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UK-based #Freetrade will be launching a new commission-free #platform for #trading stocks and shares. The company will be joining iDealing, another UK brokerage, that has opted for a zero commission model for stock trading.
Freetrade‘s mobile-first investment platform seeks to democratize investing and targets demographics that have been priced out of investing on the stock exchange notably due to costly broker fees. These include Millennials, which currently counts some 14.8 million individuals in the UK alone.
Freetrade’s mobile app was designed to make stock market investing more accessible for UK investors, the company says. It offers a user-friendly interface that makes it easy to search for companies that are trading on an exchange. The platform has no restriction around portfolio sizes and operates on a zero-commission model “so low value traders are not excluded.”
Additionally, the company will introduce fractional share dealing to the UK market, an option available in the US through the likes of DriveWealth and Stash Invest that has yet to be brought in the UK.
A fractional share is a share of an equity that is less than one full share. They are considered as an efficient way for investors to diversify every penny in their investment portfolio.
Furthermore, the Freetrade app will offer access to a network of independent financial advisors (IFAs) using a model similar to &8220;Uber and Airbnb.&8221; Independent advisors will be able to provide advice directly through the app, providing thus people new to trading with access to the same professional advice as more seasoned investors.
&8220;We came across the model they have in the US, and not being satisfied with simply bringing the same concept to the UK, we looked at how we could raise the bar,&8221; said Adam Dodds, co-founder of Freetrade.
&8220;Professional advice is an intrinsic part of making a good investment decision, and no one, as far as we can see, is offering low-cost, flexible access to IFAs and other advisers,&8221; he said.
&8220;We are creating a world-first – an Uber or Airbnb model for IFAs, alongside a zero commission trading model. With all these elements combined, we’re unlocking the stock market for millions of people, and creating an investment platform that will massively disrupt a huge market.&8221;
Freetrade is in the process of applying to the UK&8217;s Financial Conduct Authority (FCA) to become an execution-only broker. The company plans to start officially trading by early 2017.
Earlier this month, Freetrade announced that it has been selected to join Octopus&8217; #fintech program, Octopus Labs. Octopus is a UK fund management business managing over £6 billion worth of assets on behalf of over 50,000 retail and institutional customers.
The 12-week acceleration program will give Freetrade a workspace in Octopus&8217;s London headquarters as well as top level mentoring from financial industry experts and successful entrepreneurs.
The success of American companies such as Robinhood and Loyal3 has demonstrated that zero commission trading models can work. Robinhood Markets Inc., the Palo Alto-based company behind the popular commission-free stock trading app, has announced plans for international expansion in 2015. The company said it will start with Australia and China.
For US$ 10 per month, users can skip the three-day waiting period with instant deposits and reinvesting, trade 30 minutes before and 2 hours after the market is open, as well as borrow up to double the money in their account to trade on margin with leverage.
Featured image by ESB Professional via Shutterstock.com.
The post Freetrade to Launch Commission-Free Trading Platform in The UK appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
#Bitcoin and #blockchain #technology has gotten a major boost in Switzerland as Richard Olsen, the co-founder of OANDA and a former CEO of the North American FX Brokerage, is looking to harness the power of the technology to disrupt digital currencies and assets #trading.
Lykke, Olsen’s latest venture, has just released a mobile app for Android devices, which follows its iOS counterpart released in June. The #Lykke Wallet lets users trade digital currencies and assets, and come with a number of innovative features including instant settlement, direct ownership and zero commission.
Through the app, users can track asset prices in real time, check their balances, transaction history and blockchain details for all transactions, move assets to any bitcoin wallet, deposit and withdraw bitcoins via QR codes with no fees.
Signing up to Lykke is quite simple: you can use your smartphone camera to take pictures of yourself and your identification documents.
Founded in Zurich in 2015, Lykke aims at cutting out intermediaries in financial markets by allowing participants to transact in a peer-to-peer manner.
It uses a technology called ‘colored coins;&8217; tokens that represent assets. &8220;If a colored coin is hacked, the issuer can cancel the colored coin and issue a new colored coin,&8221; explained Olsen in a recent interview with Finance Magnates.
Another interesting feature is the #platform&8217;s use of multisignature (multisig) wallets, which require two signatures (one from Lykke, one from the client) to spend funds from a particular wallet.
The Lykke Exchange itself doesn&8217;t take custody of client funds but also holds one of the two needed private keys. If, for some reason, the Lykke Exchange goes down, there is a &8220;refund mechanism&8221; for the private key held by the company.
