New commission-free online broker dough has managed to secure $20 million in funding from tastytrade, Inc., an online financial network, in order to support the company’s mission to offer retail clients investment capabilities without commissions.
dough, which is led by Victor Jones, former director of Trading and Operations at TD Ameritrade, offers commission-free trading on listed stocks and exchange-traded funds (ETFs).
Commenting on the development, Jones said: “The next generation of investors are looking for more than bare-bones investing and wealth management platforms targeting them with slick promotions only to leave them high and dry when it comes to content, service, and functionality. dough is going to elevate the level of competition.”
Located in Chicago, the broker will start accepting customers in September of this year. Tastytrade is an online network which provides content regarding financial information, investment strategies, and entertainment related to options trading and the stock market.
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As part of its offering, dough will not put a limit on account sizes and will leverage tastytrade’s infrastructure to bring its platform to retail investors, the statement released today said.
“Our investment in dough validates our commitment to all traders and investors regardless of age or account size,” explained Kristi Ross, Co-CEO of tastytrade, Inc. “This new platform will raise financial engagement and enable an entirely new generation to participate in wealth creation.”
The days of paying commissions are numbered
Customers of the Chicago broker will be charged a monthly subscription fee of $1. Customers who sign up on their waitlist will receive a one-year subscription free of charge. According to Jones, paying for commissions to trade stock will become as common as having a landline.
“At tastytrade we love investing in industry disruptors and we believe dough will play a major role in engaging millions of future decision makers. Active financial participation is key no matter your account size or age because the next thing you know you’re 50,” the Co-CEO of tastytrade, Inc. Tom Sosnoff added.