London-based ETX Capital, the brokerage owned by Guru Capital, has jumped into the commission-free bandwagon and announced on Friday the launch of zero-fee trading services for a long list of top-traded stock CFDs.
The brokerage offers trading services with thousands of stock CFDs that are listed on both United States and European exchanges. But, the zero-fee services will be limited to the most popular stock CFDs on the platform, which include company names like Tesla, Apple, Amazon and Barclays.
Commenting on the development, ETX Chief Marketing Officer Nandik Barbhaiya said: “We continue to see the demand for stocks increasing, but there are often so many barriers to new traders looking to try these. ETX wanted to give more people a simpler way to buy and sell these bigger stocks with no minimum charge or commissions.”
Zero-Fee Model Took Over the Industry
Zero-fee stock trading has been popularized by American broker Robinhood, which disrupted the age-old model of the trading industry and even forced established companies to follow the trend to retain their client base.
Regulated in the United Kingdom and Cyprus, ETX has become one of the major brokers providing services to retail traders. Apart from stock CFDs, it offers trading services with Forex and CFDs of indices, exchange-traded funds, bonds and Cryptocurrencies .
ETX’s both British and Cypriot operations were acquired by the Swiss private equity firm, Guru Capital. ETX Capital, which is a London-based business, was acquired last October while the deal for ETX Cyprus was closed in April 2021.
Furthermore, the Swiss parent recently acquired the UK-based fintech, Oval Money, through ETX Capital intending to expand its presence in the financial services industry.
Meanwhile, the activities on ETX Capital increased significantly as the trading revenue surged by 49 percent in the first eleven months of 2020 while trade execution increased by 32 percent.
