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Raisin aims for neobrokers with ESG-centric ETF trading platform

Over 200 ETFs and funds at launch, including 30 ESG funds and an ESG pre-made portfolio.

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Kim Felix Fomm/Raisin

Fintech Raisin is taking yet another step to broaden its offering in Germany, today launching a ‘hybrid-robo’ trading platform that lets investors pick and choose off-the-shelf ETFs.

Raisin is rolling out what it’s calling an “ETF Configurator” giving its customers access to over 200 ETFs and index funds from the likes of Amundi, iShares, Lyxor and Vanguard.

Its trading platform deliberately excludes single stocks and shares because, as Raisin’s chief investment officer Kim Felix Fomm told AltFi, “we think that private investors shouldn't be picking stocks.”

Raisin launched in 2014 as a deposit marketplace, but has since expanded to offer investments, including robo-advice, pensions and now trading.

Fomm said Germany’s leading neobroker Trade Republic has seen huge growth, but is serving “people that definitely don’t have a lot of investing experience”.

“[Raisin’s] idea is to serve a segment that likes to pick their own ETFs, that likes to think about investments, but sees there is actually nothing really to gain by checking their [share] portfolio daily and doing all the trading themselves.”

Because the Configurator is ETF-specific, Raisin’s annual management fee is just 0.43 per cent (plus fund costs) and customers can start investing with just €500 or €50 per month.

The fintech is also including more than 30 ESG (environmental, social, governance) funds on the platform from launch, and is soon adding a pre-made ESG ETF portfolio for socially conscious investors to get started on their investment journey with.

The ESG portfolio provides exposure to around 600 individual equities and is broadly and globally diversified, taking into account not just environmental impact, but also working conditions and tax transparency.

On bringing Raisin’s investment offering to new markets, Fomm told AltFi that “the UK will probably be the first market we look into in Europe, because our deposit business [there] is our second-largest after the German [market].”

Fomm caveated that for 2021 Raisin has no plans to expand the service to the UK.

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