Budget broker Stake traps 54,000 ASX traders
“It’s amazing the adoption was crazy,” said Leibowitz. “We obviously had an existing base to work with, but a large percentage are actually new clients who only trade Australian stocks.”
The Stake push into ASX trading is the latest salute in a price war first launched by new breed neo-brokers SelfWealth and Superhero in an attempt to grab market share from the retail brokerage arms of the four big banks.
Sydney-based Superhero currently charges $ 5 per transaction, while SelfWealth charges $ 9.50 per transaction. Fees start at $ 14.95 at Nabtrade and $ 19.95 at Commsec, Westpac and ANZ for transactions over $ 1,000.
Two of the five most traded ASX stocks on the Stake app are lithium and electric battery hopefuls Vulcan Resources and Novonix. The darlings of retail investors claim a combined market cap of $ 6.1 billion on earnings of $ 1.6 million between them in the September quarter.
Mr. Leibowitz stated that every Stake customer trading ASX is fully sponsored by CHESS and is assigned their own Holder Identification Number (HIN) by ASX as a Stake customer. According to Mr. Leibowitz, about half of his ASX customers are new registrations, the difference being existing customers who have opened an ASX account in addition to a US account.
“We’re really trying to redo the way the brokerage is done, we don’t need to charge a high fee because of the scale we have,” he said.
Rival app Superhero is expected to have its own run on ASX boards in 2022, though Mr Leibowitz scoffed at speculation that Stake might also seek to go public. “It’s not on the radar right now,” he said.