Mogo Inc., a digital Payments and financial technology company, announced on Tuesday that it inked a partnership with CI Investment Services Inc. to provide back-office services for supporting its upcoming commission-free stock trading app, MogoTrade.
According to the press release, CI Investment Services, a Canadian broker-dealer, is expected to provide clearing and settlement services, custody of client funds and securities and trade execution. That said, Mogo aims to complement its in-house capabilities to scale the forthcoming MogoTrade app.
“This agreement represents another important step in the development of our MogoTrade commission-free stock trading solution, which we expect will launch later this year. CI is a high-quality, tech-savvy partner, and we will leverage their capabilities to bring the best-in-class operational execution to match what we expect will be a best-in-class product and user experience in the Canadian market. Like Mogo, they are an innovative, non-bank organization, and they bring the scale and depth of resources to support our needs as we grow,” Greg Feller, President of Mogo, stated.
About the launch of MogoTrade, it is still pending approval for regulatory non-objection from the Investment Industry Regulatory Organization of Canada and the Québec Autorité des marchés financiers. CI Investment Services is a wholly-owned subsidiary of CI Financial Corp, which is listed on the Toronto Stock Exchange and the New York Stock Exchange.
With the Mogo app, the company offers a digital spending account via Mogo Visa Platinum Prepaid Card, which is available to Canadian residents.
PayPal to Launch a Stocks App?
In August, PayPal, the US-based payments giant, was reportedly considering making its entry into the stocks trading industry. The company was thinking about launching a stock-Trading Platform for its U.S. users. One of the hints given by PayPal was the recent appointment by an executive experienced in the sector, Richard Hagen Jr., who served as President at Ally Invest.
