference between investing in US and AUS shares?

Activate US investing by setting up a Pearler Shares investment account.

Place orders as normal, and Currency Cloud will take care of the currency exchange for you automatically. Please do note that US order brokerage will always be deducted in AUD from your Primary cash AU account.

US market (NYSE/NASDAQ) opens at 1:30am - 8am Sydney time during the wintertime (First Sunday in November to the second Sunday in March) or at 11.30pm - 6am Sydney time during the summertime (First Sunday in April to the first Sunday in October).

US Investing FAQs