By Oliver Smith on 2nd September 2019
With 50,000 users Matthew Leibowitz is bringing his commission-free business to Britain.
AltFi understands the FCA has awarded Australian startup Stake a license to launch its share trading business in the UK, putting it on track to debut in a few months.
“Our FCA approval marks our first license outside of Australia, but the continuation of our mission to bring the US market to the rest of the world,” Stake CEO and founder Matthew Leibowitz told AltFi.
“At the end of the day, when it comes to trading, Wall Street is mecca—the size and scale of the opportunity there just dwarfs other stock markets.”
In Stake’s Australian home market the company counts 50,000 users, with an average age of 32 and an average deposit of £7,000.
Stake works with US digital broker DriveWealth to offer access to US stocks and shares—ironically the same provider that Revolut is currently using—but therefore has no UK or European coverage currently.
“There is more money moving through Apple and Netflix securities each day than the entire LSE,” said Stake’s European Managing Director Richard Watrasiewicz. “For too long it’s been complicated, costly and expensive and in a few months from now, it won't be.”
“The US stock exchanges combined make up 39% of the entire global stock market value, with a market capitalisation of $31 trillion, and are bigger than the next 7 exchanges combined. This is where the world trades, giving the UK easy access to this amazing market is what we do.”
In Australia Stake doesn’t charge commission or a trading fee, but does charge its clients 0.7% to convert their funds into Dollars.