Making it count: Stock Markets 101

In light of our soon-to-be-launched stock trading platform, Dabble - the latest instalment of our ‘making it count’ blog series breaks down the 101 on stock markets :chart_with_upwards_trend:

To take a look, follow the link below :blush:

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A few thoughts and questions…

If investing is what you are encouraging rather than riskier trading why refer to it as Xinja’s share trading platform ?

Why start with US equities rather than Australian equities where there is no exchange risk or fx fees ? Eg lower cost to customers and less risk.

Also doesn’t the pricing structure encourage trading more than investing eg unlimited free trades ?

Also keen to understand the 1% fx fee - is it every time you buy or sell a stock ? If so does that mean you can’t move money to $US and then buy and sell in $US ?

Thanks

Hey @hello! We did think a lot about that phrase however we were looking for something that would be understood in shorthand and so went with common parlance. We started in the US because there is more access to the ASX here already for people and part of the point was to offer diversity, plus it’s the largest stock market in the world. We are thinking of offering ASX as well later on. The pricing structure is designed to make it affordable and also easier for people to make smaller investments. If you charge a fee of $19, then investing $100 in something is not worth it. This way people can set up a varied, wider portfolio of smaller investments affordably. The FX fee is 1% on top of the wholesale market rate every time you buy or sell. You don’t fund a $USD account and operate from there but directly from your Xinja bank account, so there is a currency conversion each time you either buy or sell.

Also to note:

The US and Australian markets work differently with respect to legal ownership of a share.

I think that you cannot buy a fractional share on the ASX as the CHESS system records ownership on a per share basis.

The US system is older and allows a share to be split between numerous people (A fraction)

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