By Aisling Finn on Tuesday 21 July 2020
Dabble, Xinja’s investment account, will be available to customers in August 2020.
Australian digital bank Xinja has today revealed its plans to launch an investment account later this summer.
Dabble, which will be available in August, will give customers access to over 3,000 US stocks and ETFs and, for the first time for an Australian bank, will also allow users to buy a fraction of a US share.
The new platform will cost A$8 (~£4.50) per month for unlimited trading and every trade will also incur a one per cent fee.
Unlike other Australian investment products, customers also won’t have to pay brokerage fees which, according to Xinja, can normally be as high as A$19.50 (~£11) per trade.
Xinja’s new product is a shot across the bow for fellow Australian fintech and US stock trading platform, Stake, which has seen huge levels of growth under lockdown and has dominated the Australian investment ecosystem to date.
Eric Wilson, CEO of Xinja, said: “We are offering low cost, easy access via the Dabble platform, and the option to buy a portion of a share, which we hope opens up markets and investing to people who want to grow their wealth over the long term.”
“Many US-listed companies’ shares trade at very high prices, which locks a lot of people out of the market. So, while brand recognition for leading US companies is very high, few people invest directly.”
All orders made on the platform will be automated and executed when the US market opens with funds only being transferred during US market hours meaning that the only time delay will be the time difference between Australia and New York, rather than several days like the normal process.
As a safety measure, investors will also only be able to invest as much money as is currently in their bank account to prevent customers from investing more than they can afford.
Certain stocks, like Tobacco and weapons-related stocks, as well as leveraged ETFs and options have been excluded from Dabble’s portfolio.