Trading 212 to offer Australians low-cost trading to global markets

The UK-based ETF and share-trading platform has identified Australia as its next destination for global expansion to provide investors access to the international markets from as low as $1.

Trading 212 is making Australia the next stop following its expansions across the UK and Germany, stating that there is a "clear gap" in the local market for affordable, low-barrier access to UK, European and US shares at a time when many Australians, in particular younger investors, are searching for lower-cost investments.

As part of that push, Trading 212 will offer Australians zero brokerage on share and ETF trading. Fractional investing starts from $1 across some 16 global exchanges, spanning the US, UK and Europe.

The platform will have zero monthly or annual platform fees, while providing daily interest of 5.2% p.a. on uninvested cash balances.

It will also contain multi-currency wallets, allowing clients to hold and be paid out in AUD, and other selected currencies without converting each time.

Commenting, Trading 212 Australia chief executive Eric Peterson explained the distinct features of the platform places itself ahead against other competitors.

"A lot of platforms in this category make their margin by holding onto clients' uninvested cash rather than paying interest on it. We've taken the opposite approach, we pay 5.2% back to clients on their AUD cash, and it's a permanent feature of the product, not a promotional rate that gets wound back after a few months," he said.

"Sixteen global exchanges puts us well ahead of most players in this market.

"It means Australian investors can get direct exposure to offshore names that aren't accessible through most local platforms, German industrials, US technology stocks and other markets that have typically required an international broker or a much higher cost base to reach."