At time of writing the share price of SelfWealth Ltd [ASX:SWF] is up 6.2%, trading at 60 cents.
After a sharp uptick as retail investors flooded in, the SWF share price slipped following an early September high:
The company is on the verge of adding US trading functionality to its service, something which boosted its share price today.
SWF share price lifts on December launch
Here are the key points from today’s announcement:
- US trading for SWF retail clients to launch on time, 14 December
- Supported by PhillipCapital
- Available to the more than 65,000 SWF clients via the app later in December
The company highlighted features such as, ‘a USD Cash Account, competitive FX rates when transferring money between the AUD and USD Cash Accounts, low-cost and flat-fee brokerage of USD 9.50 per trade and the choice of over 7,500 US securities across all major US exchanges.’
Outlook for SWF share price
A lot depends on competition here.
This is a legitimate risk to the company’s business model, similar to what happened in the US with their trading platforms.
If a ‘race to the bottom’ on trading fees plays out in Australia, for example if CommSec cuts or eliminates their fees, SelfWealth’s model may need to adapt.
In such a scenario, SWF would likely need to offer a greater variety of products to monetise their client base.
A client base that expanded rapidly shortly after lockdown ensued.
The trend SWF is benefitting from is a powerful one too.
Like many other ASX-listed fintechs, they have carved out their niche and taken a bite out of the Big Four’s business.
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For Money Morning