Online stockbroker Luna Securities Inc., one of the newest member-brokers of the Philippine Stock Exchange (PSE), looks to expand its market reach and achieve profitability with its offering that reduces cost of trading.
Luna Securities late last week said it will begin to offer broker’s commission rate of 0.12 percent to all of its clients, account holders and users, the lowest and “industry best” commission that is made available to investors thus far.
This allows clients to pay the stockbroker at a reduced commission depending on their executed gross traded value – commission starts at P5 for orders of up to P2,500 and then drops to 0.2 percent for orders up to P100,000, with the 0.12 percent commission availed for orders over P1 million.
“These rates are a significant discount to the current industry minimum rate of 0.25 percent of trades, with Luna’s 0.12 percent marking a more 50 percent cut in rates that can be had by any investor or trader today,” Luna Securities said.
Michael John Gatmaytan, Luna Securities chairman, expressed optimism that with the stockbroker’s “dynamic commission rate pricing program” will attract more high net worth investors into its platform which in the two years it has been operation is cashflow breakeven.
“Luna runs on the latest technology available, with a cloud-based, full digital user interface, plus an end-to-end system designed in-house by our fintech team. This allows us to be very efficient and able to offer best in class product, service, and best in rates, all at the same time” also said Gatmaytan.
Francis Diaz, Luna Securities president, said the company’s offerings have made investments affordable.
“If Luna made stocks accessible and advanced before, it is also affordable now. With our commission revolution, we can, in our own way, help stocks compete with other emerging classes of financial assets. Luna began with a better user experience and the lowest minimum maintaining balance of just P500. Now we offer a compelling fee structure. With lower fees comes the potential for higher investor returns and the incentive to trade. Luna understands there is more work to be done, but we’re here for it, and we are ready” Diaz said.
Broker commission rates have been set at a minimum rate of 0.25 percent and P20 since 1973, and remained fixed until the Securities and Exchange Commission removed the minimum commission in April this year, in a bid to boost capital market activity as well as to encourage public participation in stock markets by allowing the investing public to engage the services of broker of their choice based on cost preference.
Established October 2021, Luna Securities started live trading operations last March 2022, using its proprietary, cloud-based, end-to-end stock brokerage platform.
The platform consists of a PSE-certified, fully functional, mobile-based, front-end app, and fully connected to an automated accounting and back-office system, allowing for a high level of speed, efficiency, security and reliability from customer experience all the way to back-office operation and accounting.
Luna launched its mobile trading app to the public in April 2023.
