Sydney-based neobank Xinja has today revealed plans to launch its very own share trading platform named Dabble.
Available inside the Xinja Bank app, Dabble will allow Australian users to purchase over 3,000 US stocks and ETFs (exchange traded funds) without any brokerage costs, though the launch of the platform is still subject to regulatory approval.
According to Xinja Bank founder and chief executive, Eric Wilson, the Dabble platform is designed for Australians looking at alternative investment opportunities for their money in an environment where interest rates - including savings account and term deposit rates - sit at historic lows.
"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," he 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 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."
While the neobank won’t charge any brokerage on trades on the Dabble share trading platform, there will be an $8 monthly subscription fee (which covers unlimited trades) plus a 1% foreign exchange fee.
Investors will be able to purchase shares using funds available in a linked Xinja Bank Account and once an order is placed it will be executed as soon as the US market opens. Investments can also be tracked through the Xinja app with share prices displayed in both AUD and USD.
Currently, there is no information as to whether users will have access to other markets, including the Australian market.
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