Free Post Week 4 — June 2026

All six platforms compared: the table, the trade-offs, and which combination makes sense

Three weeks of platform analysis, brought together in one place. Here is how they stack up and how to think about combining them.

Alan Gilbert The Southern Portfolio · Auckland, New Zealand

Over the past three weeks I have covered why the platform decision matters more in New Zealand than almost anywhere else, why PIE fund platforms handle FIF differently from direct investing platforms, and what the trade-offs are for each of the six platforms most NZ investors will encounter. This week I am bringing it together in one place.

The comparison table below covers the five criteria that matter: fees, fund access, FIF handling, custody, and tax reporting. After that, six scenarios that map investor profiles to platform combinations. The goal is not to tell you what to do but to give you a framework for making a deliberate decision rather than defaulting to whatever you signed up for first.

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The comparison table

A few notes before the table. Fee structures change, so verify current details directly with each provider before making decisions. The FIF handling column reflects whether the platform's default structure handles FIF internally at the fund level or passes the obligation to you directly. Tax reporting reflects whether the platform generates IRD-ready FIF reports automatically.

Platform	Type	Fees	Fund access	FIF handling	Custody	FIF report	KiwiSaver
InvestNow	PIE	No transaction fees on most funds	Smartshares, Kernel, Milford, Generate + more	Internal — fund pays FIF	NZ regulated	N/A	Yes
Kernel	PIE	~0.25% annual fee, no transaction fees	Kernel index funds only	Internal — fund pays FIF	NZ regulated	N/A	Yes
Sharesies	Direct	0.5% per trade capped at $5 (NZ/AU); subscription for US	NZ, AU, US shares and ETFs	You pay FIF directly if over $50k	NZ regulated	Yes	Yes
Hatch	Direct	Flat fee per transaction	US shares and ETFs only	You pay FIF directly if over $50k	DriveWealth (US)	Yes	No
Stake	Direct	Subscription + transaction fees	US and AU shares and ETFs	You pay FIF directly if over $50k	US custodian	Partial	No
Interactive Brokers	Direct	Low per-trade fees; competitive at scale	Global markets, options, futures, bonds	You pay FIF directly if over $50k	US/global custodian	Manual	No

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Which combination makes sense

Most investors do not need to choose just one platform. The more useful question is what role each platform plays in a portfolio and whether your current setup reflects a deliberate choice or a historical accident. Here are six scenarios that cover most NZ investor profiles.

Scenario 1

Just starting out, portfolio under $10,000

Platform: Sharesies alone. The fee structure works at this size, the experience is the best in market for beginners, and getting started and building the habit matters more than optimising costs. Once you have built confidence and your portfolio reaches $10,000 to $15,000, reassess.

Scenario 2

Building a long-term portfolio, $10,000 to $100,000, no interest in stock picking

Platform: InvestNow or Kernel as the primary platform. Both handle FIF internally through NZ-domiciled PIE funds, charge no transaction fees on regular contributions, and suit a systematic buy-and-hold approach. Choose InvestNow if you want access to multiple fund managers. Choose Kernel if you prefer a cleaner interface and are comfortable with a more focused fund range.

Scenario 3

Building a long-term portfolio and want direct US equity exposure

Platform combination: InvestNow or Kernel for the PIE fund core, plus Hatch or Stake for direct US equity exposure. Keep overseas direct holdings below the $50,000 FIF threshold if you want to avoid the FIF obligation, or manage FIF directly if you are comfortable doing so. The two-platform approach is more common than most investors realise.

Scenario 4

Portfolio above $100,000, comfortable with complexity

Platform combination: InvestNow or Kernel for PIE fund exposure, plus Interactive Brokers for direct international market access. Interactive Brokers' FX conversion costs are significantly lower than retail NZ platforms at this portfolio size, which compounds into real savings over time. Factor in the additional tax reporting work or the cost of an accountant who can handle it.

Scenario 5

Already using a bank KiwiSaver and a retail platform, wondering if you are overpaying

Start here: Check your KiwiSaver PIR rate and your KiwiSaver fee. These two things are where most NZ investors are losing money without knowing it. The PIR threshold changes in April 2025 mean a meaningful proportion of investors are on the wrong rate. And the difference between a 0.93% bank fund and a 0.25% low-cost fund compounds to tens of thousands of dollars over a career.

Scenario 6

Approaching or above the $50,000 FIF threshold in overseas holdings

Do this first: Calculate your FIF position before the next tax year starts. The threshold applies across all your overseas holdings combined, not per platform. If you are near or above it, understand whether FDR or CV gives you a better result for your specific situation — in a flat or down year, CV can be meaningfully lower than FDR. The calculator below does this in about two minutes.

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Free NZ Tool

FIF Tax Calculator — FDR vs CV, all three IRD methods

Enter your overseas portfolio value and the calculator works out your FIF income under FDR, CV, and the Cost method, then shows you which is lower. Updated for 2025-26.

Calculate my FIF tax →

The questions worth asking about your current setup

If you are already investing and have been for a while, the platform comparison above is less useful than a simple audit of your current position. Here are the four questions I think every NZ investor should be able to answer about their own situation.

Four questions worth answering

What is your KiwiSaver PIR rate, and is it correct? The April 2025 threshold changes mean a significant proportion of investors are on the wrong rate. It takes 60 seconds to check and your provider will not do it for you.

What is your KiwiSaver total annual fee, and how does it compare to low-cost alternatives? A 1% fee difference on a $50,000 balance compounds to more than $130,000 over 30 years. Most people do not know what their fund charges.

What is the combined cost basis of your overseas holdings, and does it exceed $50,000? FIF applies to your total overseas holdings at cost across all platforms. Many investors are over the threshold without realising it.

Are you using the right FIF calculation method? Most investors default to FDR without checking whether CV would produce a lower result in their specific year. The answer changes depending on how your portfolio performed.

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Free NZ Tool

PIR Calculator — check your KiwiSaver tax rate

Find your correct PIR under the updated April 2025 thresholds. If you are on 28% and should be on 17.5%, this tells you in 60 seconds.

Find my PIR →

The investor who understands their platform structure, their FIF position, and their KiwiSaver fee is already ahead of most people in this market. None of it is complicated. It just requires knowing where to look.

That wraps up the four-week platform series. Next week I will move on to portfolio construction: how to think about asset allocation as a NZ investor, what the right split between NZ, Australian and international equities looks like, and why the conventional US-centric advice on this question does not translate directly to our situation.

Not financial advice. The Southern Portfolio is an educational newsletter. Nothing here constitutes financial advice under the Financial Markets Conduct Act 2013. Always consult a licensed financial adviser before making investment decisions. Platform fee structures and features change regularly — verify current details directly with each provider before making decisions.

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Portfolio construction for NZ investors: asset allocation, the NZ home bias problem, and how to think about the split between local and global

Why the conventional advice on asset allocation does not translate directly from the US context, what the right split between NZ, Australian and international equities looks like, and how to build a portfolio that is genuinely diversified from here. Free for all subscribers.

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