Subject to regulatory approval, Xinja Bank plans to offer its new platform named Dabble through its banking app, giving investors access to more than 3,000 US stocks and ETFs.
The neobank said it would charge a flat monthly subscription fee of $8 for unlimited transactions in addition to a 1 percent foreign exchange fee per transaction, with no brokerage fees.
Dabble will also offer fractional trading, where investors can buy portions of shares.
Xinja Bank founder and chief executive Eric Wilson said Dabble would offer its customers access to alternative investment options, particularly when interest rates remain low.
The neobank said it was feeling the effects of the RBA’s interest rate movements in May, when it cut the rate on its Stash savings account from its previous 2.25 per cent to 1.8 per cent. hundred.
“We offer [low-cost] easy access through the Dabble platform and the ability to buy a portion of a stock, which we hope opens up markets and investing for people who want to grow their wealth over time. [long-term]” said Mr. Wilson.
“The shares of many U.S.-listed companies are trading at very high prices, excluding many people from the market. So, even though the awareness of large American companies is very high, few people want to invest directly. And entering the market was not easy.
“We want to reduce costs and make it simpler to deliver these opportunities to Australians.”
Xinja clients will only be able to invest the amount of money currently available in their bank account and those who engage in day trading, buying and selling a stock within the day, four days in a row, will have their accounts blocked.
Xinja obtained its full banking license in September.
