Online trading

Online trading platform shakes up global rout

Leibowitz said the $90 million Series A expansion gave the company breathing space in a congested e-commerce marketplace, and would be used to hire more engineers and invest in underpinning infrastructure. underlying connected to its partners, such as its US broker Drive Wealth, its ASX broker Findlater and its in-house SMSF platform.

“We now have this war chest, so we can weather any storm,” Leibowitz said.

“Having said that, talent has gotten quite expensive to be honest in Australia, so we’re going to be spending money on people.”

cling to growth

During the pandemic, online brokerages saw a surge in new signups as stranded clients turned to stock trading to supplement their income and alleviate boredom, while potentially profiting from COVID-19 disruptions to the markets. markets.

However, retail investment platforms such as Commsec, Charles Schwab, SelfWealth and US-based Robinhood have all recently reported a slowdown in retail investor trading volumes.

Although this pandemic-fueled growth spurt appears to be coming to an end, Leibowitz said 75% of Stake’s new client growth came from existing equity trading platforms.

“Our numbers are better than they were last year, which is great because we’ve had a really good pandemic,” Leibowitz said.

He said new clients had a level of sophistication that was unlikely to go away in the event of a prolonged global rout in stock prices, scaring off novice investors.

“We’re not talking about someone who invests $50 or $100 to try everything, we’re talking about someone who has experience and then comes to us because of the user experience,” he said. he declares.

Mr. Leibowitz said the average account balance on the Stake platform was $10,000.

Stake derives most of its $20 million in revenue from the 1.3% exchange fee it charges when traders buy and sell international stocks, as well as its $3 and $3 fixed ASX trading fee. a monthly subscription that it charges members of its Stake Black program, a data-heavy dashboard program.

US investor Tiger Global has been on a widespread investment spree in recent years and has been the biggest foreign investor in Australian start-ups.

“We are excited to be a part of what Stake is building and supporting the company in the next phase of its journey,” said Alex Cook, Partner at Tiger Global.

“From day one, we’ve been impressed with the team’s focus on better client outcomes and the innovative ways they connect their clients to markets.”