Sydney fintech Stake is starting its $0 brokerage US share trading service
Sydney startup Stake will launch its $0 brokerage US share trading service within the next few days, giving ordinary Australians a low-cost opportunity to invest in brands like Amazon, Facebook and Tesla.
The fintech first revealed in June its plans for the new service but the details hadn’t been settled at the time. Now founders Dan Silver and Matt Leibowitz have revealed to Business Insider that the only user fee would be 70 basis points on the foreign exchange rate when loading up and withdrawing from the US dollar trading account.
Stake had also previously flagged intentions to introduce paid services on top of the basic product, but Leibowitz now confirmed that only the “no brokerage” service would go live to start with.
“We’ll start with zero [brokerage]. Make it very vanilla and very clean – less is more in our books,” he told Business Insider.
“And we’ll learn from what the user wants. It’s hard to work out what [paid] value they want until they’re actually using the site and interacting with it.”
While public access is anticipated in the coming days, some users are already trading on the zero brokerage platform.
“We’ve given our early adopters – those who signed up [their interest] before July – access to zero [brokerage] already… And the top referrers on our waiting list have also been given the option.”
Stake doesn’t hold any customer funds itself but rather has packaged together the local account provider, foreign exchange merchant and the US trading platform to allow a customer access to all three in one place — to make starting up and transactions easier.
The local startup has managed to get a head start on US millennial share trading app Robinhood, which has previously publicised Australian expansion plans but has not yet launched locally.
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