FinecoBank, an Italian brokerage platform, has announced on Thursday the launch of commission-free trading across thousands of its contract-for-differences (CFDs) offerings.
The platform has approached its UK-based clients with the new business model and stressed that it has not increased any spread or charging any hidden fees.
According to the press release shared with Finance Magnates, the platform is witnessing a record number in executed trades and volumes after it stopped charging trading fees.
Commenting on the new model, Paolo di Grazia, deputy general manager of FinecoBank, said: “As the number of traders increases – with more people looking to actively invest – the ability to trade equity CFDs for free is a vital advantage. In the market, there is always a catch, or a case of ‘zero-commission, but.’ I am pleased to be able to offer zero-commission trading for FinecoBank customers with no compromise.”
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“We have built on the fact that we are an established European bank and can continue to provide an unrivalled offering for those who are serious about trading and can benefit from our operative leverage.”
COVID-19 impact on broekrs
With operations across Europe, FinecoBank offers single account banking, credit, trading, and also investment services. Its multi-asset trading platform enables clients to trade equities, ETFs, CFDs, FX options, and futures, under a single portfolio.
With the market volatility triggered by COVID-19, the platform is also recording a spike in trade volume and new clients. According to FinecoBank, it currently serves over 1.36 million – a jump of 4 percent year-over-year.
Disrupted by Robinhood, many brokers were forced to adopt the zero-fee model as more and more traders are hesitating to pay for each trade execution.
Earlier this year, FXCM collaborated with Interactive Brokers to join the companies offering commission-free services for equity trading.