Mobile trading application BUX announced on Wednesday that it will be launching a new stock-trading service for its users.
Called STOCKS, the new mobile application will allow European traders to buy and sell stocks without paying commission fees. A statement released by BUX indicates that its new service will be launched in early 2019.
BUX, a separate mobile application that allows users to trade in contracts-for-difference (CFDs), currently has two million users.
The firm is likely banking on its ability to transfer some of those users over to its new application in the near future. It is encouraging them to do so by offering free stocks to anyone that signs up and funds an account.
STOCKS users will be able to join the new site from their mobile phone. Unlike other brokers, BUX has focused heavily on developing a mobile-focused product.
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That means users can sign up, go through know-your-customer (KYC) processes and start trading all through the mobile application.
“The stock markets have traditionally been inaccessible for the majority of Europeans, but we’re changing that with the launch of STOCKS,” said Nick Bortot, CEO and founder of BUX. “We’re excited about enabling users to save money as well as help their investments compound at a faster rate.”
BUX – tapping into growing equities interest
Interest in equities has grown in the retail market over the past few months, with newcomers to the industry competing alongside established firms to offer stock trading to customers. And with leverage restrictions crippling the CFDs market, the number of firms offering equities looks set to continue.
Some concerns have been raised by traders about these firms. Robinhood in the US, for instance, has been generating huge amounts of cash by selling its order flow to high-frequency trading firms.
One firm, Trading212, has spurned this model and plans on attracting a large client base in order to make cash off of its equities offering.