Webull launches SMSF account offering

Webull Securities Australia has launched a self-managed superannuation fund (SMSF) account offering, targeting cost-conscious younger investors.

Webull's SMSF offering has no monthly fees and features commission-free trading on ASX and US-listed exchange-traded funds (ETFs), which it claimed can reduce overall expenses, which, in turn, can help investors improve annual performance.

Webull Securities Australia chief executive Rob Talevski said while lower fees are attractive to SMSF investors, "the usual payoff is a no-frills trading platform."

For this reason, the company built a "full-service suite" that includes institutional-grade cash management, professional trading tools, and live support, alongside features which he said are typically "associated with platforms that charge high monthly fees."

"We believe that Webull offers the ultimate trading and investing portal to house and manage SMSF investors' cash, equity, ETF, warrants and options holdings, allowing investors to log in and get full control over their investments," Talevski said.

SMSFs remain the cheapest segment of the superannuation system, with average fees of 0.65% per annum, according to Rainmaker Information. That compares to 1% for MySuper products and a system-wide average of 0.93%, which continues to decline.

But whether greater control benefits younger investors, typically with lower balances, remains open to question.

In 2019, ASIC cautioned that many Australians were establishing SMSFs that were unsuitable for their circumstances, particularly those with low balances.

ASIC noted a "clear correlation" between SMSF size and member returns, citing a Productivity Commission report that found SMSFs with balances under $500,000 tend to underperform industry and retail funds after expenses and tax.

The SMSF Association, however, which commissioned research from the University of Adelaide, begged to differ. Its research found that SMSFs with a diversified asset allocation see improved investment performance compared to APRA-regulated funds once balances reach $200,000.

Webull said listed shares and cash are the two biggest asset classes for SMSFs in Australia, which has resulted in greater demand for services that support these investments.