Stakeshop Sets Up Brokerage Service In Australia
- The US based forex broker has set up a service in the Australian continent with over 360,000 new clients already
- Stakeshop PTY Ltd has launched its AUD 3 ($2) brokerage which is expected to disrupt the brokerage market considerably in Australia
- Reuters report that Stakeshop will be listing stocks on local exchanges with the discounted brokerage service stirring up the competition
The forex broker, Stakeshop PTY Ltd is going for global expansion in a big way with the launch of a new discounted brokerage service in Australia. According to a report in Reuters yesterday, the US based forex broker will be listing stocks that are listed on local exchanges. Analysts predict that the entry of this discount broker will be stirring up the Australian markets considerably.
“I don’t think there’s been [a]material change in the industry since brokerages went electronic in the late ‘90s and early 2000’s. So I think 25 years on, this is a big moment,” Matt Leibowitz, Stakeshop’s Founder and Chief Executive, commented on the launch.
The startup is backed by Tiger Global and has been identified by broker-dealer Finclear for listing Australian stocks. The trading of these ASX listed stocks will be CHESS sponsored. This means that traders will be executing trades under their own name and will then receive delivery of the said stocks.
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Forex Broker Stakeshop Is Seen As A Disruptor In The Market With Its Commission Free Services
The forex broker Stakeshop already has considerable presence in Australia. Beginning operations in 2017, the broker offered trading services of Us-listed stocks to investors in Australia and New Zealand.
Stakeshop was a boon to new customers with commission free brokerage services. It made its money by charging a 0.7% fee when traders transferred funds from AUD to USD.
Stakeshop CEO Leibowitz also revealed that the platform already has a staggering 360,000 customers. Monthly trading volumes have reached an impressive $1 billion.
The forex broker will begin offering commission-free services until the end of the year for Australian trades. A charge of AUD 3 will be introduced at the end of the promotional period. This remains much lower than the dominant forex broker CommSec which charges a minimum commission of AUD 10.
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Stakeshop’s Business Model Similar To Other European and US Based Brokers
Stakeshop’s offering will be the cheapest brokerage services offering in Australia with its discounted business model. Presently, the Australian brokerage market has long been the dominion of CommSec, a Commonwealth Bank of Australia subsidiary.
“I think this [model]will accelerate us towards the top,” Leibowitz added. Stakeshop’s model is a tried and tested one with startups such as Robinhood, BUX and FreeTrade launching similar disruptive offerings in the US and European markets.
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