SINGAPORE: Investors in Singapore looking to trade US-listed stocks and exchange-traded funds (ETFs) will soon have another option, as digital wealth manager Syfe launches its brokerage offering.
Syfe Trade, the new platform which officially goes live next month, will offer fractional trading – an option that is not common among existing online brokers in Singapore – and commission-free trades every month, said the Singapore-based financial technology (fintech) start-up on Thursday (Dec 16).
Launched in Singapore in July 2019, Syfe has been part of the burgeoning robo-advisor market whose tech-based and low-cost investment services have gained popularity in recent years. Robo-advisers got a further boost during the COVID-19 pandemic as more people step up to manage their finances.
With its latest announcement, the start-up is wading into another booming but competitive space. New online trading platforms, like moomoo and Tiger Brokers, have been aggressively courting investors with sign-up incentives such as 180-day commission-free trading, cashbacks and free shares.
As part of its “introductory offer”, Syfe Trade will offer users five commission-free trades and thereafter, an “all-inclusive” flat fee of US$0.99 (S$1.35) a trade.
When the offer comes to an end in the first quarter of 2022, users will continue to receive two free trades a month. The fee per trade after that will stay “competitive” at US$1.49.
There will also be cash credits for new users who deposit at least S$1,000 into their trading accounts and for successful referrals, the company’s representatives said at a virtual media session held a day before the announcement.
But founder-CEO Dhruv Arora stressed that Syfe does not intend to compete based on “crazy promotions”. Instead, it is banking on its product offerings to differentiate itself.
For one, the new platform will offer fractional trading. As its name suggests, it allows investors to buy fractional shares of a listed company or ETF. For instance, instead of forking out more than US$3,000 on an Amazon share, an investor can buy as little as a US$1 worth of a share.
“(This) puts us in a very good spot for people who want to build their own diversified portfolios with different sizes,” said Mr Arora, adding that this option also helps investors to "(make their) money efficient till the last dollar".
Syfe Trade will also provide a simplified user experience that is similar to the existing Syfe app, allowing users to view their portfolio at a glance as well as access real-time market data and analysis.
Security is also key, the company said, noting that its trading platform is protected by the Securities Investor Protection Corporation (SIPC) in the United States. This means the US securities are held in individual accounts and protected against any loss of up to US$500,000 in the event of a brokerage failure.
Money transferred to Syfe is held in a trust account with HSBC and kept separate from Syfe’s own accounts, the fintech added.
“For far too long, the decades-old brokerage industry was in need of a major disruption with high fees and an experience laden with inefficient processes and interfaces. While there have been new entrants, we are building on the success of our wealth offering and enhancing it further,” said Mr Arora.
More importantly, the firm has taken “a big step” in building an “all-in-one wealth and money management platform”.
“This is part of the same mission Syfe has had from day one – to further democratise investing for everyday investors,” the CEO added.
Syfe Trade will be officially launched on Jan 17 but those interested can join a waitlist from Thursday to gain early access.
The goal is to onboard 100,000 users in Singapore within the first six months, said Mr Arora.
It is also looking to add other stock exchanges to the new platform. It said it is already working with the Singapore Exchange and hopes to enable access to the local market “over the next couple of quarters”.
Meanwhile, its existing wealth offering will be renamed as Syfe Wealth.
The start-up has said it is expanding into Hong Kong. It is also eyeing other markets which it hopes to announce early next year.
Alongside the roll-out of Syfe Trade and geographical expansions, there are plans to hire another 100 employees over the next 12 months, Mr Arora said.
Earlier in July, Syfe closed a US$30 million Series B funding round that was led by US-based venture capital fund Valar Ventures. This brings the total amount of money raised to more than US$50 million, it said.
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Syfe Trade, the new platform which officially goes live next month, will offer fractional trading – an option that is not common among existing online brokers in Singapore – and commission-free trades every month, said the Singapore-based financial technology (fintech) start-up on Thursday (Dec 16).
Launched in Singapore in July 2019, Syfe has been part of the burgeoning robo-advisor market whose tech-based and low-cost investment services have gained popularity in recent years. Robo-advisers got a further boost during the COVID-19 pandemic as more people step up to manage their finances.
With its latest announcement, the start-up is wading into another booming but competitive space. New online trading platforms, like moomoo and Tiger Brokers, have been aggressively courting investors with sign-up incentives such as 180-day commission-free trading, cashbacks and free shares.
As part of its “introductory offer”, Syfe Trade will offer users five commission-free trades and thereafter, an “all-inclusive” flat fee of US$0.99 (S$1.35) a trade.
When the offer comes to an end in the first quarter of 2022, users will continue to receive two free trades a month. The fee per trade after that will stay “competitive” at US$1.49.
There will also be cash credits for new users who deposit at least S$1,000 into their trading accounts and for successful referrals, the company’s representatives said at a virtual media session held a day before the announcement.
But founder-CEO Dhruv Arora stressed that Syfe does not intend to compete based on “crazy promotions”. Instead, it is banking on its product offerings to differentiate itself.
For one, the new platform will offer fractional trading. As its name suggests, it allows investors to buy fractional shares of a listed company or ETF. For instance, instead of forking out more than US$3,000 on an Amazon share, an investor can buy as little as a US$1 worth of a share.
“(This) puts us in a very good spot for people who want to build their own diversified portfolios with different sizes,” said Mr Arora, adding that this option also helps investors to "(make their) money efficient till the last dollar".
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Syfe Trade will also provide a simplified user experience that is similar to the existing Syfe app, allowing users to view their portfolio at a glance as well as access real-time market data and analysis.
Security is also key, the company said, noting that its trading platform is protected by the Securities Investor Protection Corporation (SIPC) in the United States. This means the US securities are held in individual accounts and protected against any loss of up to US$500,000 in the event of a brokerage failure.
Money transferred to Syfe is held in a trust account with HSBC and kept separate from Syfe’s own accounts, the fintech added.
“For far too long, the decades-old brokerage industry was in need of a major disruption with high fees and an experience laden with inefficient processes and interfaces. While there have been new entrants, we are building on the success of our wealth offering and enhancing it further,” said Mr Arora.
More importantly, the firm has taken “a big step” in building an “all-in-one wealth and money management platform”.
“This is part of the same mission Syfe has had from day one – to further democratise investing for everyday investors,” the CEO added.
Syfe Trade will be officially launched on Jan 17 but those interested can join a waitlist from Thursday to gain early access.
The goal is to onboard 100,000 users in Singapore within the first six months, said Mr Arora.
It is also looking to add other stock exchanges to the new platform. It said it is already working with the Singapore Exchange and hopes to enable access to the local market “over the next couple of quarters”.
Meanwhile, its existing wealth offering will be renamed as Syfe Wealth.
The start-up has said it is expanding into Hong Kong. It is also eyeing other markets which it hopes to announce early next year.
Alongside the roll-out of Syfe Trade and geographical expansions, there are plans to hire another 100 employees over the next 12 months, Mr Arora said.
Earlier in July, Syfe closed a US$30 million Series B funding round that was led by US-based venture capital fund Valar Ventures. This brings the total amount of money raised to more than US$50 million, it said.
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