Luna Securities Inc., only two years old as an online stockbroker, plans to capture more of the market through commission fees lower than its peers to reduce the cost of trading for its customers.
Luna Securities said it accepts broker’s commission of only 0.12 percent from its clients and account holders and users, the lowest and “industry best” commission thus far available.
This allows clients to pay the stockbroker a reduced commission depending on the executed gross traded value. Commissions start at P5 for orders of up to P2,500 then drop to 0.2 percent for orders up to P100,000. Orders over P1 million are charged a fee of 0.12 percent.
“These rates are a significant discount to the current industry minimum rate of 0.25 percent of trades, with Luna’s 0.12 percent marking a more 50 percent cut in rates that can be had by any investor or trader today,” the broker said.
Michael John Gatmaytan, Luna Securities chairman, said the stockbroker’s commission rate pricing program will attract more high networth investors into its platform already operating cash flow breakeven the past two years.
“Luna runs on the latest technology available, with a cloud-based, full digital user interface, plus an end-to-end system designed in-house by our fintech team. This allows us to be very efficient and able to offer best in class product, service, and best in rates, all at the same time,” Gatmaytan said.
Francis Diaz, Luna Securities president, said its offering helps make investments affordable.
“With our commission revolution, we can, in our own way, help stocks compete with other emerging classes of financial assets. Luna began with a better user experience and the lowest minimum maintaining balance of just P500. Now we offer a compelling fee structure. With lower fees come the potential for higher investor returns and the incentive to trade. Luna understands there is more work to be done, but we’re here for it, and we are ready,” he said.
Broker commission rates have been set at a minimum rate of 0.25 percent and P20 since 1973, and remained fixed until the Securities and Exchange Commission removed the minimum commission in April this year to boost capital market activity and encourage public participation in stock markets by allowing the investing public to engage the services of brokers of their choice based on cost preference.
Luna Securities is one of the newest member-brokers of the Philippine Stock Exchange. It started live trading operations in March 2022 using a proprietary, cloud-based, end-to-end stock brokerage platform.
The platform is a PSE-certified, fully functional, mobile-based, front-end app, and fully connected to an automated accounting and back-office system, allowing for a high level of speed, efficiency, security and reliability all the way to back-office operation and accounting.
Luna launched its mobile trading app in April last year.
