By Liza Tetley on Wednesday 4 May 2022
Customers can now invest in companies like Apple and Microsoft paying only fees, regulatory charges, and currency conversion mark-ups.
European savings and investing app, Plum, has become yet another fintech to subscribe to the commission-free investing model that is fast becoming commonplace among the trading community.
The fintech’s new feature allows customers to invest in fractional company shares, commission free, including some of the world’s best-known companies, such as Apple, Tesla, Nike, and Microsoft.
Customers will continue to pay £1 per month in subscription fees for an ISA or GIA account, and an annual average of 0.48 per cent for fund management and platform fees.
The company also says it will maintain its 0.45 per cent currency conversion markup, as well as a regulatory charge. Together, this translates into £0.90 in fees for every transaction worth £100.
“We want to help our customers make their money go further and encouraging a balanced approach to investing is one of the most effective ways we can do this,” says Victor Trokoudes, CEO & co-founder of Plum.
Founded in 2016, Plum now has almost 1.2m users, and has raised $46m since its inception. The company claims it has made a good start to 2022, boasting over 130,000 app downloads across Europe in January alone, and with a strong adoption from first-time investors.
Plum says its product aims to simplify investing by becoming an “all-in-one shop” to help customers better manage their finances.
“As a teen, my parents encouraged me to invest a small amount of money so that I could learn about the value of the stock market first-hand,” says Trokoudes. “Even though I understood the value of long-term investing, I didn’t keep it up. Today, those shares are worth 300x the price I paid, and I wish I’d held onto them.”
The company is the latest fintech to join the swelling ranks of investment platforms that offer commission-free stock trading. Revolut, Freetrade, Square, and Robinhood have all crowded into the space in recent years, hiking competitivity in pricing between industry players. Plum says its latest offering now places it among the UK’s most competitively priced investment platforms.