&8220;We have solved the cyber security issue that plagues bitcoin exchanges and offer restitution, which is more efficient than a depositor insurance scheme in #banks that is limited to specified amount of money,&8221; Olsen said.
Lykke is building a global marketplace where users would be able to trade all classes of financial instruments issued in the form of colored coins in order to enable direct ownership and immediate settlement on the blockchain.
In May 2016, Lykke closed a second seed funding round, welcoming new investors Marco Brockhaus and Carlo Koelzer, founding partner of 360T&8217;s Group Executive Board and member of Deutsche Börse Group Management Committee.
Lykke is currently on an Initial Coin Offering (ICO) which it plans to begin in September.
&8220;Blockchain is an opportunity for all businesses – literally all businesses can embrace the technology and seize the opportunities, such as issuance of new instruments, explosive growth of transaction volumes, new types of banking, investment management and insurance products – these markets have huge potential,&8221; Olsen said.
&8220;Companies that close their eyes to the new opportunities are at risk – they will be latecomers and will have to restructure, when revenues nosedive – a bad environment to embrace new business models.&8221;
If you haven’t seen the first trade execution on a chatbot, then watch this video. The first implementation of a basic stock trade execution via a chatbot comes out of a UK brokerage house and uses the Facebook Messenger platform. AJ Bell youInvest is the behind this; an online platformRead More
IBM’s new Watson, Garage, and Design Studios in Singapore mark a radical departure for how IBM engages its clients. For those in IT this engagement model may be new, but as a former banker it feels very familiar, IBM built a #trading floor for #Fintech.
“ IBM has captured a trading floor’s sense of immediacy, focus on talent, and culture of collaboration“
Now let me immediately dispel any notions that IBM is buying and selling #technology like stocks and bonds, it isn’t. You won’t find traders on the phone selling software licenses or servers. What you will find is that IBM has captured a trading floor’s sense of immediacy, focus on talent, and culture of collaboration and put these traits to work for the benefit of its clients. It radically changes how product lines within IBM work with one another, and how we come together to work for our clients. It is immediate, doesn’t take “no” for an answer and is focused on results.
“ We’re not just playing a bigger game, I thinkwe’ve invented a new game.
Need an interface developer? There’s one in that corner. Could this software be used to capture a certain risk management function? Ask him, he’s an expert. There is simply no precedent for the immediate feedback and collaboration available in the studio and how it will help shape our progress when building something new. The new “trading floor” creates an environment where you are defined not by the limitations of your own knowledge, but by your ability to harness the imagination of the vast pool of talent around you. We’re not just playing a bigger game, I think we’ve invented a new game.
“ Our clients come in and sit with us..…and are free to reimagine their bank without limit “
So why is this a breakthrough for Fintech? Fintech isn’t a specific product or technology, it is discipline that borrows technology from anywhere it can to reimagine finance. The new trading floor makes this easier than ever. Our clients come in and sit with us on the trading floor and are free to reimagine their bank without limit. There are no traditional silos, or cubicle walls, nothing at all that would prevent a banker from talking to a social media expert, or the other way around. Its not about the technology that you know about, its about the technology that you didn’t know existed being brought to you by the people who work with it everyday.
“ All of my #banking clients, no matter how senior, now work in technology, they just don’t know it yet “
There is a paradigm shift underway in finance. All of my banking clients, no matter how senior, now work in technology; they just don’t know it yet. The convergence of finance and technology is so new, that many haven’t realized the full extent to which design thinking is reimagining the future of finance. What is already clear is that it’s the re-engineering of technology to serve finance that is driving the process. Cellphones weren’t made for banking, but with re-engineering do it very well. Our “fintech trading floor” is designed to speed the process of re-engineering and get bankers using the latest tech that IBM has to offer.
“you are defined not by the limitations of your own knowledge, but by your ability to harness the imagination of the vast pool of talent around you “
I feel that I’ve now come full circle in my career back to where I started. I have to confess that I’ve always missed the buzz and excitement of the trading floor. Its great to be back, and even greater to know that I’ll be playing a small part in helping to reimagine the future of banking.
We’ll say this: #virtual #reality #trading looks cool. Citigroup released a #video earlier this week that #shows the potential (tremendous) #power of virtual reality to present data for trading. The example used is a trader at a workstation with a massive monitor — the #technology could equally be used with mobile devices &8212;Read More