Online trading and investment specialist Saxo Markets has lowered its minimum commission for Australian Securities Exchange (ASX) shares and exchange traded funds (ETFs) to $5 and US shares and ETFs to US$4 ($5.45).
ASX shares and ETFs previously had a minimum commission of $6.99, while US shares and ETFs was $9.90.
As part of the price reduction, Saxo would offer foreign currency accounts so that investors could save on foreign exchange (FX) conversion fees when trading international markets.
Adam Smith, Saxo Capital Markets Australia chief executive, said the retail investment market was booming locally.
“Saxo Markets Australia’s trading client base increased by 56% in 2020 and our new client base increased by 114%,” Smith said.
“We’ve also seen a spike in investors looking to trade international stocks, given that markets like the US have the breadth and liquidity required to facilitate successful trading from either the long or short side.
“With this growth comes a need for increased transparency, as pricing structures and complexities are often cited as challenges for investors looking to navigate the markets and place trades.
“A more transparent and competitive pricing structure removes barriers for our clients as they can make increasingly informed and optimal investment decisions.”