Free Trading Apps Shake up Industry

Traditional stock trading firms are beginning to feel the pressure from fintech startups who offer in many cases free trading or significantly cheaper trading; the wealth management industry as a whole has been under pressure in recent years to lower fees; these new apps are forcing traditional houses to bring prices down, though some are sticking to their model as they claim the process of clearing and settlement is not cheap; the issue fintech startups will need to figure out is how they can make money in the long term since they will need to reach a certain scale or raise prices to drive revenue; as with many other areas of financial services fintech firms are providing a better, cheaper experience but the questions of if they can make enough revenue and ultimately profit is unknown. Source.

  • Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.