The platform says it will scrap commission fees on stocks allowing for substantial savings compared with other well-known names.
Investment platform eToro will soon introduce zero commission for UK customers buying or selling stocks on its platform following the emergence of a major new trend in the UK disruptive finance industry.
Iqbal Gandham (pictured), UK managing director at eToro says the firm is “on a mission” to get Britain investing. First step, make it far more affordable.
“If I’m a first time investor wanting to buy a few stocks, how can you justify charging me 3 per cent to do so? Either the new investor baulks at the outset, or is stung later down the line when they discover the cost. It’s an instant barrier to investing. So we’re making it simple - no transaction fees, no mark-up on spreads, no custody charge, and no stamp duty.”
The firm says that Investors could save up to 50 per cent on fees with eToro compared with other popular UK platforms, currently absorbing the cost of Stamp Duty Reserve Tax on trading British stocks and not charging a quarterly management or administration fee.
Gandham continued: “As an industry we need to get people excited about investing. Price is a great starting point but alone is not enough. We need to show people how they can invest in their passions and the brands they care about. For most investors the FTSE100 means absolutely nothing.
“We need to work harder to engage consumers and build a connection between individuals and companies.”