Australia's Robinhood style trading platform - Superhero

Full article - here (behind paywall)

Cheers,
Oracle.

 

Looks like everybody's doing it, doing it.

Last aspect in your quotes seems a bit of an iffy arrangement to me @oracle.

Happy punters (not) if it suddenly goes pear shaped. Never been a fan of those.

 

Agree, I don't like the sound of that at all, but hey they will save on brokerage

 

Happen to find it's site today - Superhero Pricing - Trade for $5. Start Investing Today. — Superhero



Worthwhile reading the custody structure - Superhero Custody Structure | Knowledge Base

It's a new way of doing things and if your assets are not in any risk I think it is good that the brokerage costs are coming down infact for ETFs it's free.

Interesting times indeed..

Cheers,
Oracle.

 

i already have two accounts ( Commsec and Bell Direct ) three if you count the institutional one that has no current holdings

i NORMALLY don't buy'sell a holding very often

the current system ( both budget level accounts ) is functional for me , not perfect either

so say a Superhero account say trading BBOZ , BEAR or BBUS , maybe some index find trend trading i guess the research into to fine details is needed

DYOR

i need to do more research first

( and i don't normally make a lot of trades a month , i might not be the customer they hope for )

 

Yes but.....
Whether free or dirt cheap, these brokers still need to cover their costs. People seem to ignore that to do so these brokers will rely less on individuals paying for their trades, and more on bulk selling the trades to "capital mgmt" firms. This means two things:
- the customer of the broker is not you anymore, but those firms buying in bulk their trades (customer gets the attention and the service).
- these capital mgmt firms buy these trades in bulk from these free or dirt cheap brokers all over the world to feed into their high-frequency trading (understand they are aware of your trades before they happen, and can place theirs first).

While in principle I always like cheaper products as a consumer, I only like it when it is not against my own interest, which is clearly the case here. So I will happily remain with CommSec and pay higher trade fees rather than feeding the high-frequency market.

 

so many of these types of brokers launching no doubt inspired by Robin Hood's success will they all last?.... not so sure

Sharesies Australia | Investing made easy

 

I've been looking at www.opentrader.com.au which is some of the same pople as the backend provider.
Can't seen any info as to the "custodian ownership" though.

That's not legal here.
Not to say that your orders won't get "front runned".

Superhero and Sharesies are from the same company, private bank.

 

Seem to be two concerns.
Orders can only be market.
Pooled HIN.

 

Just looked a bit further, and yes, you are right, it is not possible in Australia, not a bad thing given the obvious conflict of interest that this creates everywhere else!
With a pooled HIN, do individual share owners still have voting rights or is this transferred to the share custodian?

 

Superhero now supports limit orders as part of the basic offering as well.

 

There is a minimum cost to everything. If you're paying less, then you are providing value in some other way... Data.

(as everyone said) If you're paying nothing, you are the product.