Xinja to launch trading platform

Subject to regulatory approval, Xinja Bank has plans to offer its new platform named Dabble through its banking app, giving investors access to more than 3,000 US shares and ETFs.

The neobank stated it will charge a flat monthly subscription fee of $8 for unlimited trading on top of a 1 per cent FX fee per trade, with no brokerage fees.

Dabble will also offer fractionalised trading, where investors will be able to buy portions of shares.

Xinja Bank founder and chief executive Eric Wilson said Dabble will give customers access to an alternative investment options, particularly when interest rates remain low.

The neobank signalled it was feeling the pinch of the RBA’s cash rate moves in May, when it lowered its Stash savings account rate from its previous 2.25 per cent to 1.8 per cent.

“We are offering [low-cost] easy access via the Dabble platform, and the option to buy a portion of a share, which we hope opens up markets and investing to people who want to grow their wealth over the [long-term],” Mr Wilson said.

“Many US-listed companies’ shares trade at very high prices, which locks a lot of people out of the market. So while brand recognition for leading US companies is very high, few people want to invest directly. And entering the market hasn’t been easy.

“We want to lower the cost and make it simpler to bring those opportunities to Australians.”

Xinja customers will only be able to invest as much money as is currently in their bank account and those who engage in pattern day trading, buying and selling a stock within a day, four days in a row, will have their account blocked.

Tobacco and weapons-related stocks have also been excluded from the platform.

Xinja gained its full banking license in September.

Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.

You can contact her on This email address is being protected from spambots. You need JavaScript enabled to view it..

 

FROM THE WEB