Australian Online stock broker Stakeshop Pty Ltd., announced on Monday that it plans on launching Australia’s cheapest brokerage service. The company said that the brokerage service will be available for as low as A$3 ($2) and is a challenge to the country’s top lender – CommSec, a subsidiary of the Commonwealth Bank of Australia.
Stakeshop Pty Ltd., which operates under the name Stake, is backed by Tiger Global and its aim of launching the country’s cheapest brokerage service is to compete with the country’s biggest online and mobile brokerage services that have reigned in the local market since brokerage service came to the internet.
The company wants to bring “material change” to an aging sector that has been on for the longest time; it wants to bring new methods to an old system. Speaking about the company’s decision to launch the country’s cheapest online and mobile brokerage service, Matt Leibowitz – the company’s founder and CEO said that “I don’t think there’s been a material change in the industry since brokerage went electronic in the late 90s and early 2000s. So I think 25 years and on, this is a great moment”.
In May this year, the company raised A$40 million in a Series A funding round. The company came into existence in 2017 and was founded by Matthew Leibowitz, Dan Silver, and Jon Abitz. The company is part of an increasing number of online brokerage services that provide commission-free retail brokerage services for US-listed stocks.
Stakeshop has had impressive moments, out of which its recently concluded series A round is part of. The A$40 million series A round was led by Tiger Global and the round also saw top-notch participants. The company has more than 360,000 people using its platform and claims that trading on its platform has grown about 100 times to more than $1 billion each month since it became operational, its CEO said.
The company mentioned that Australian-listed stocks will be powered by Finclear and that trading in stock on the local ASX Ltd. exchange will be done under a person’s name and not a separate legal entity – a system used by low-cost brokers to reduce costs.
Matthew Leibowitz said the low cost of A$3 will help take the company to the top of the mobile brokerage service pyramid. Specifically, he said that “I think this will accelerate us towards the top. We’ll hopefully be banging down the door of number one, that would be the goal.