Kestrel Direct review
A full-service broker with excellent research and support, priced for active or larger accounts rather than occasional investors.
What we liked
- Institutional-grade research and analyst access included with the account
- Responsive support by phone, chat and email, including weekends
- Broad instrument range covering equities, bonds, funds and listed options
What we did not
- Quarterly account fee applies below a minimum balance
- Commissions on smaller trades are high relative to discount brokers
- Foreign-exchange spread of 0.75 per cent is wide
Kestrel Direct is the fictional retail arm of Kestrel Capital, used here to demonstrate our rating method. Nothing below describes a real broker.
Fees
Kestrel Direct is not a discount broker and does not pretend to be. Equity commissions are charged per trade with a minimum that makes small trades expensive; an investor placing frequent orders of a few hundred will pay several times what they would at a commission-free rival. Accounts below a minimum balance are charged a quarterly fee, which is waived above the threshold or for accounts that trade regularly.
The foreign-exchange spread of 0.75 per cent on international trades is the widest among the brokers we have scored this year. Fund dealing is free, which partly offsets the picture for investors who hold funds.
Platform
The platform is capable and stable rather than sophisticated. Order types cover the essentials, charting is adequate, and the reporting is the best we have seen: consolidated tax reports, performance attribution and a clear view of income are all built in. The mobile app matches the web platform in function.
What sets Kestrel Direct apart is the research. Account holders get the firm's equity and credit research, model portfolios and the ability to put questions to analysts through a scheduled call. For investors who would otherwise pay for research separately, this is worth a meaningful sum.
Safety
Kestrel Direct is authorised and regulated, holds client assets in segregated accounts and is covered by the applicable protection scheme. The parent group is a large, well-capitalised institution. We found no enforcement actions against the retail unit in the past five years. The firm is currently subject to a competition review in connection with a proposed merger, which does not affect the safety of client assets.
Verdict
An investor with a larger balance who values research and support will find Kestrel Direct worth its costs. A smaller, cost-conscious investor will not. The rating reflects strong platform, safety and service scores against a weak fee score.
Reviews are independent and nobody pays for a score. Nothing here is investment advice; check that any provider is authorised in your country before you deposit money.